SEI Investments

SEI 2014  
Annual Report

We achieved improved financial results, 
delivered record returns to shareholders, 
and made solid progress in executing 
strategies positioning SEI as a leading 
global provider of wealth and investment 
management services.

seic.com

About SEI
SEI is a leading global provider of asset management,  
investment processing, and investment operations solutions. 
We help professional wealth managers, institutional investors, 
investment management firms and private investors create 
and manage wealth. We also enable their long-
term success by providing solutions that are 
both innovative and comprehensive. 

Contents

Financial Highlights

Letter to Shareholders

Annual Report on Form 1 0-K

Forward-Looking Statements

Additional Information

SEI’s Internet site, www.seic.com, offers additional 
information about the company including earnings 
announcements, corporate press releases, and 
regulatory filings. This Annual Report, Form 1 0-K, 
and Proxy Statement are available in the Investors 
section of the website.

This report contains statements that constitute forward-looking statements as defined under U.S. federal 
securities laws. These statements include discussions about future strategies, operations, and financial 
results. These statements are based upon estimates and assumptions that involve risks and uncertainties 
and may not prove to be accurate. Future revenues and income could differ materially from expected 
results. You should refer to the 201 4 Annual Report on Form 1 0-K, included herein, for a description of 
various risks and uncertainties that could affect our future financial results.

SEI 2014 Annual Report 

Financial Summary

(In thousands, except per-share data)

201 4

Change from 201 3

Revenues

Income from operations

Net income attributable to SEI

Diluted common shares outstanding

Diluted earnings per share

$1,266,005

$352,784

$318,713

172,565

$1.85

12%

42%

1 1 %

(2%)

1 3%

Highlights
››  Revenue growth reflects new business sales, increased cash flows into our investment 
management programs, and capital market appreciation of assets under management 
or administration.

››  Profitability increased on the strength of revenue growth and the scale inherent in  

SEI’s businesses. 

››  Results for 2014 and 201 3 include other income from the sale of a subsidiary, and  

201 3 results include other income from a litigation settlement. After excluding these 
items, diluted earnings per share would have been $1 .83 in 2014 and $1 .39 in 201 3,  
and represents a year-over-year growth of 32%. 

››  We returned a record $ 350.1 million in capital to shareholders through stock purchases 

and paid dividends.

To Our Shareholders
It was a good year for your company.  
We achieved improved financial results  
on strong sales of new business and 
delivered record returns to shareholders. 
We also made solid progress in executing 

strategies positioning SEI as a leading 
global provider of wealth and investment 

management services.

Alfred P. West, Jr.
Chairman and 
Chief Executive Officer

We achieved improved financial results

Revenues increased 12% to $1 .3 billion, net income attributable to SEI grew 1 1 % to  
$31 8.7 million and diluted earnings per share increased 1 3% to $1 .85.

Results for 2014 and 201 3 include other income from the sale of a subsidiary, and 201 3 
results include other income from a litigation settlement. After excluding these items, 
diluted earnings per share would have been $1 .83 in 2014 and $1 .39 in 201 3, an increase 
of 32%. 

Strong sales results, increased cash flows into SEI investment management programs, 
and positive capital market performance were important contributors to revenue growth. 
One important measure of success, equity and fixed-income assets under management 
for SEI, excluding those of our affiliate LSV, grew from $121 .3 billion to $1 36.1 billion, an 
increase of 12%. 

Profitability increased on the strength of revenue 
growth and benefited from the scale inherent  
in SEI’s businesses. The Investment Advisors, 
Institutional Investors and Investment Managers 
segments achieved strong profit and margin 
growth. The Private Banks segment earned 
modest profits and remains focused on 
improving its results through sales of the SEI 
Wealth PlatformSM (the Platform), a source of 
longer-term revenue growth. 

“ Profitability increased 
on the strength of revenue 

growth and benefited from  

the scale inherent in  
SEI’s businesses.”

We continued to generate strong cash flow to reinvest in the business and return capital 
to shareholders. In 2014, SEI returned a record $ 350.1 million in capital to shareholders 
through stock purchases and paid dividends.

The 2014 Annual Report on Form 1 0-K, which accompanies this letter, provides a detailed 
discussion of company and segment financial results. 

We achieved strong new-business sales

In a very good year for new business, total net sales were $97 million of which $85 million 
— a record high for SEI — will recur annually when contract values are fully realized.  
While all segments reported sizeable contributions, the Investment Advisors, Institutional 
Investors and Investment Managers segments achieved impressive sales results. 

“ In a very good 
year for new business, 
total net sales were  
$97 million…”

In the Private Banks segment, we achieved modest sales 
of recurring processing services. In addition, we sold 
one-time, revenue-generating professional services to 
prospective clients during sales activities related to the 
SEI Wealth Platform. Marketing efforts for the Platform are 
focused on large financial institutions where we face long 
sales processes. Although it is taking longer than we 
would like to win one of these clients, we are encouraged 
by this expansion of marketing activity in 2014.

We also focused our attention on sales of investment management programs to large 
distributors, such as private banks and wealth managers in the United States, the United 
Kingdom and Canada. We achieved growing sales momentum and realized net cash 
flows that were a significant increase over results from 201 3.

We had an exceptional sales year in the Investment Advisors segment. Sales momentum 
accelerated in 2014 and we had good success both with the recruiting of new advisors 
and with sales of our investment management programs. We had an excellent recruiting 
year as we initiated relationships with 603 new advisors. Net cash flows were very strong 
and represent one of this segment’s best performances in SEI’s history. 

The Institutional Investors segment achieved strong sales of investment outsourcing 
solutions to union, corporate and municipal retirement plans, as well as to foundations, 
endowments and healthcare organizations. Outsourcing continues to gain momentum 
among institutional investors of all types as new clients were diversified by geography, 
size and market segment.

This was also a strong sales year in the Investment Managers segment, where new 
business activity came from a mix of traditional and alternative managers. We continue  
to drive momentum in this segment by earning a greater share of business from existing 
clients and by focusing on larger investment management firms with more complex 
business needs.

Solid progress in executing strategies

SEI also made solid progress in executing strategies in each of its markets. We view the 
growing market acceptance of these strategies as a validation of ongoing investments to 
serve clients in rapidly changing wealth and investment management markets.

We continued to make progress with the  
delivery of the SEI Wealth Platform for 
private banks and other wealth advisory 
firms. Existing clients grew their books  
of business operating on the Platform,  
and we implemented additional bank 
clients. Worldwide, we now have 25 clients 
operating on the Platform and another five 
clients undergoing implementation. We are 
also delivering functionality that is important 
to banks and advisors in our target markets, 
building out operational infrastructure to 
support the growth from new and existing 
clients, and scaling technology delivery and 
operations to improve efficiency. 

“ We view the growing  
market acceptance of  
these strategies as a 
validation of ongoing investments 

to serve clients in rapidly 

changing wealth and investment 
management markets.”

We also are focused on delivering investment management programs to banks and  
other financial intermediaries. In 2014, we continued to drive momentum in this business 
by building out our sales and marketing organizations, delivering new capabilities, 
supporting larger clients, and growing our network of global distribution relationships.

In the investment advisors segment, growth strategies focus on expanding the value we 
provide advisors in every aspect of their business. In 2014, we released a steady stream 
of product innovations addressing practice management, investment management, 
operations and technology. We also implemented additional clients onto the SEI Wealth 
Platform, an important element of SEI’s long-term growth strategy in this market. 

SEI is one of the first and largest global providers of outsourced investment management 
services for institutional investors and we are focused on maintaining our leadership 
position in this competitive market. With over 20 years of experience, we have a 
significant market presence in the United States, the United Kingdom, and other global 
markets. We are growing this business by delivering new advice and investment services, 
expanding into new markets, serving larger clients and expanding globally.

We continue to develop and deliver new capabilities for investment managers on  
our comprehensive operating platform, a business infrastructure that spans operating 
functions, product types and asset classes. Our growth strategy focuses on product 
innovation: delivering insightful analytics and automation for the front-office, and 
operational and compliance enhancements for the middle and back offices. 

We are focused on the success of our clients

These continue to be challenging times for the investment services industry. Individual and 
institutional investors face complicated decisions around investment goals and product 
alternatives. Investment and wealth managers face proliferating product lines, complex 
and highly regulated operating environments, and increasingly demanding investors. 

But dynamic industry trends also present significant opportunities for outsourcers like SEI.  
Our solutions are designed to help both investors and wealth managers meet these 
challenges, focus on their core competencies, and improve their opportunities for success. 

“ SEI has created a legacy  
of innovation focused 
on client success.”

SEI has created a legacy of innovation focused on 
client success. In 2014, we launched a company-wide 
effort to strengthen our culture of innovation even 
further. We are empowering and energizing everyone 
at SEI to help clients and to grow our business even 
more rapidly and effectively. 

Looking back on the year, I am proud of our accomplishments in 2014. I am even 
prouder of SEI’s dedicated employees and business partners. Their talents, creativity  
and engagement are vital to sustaining ongoing product innovation efforts and critical  
to enabling client and SEI success. 

This engagement is also evident in the activities of numerous employee-led initiatives. 
Two of our largest and most active organizations are the SEI Women’s Network, a group 
that encourages the professional success of SEI’s many talented women, and SEI Cares, 
a global philanthropy initiative. 

As an example, SEI Cares assisted some 60 organizations through 8,000 volunteer hours 
and $500,000 in donations and grant sponsorships in 2014. SEI employees also actively 
participated in disaster relief efforts in the United States and in the Philippines. We are 
proud that employee engagement extends to the larger global community in which we 
operate and in support of SEI’s corporate values of social responsibility.

As always, we are focused on the success of our clients, as their success is the true 
measure of our success. We are working hard to deliver new solutions, maintain a base of 
highly satisfied clients, grow new business events, and improve productivity. Longer-term, 
we are highly confident SEI’s solutions will make our services more valuable to clients, 
strengthen our competitive advantage, enable us to serve increasingly larger clients and 
expand our market opportunities. 

I thank clients for their loyalty and inspiration, employees and business partners for their 
engagement and creativity, and our shareholders for their insights and trust. 

Alfred P. West, Jr. 
Chairman and Chief Executive Officer

 
 
 
 
 
 
UNITED STATES   
SECURITIES AND E XCHANG E COM M ISSION

Washington, D.C. 20549

FORM 1 0 -K

(Mark One)

[X ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended

 December 31, 2014

OR

[  ]  TR ANSITION REPORT PURSUANT TO SECTION 13 OR 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
(State or other jurisdiction of incorporation or organization)

23-1707341
(I.R.S. Employer Identification No.)

1 Freedom Valley Drive, Oaks, Pennsylvania
(Address of principal executive offices)

Registrant’s telephone number, including area code

19456-1100
( Zip Code)

610-676-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class 
Common Stock, par value $.01 per share 

Name of each exchange on which registered
The NASDAQ Stock Market LLC 
(The NASDAQ Global Select Market®)

Securities registered pursuant to Section 12(g) of the Act:

None

( Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  
Yes [X ]  No [   ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 1 3 or 1 5(d) of the Act.  
Yes [   ]  No [X ]

Indicate by check mark whether the registrant (1 ) has filed all reports required to be filed by Section 1 3 or 1 5(d) of the Securities 
Exchange Act of 1 934 during the preceding 1 2 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 and posted on its corporate Web site, if any, every 
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the 
preceding 1 2 months (or for such shorter period that the registrant was required to submit and post such files).  
Yes [X ]  No [   ]

i

 
 
 
 
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not 
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements 
incorporated by reference in Part III of this Form 1 0-K or any amendment to this Form 1 0-K.  [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller 
reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 1 2b-2 of 
the Exchange Act.

Large accelerated filer [X ]

Accelerated filer [   ]

Non-accelerated filer [   ]  
(Do not check if a smaller 
reporting company)

Smaller reporting company [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 1 2b-2 of the Act).  Yes [   ]  No [X]

The aggregate market value of the voting common stock held by non-affiliates of the registrant was approximately $4.3 billion based 
on the closing price of $32.77 as reported by NASDAQ on June 30, 201 4 (the last business day of the registrant’s most recently 
completed second fiscal quarter). For purposes of making this calculation only, the registrant has defined affiliates as including all 
executive officers, directors and beneficial owners of more than ten percent of the common stock of the registrant.

The number of shares outstanding of the registrant’s common stock, as of the close of business on January 30, 201 5:

Common Stock, $.01 par value 

1 66,832,044

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the following documents are incorporated by reference herein:

1. 

 The definitive proxy statement relating to the registrant’s 201 5 Annual Meeting of Shareholders, to be filed within 1 20 days after 
the end of the fiscal year covered by this annual report, is incorporated by reference in Part III hereof.

i i

 
SEI INVESTM ENTS COM PANY

Fiscal Year Ended December 31 , 201 4

Table of Contents

PA RT  I

Item 1.

Business.

Item 1A. Risk Factors.

Item 1B. Unresolved Staff Comments.

Item 2.

Properties.

Item 3.

Legal Proceedings.

Item 4. Mine Safety Disclosures.

PA RT  I I

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Item 6.

Selected Financial Data.

Item 7.

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

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Item 8.

Financial Statements and Supplementary Data.

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Item 9A. Controls and Procedures.

Item 9B. Other Information.

PA RT  I I I

Item 10. Directors, Executive Officers and Corporate Governance.

Item 11.

Executive Compensation.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Item 14. Principal Accounting Fees and Services.

PA RT  I V

Item 15. Exhibits, Financial Statement Schedules.

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10

13

13

13

14

15

16

16

31

31

64

64

65

66

66

67

69

69

70

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PART I

Forward Looking Statements

This Annual Report on Form 1 0-K contains certain “forward-looking statements” within the meaning of the Private Securities Litigation 
Reform Act of 1 995. These forward-looking statements involve certain known and unknown risks, uncertainties and other factors, 
many of which are beyond our control, and are not limited to those discussed in Item 1 A, “Risk Factors.” All statements that do not 
relate to historical or current facts are forward-looking statements. These statements may include words such as “anticipate,” 
“estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any 
discussion of future operating or financial performance. In particular, these include statements relating to present or anticipated 
products and markets, future revenues, capital expenditures, expansion plans, future financing and liquidity, personnel, and other 
statements regarding matters that are not historical facts or statements of current condition.

Any or all forward-looking statements contained within this Annual Report on Form 1 0-K may turn out to be wrong. They can be 
affected by inaccurate assumptions we might make, or by known or unknown risks and uncertainties. Many factors mentioned in the 
discussion below will be important in determining future results. Consequently, we cannot guarantee any forward-looking statements. 
Actual future results may vary materially.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events 
or otherwise, except as required by law. You are advised, however, to consult any further disclosures we make on related subjects in 
our filings with the U.S. Securities and Exchange Commission (SEC).

Item 1 . Business.

Overview
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, investment management and investment operations 
solutions. We help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth 
by providing comprehensive, innovative, investment and investment-business solutions. As of December 31 , 201 4, through its 
subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $625.4 billion in mutual 
fund and pooled or separately managed assets, including $252.8 billion in assets under management and $372.6 billion in client 
assets under administration. Our affiliate, LSV Asset Management (LSV), manages $82.7 billion of assets which are included as assets 
under management.

Our investment management business solutions include:
•  Investment processing outsourcing solutions for providers of institutional and private-client wealth management services, including 

banks, trust companies, independent wealth advisers and other financial services firms;

•  Investment management solutions for institutional investors, including retirement plan sponsors, not-for-profit organizations and 

affluent individual investors; and

•  Investment operations outsourcing solutions for investment management firms, banks and investment companies that sponsor and 

distribute mutual funds, hedge funds and alternative investments.

General Development of the Business
For over 45 years, SEI has been a leading provider of wealth management business solutions for the financial services industry.

We began doing business in 1 968 by providing computer-based training simulations for bank loan officers. We developed an 
investment accounting system for bank trust departments in 1 972 and became a leading provider of investment-processing 
outsourcing services to banks and trust institutions in the United States. Later, we broadened these outsourcing services and began 
offering bank clients a family of mutual funds, as well as investment-operations outsourcing services. We became a public company  
in 1 981 .

We began to adapt these solutions, and develop new investment management solutions, for selected global markets in the 1 990s, 
including: investment advisors, retirement plan sponsors and institutional investors, asset management distribution firms, investment 
managers and affluent individual investors. Today, we serve approximately 7,300 clients in the United States, Canada, the United 
Kingdom, continental Europe, South Africa and East Asia.

In each of these markets, we have combined our core competencies — investment processing, investment management and 
investment operations — to deliver broader and more strategic solutions for clients and markets. Today, we offer a global wealth 
platform and investment services for private banks and wealth services firms; a complete life and wealth platform for operating an 

2

investment advisory business; a comprehensive fiduciary management solution for retirement plan sponsors and institutional 
investors; a total operational outsourcing solution for investment managers and a complete life and wealth solution for ultra-high-net-
worth families.

Strategy
We seek to achieve growth in earnings and shareholder value by strengthening our position as a provider of global investment 
management solutions. To achieve this objective, we have implemented these strategies:
•  Create broader solutions for wealth service firms. Banks, investment managers and financial advisors seek to enter new markets, 
expand their service offerings, provide a differentiated experience to their clients, improve efficiencies, reduce risks and better 
manage their businesses. We offer business solutions integrating technology, operating processes and financial products designed 
to help these institutions better serve their clients and provide opportunities to improve their business success.

•  Help institutional investors manage retirement plans and operating capital. Retirement plan sponsors, not-for-profit 

organizations and other institutional investors strive to meet their fiduciary obligations and financial objectives while reducing 
business risk. We deliver customized investment management solutions, as part of a complete solution offering, that enable 
investors to make better decisions about their investments and to manage their assets more effectively.

•  Help affluent individual investors manage their life and wealth goals. These investors demand a holistic wealth management 

experience that focuses on their life goals and provides them with an integrated array of financial services that includes 
substantially more than traditional wealth management offerings. We help these investors identify their goals and offer 
comprehensive life and wealth advisory services including life planning, investments and other financial services.

•  Expand globally. Global markets are large and present significant opportunities for growth. We have evolved U.S. business models 
for the global wealth management marketplace, focusing on the needs of institutional investors, private banks, independent wealth 
advisers, investment managers, investment advisors and affluent individual investors.

Fundamental Principles
We are guided by these fundamental principles in managing the business and adopting these growth strategies:
•  Achieve growth in revenue and earnings. We seek to grow the business by providing additional services to clients, adding new 

clients, introducing new products and adapting products for new markets.

•  Forge long-term client relationships. We strive to achieve high levels of customer satisfaction and to forge close and long lasting 

client relationships. We believe these relationships enable us to market additional services and acquire knowledge and insights that 
fuel the product development process.

•  Invest in product development. We continually enhance products and services to keep pace with industry developments, 
regulatory requirements and the emerging needs of markets and clients. We believe ongoing investments in research and 
development give us a sustainable, competitive advantage in our markets.

•  Maintain financial strength. We adopt business models that generate recurring revenues and positive cash flows. Predictable  
cash flows serve as a source of funds for continuing operations, investments in new products, common stock repurchases and 
dividend payments.

•  Leverage investments across the business. We create scalable, enterprise-wide solutions designed to serve the needs of 

multiple markets, potentially offering operating efficiencies that can benefit corporate profitability.

•  Create value for shareholders. The objective of achieving long-term sustainable growth in revenues and earnings strongly 

influences the management of the business. This philosophy guides corporate management practices, strategic planning activities 
and employee compensation practices.

Business Solutions

Investment Processing
Investment processing solutions consist of application and business process outsourcing services, professional services and 
transaction-based services. Clients include providers of institutional and private client wealth management services, including banks, 
trust companies, independent wealth advisers and other financial services firms. We also deliver these solutions, combined with our 
investment management programs, to investment advisors and other financial services firms that provide wealth management 
services to their advisory clients.

Our investment processing solutions are delivered through two platforms: TRUST 3000® and the SEI Wealth PlatformSM (the SEI Wealth 
Platform or the Platform). We own, maintain and operate the software applications and information processing facilities for all of our 
investment processing solutions. Clients access our solutions remotely while fully supported by our data center.

TRUST 3000 is a comprehensive trust and investment accounting system that provides securities processing and investment 
accounting for all types of domestic and global securities, and support for multiple account types, including personal trust, corporate 
trust, institutional trust and non-trust investment accounts.

3

 
The SEI Wealth Platform is a next-generation solution that provides a global, unified and scalable platform for operating a wealth 
management business. This comprehensive solution includes investment processing and infrastructure services, and advanced 
capabilities to support wealth advisory, asset management, and wealth administration functions. The Platform provides global  
wealth management capabilities including a 24/7 operating model, global securities processing, and multi-currency accounting and 
reporting. Built around a client-centric relationship model, the Platform has an open architecture and supports workflow management 
and straight-through processing. We began delivering the SEI Wealth Platform to private banks and independent wealth advisers in 
the United Kingdom in 2007. Since then, we have signed 20 independent wealth advisors and other wealth managers in the United 
Kingdom and signed 1 0 banks in the United States. We have also converted select groups of existing investment advisor clients in the 
United States.

Investment processing revenues are earned as monthly fees for contracted services including software licenses. Information 
processing and investment operations revenues are earned based upon the type and number of investor accounts serviced or as  
a percentage of the market value of the clients’ assets processed. These revenues are recognized in Information processing and 
software servicing fees on the accompanying Consolidated Statements of Operations.

Professional services revenues are earned from contracted, project-oriented services, including client implementations, and are 
recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Transaction-based revenues are earned from trade execution services and are recognized as Transaction-based and trade execution 
fees on the accompanying Consolidated Statements of Operations.

Investment Management Programs
Investment management programs consist of money market, fixed-income and equity mutual funds, collective investment products, 
alternative investment portfolios and separately managed accounts. We serve as the sponsor, administrator and investment advisor 
for many of these products. We distribute these programs through investment advisory firms, including investment advisors and 
banks, and directly to institutional and individual investors.

We have expanded these investment management programs to include other consultative, operational and technology components, 
and have created comprehensive solutions tailored to the needs of a specific market. These components may include investment 
strategies, consulting services, administrative and processing services and technology tools.

Investors in our investment programs typically follow an investment strategy constructed according to our disciplined investment 
process and invest in a globally diversified portfolio that consists of multiple asset classes and investment styles. Our investment 
process is based on five principles: asset allocation and appropriate diversification, both of which are important to investment 
performance; a portfolio design process that identifies the drivers of investment returns for each asset class; manager selection, 
where we act as a manager-of-managers, selecting style-specific managers from a global network of money managers; a portfolio 
construction process implemented through selected managers, and diversified among asset classes and drivers of investment 
returns; and risk management processes that monitor portfolios to ensure risk objectives are met.

As of December 31 , 201 4, SEI managed $1 70.1  billion in assets including: $1 36.1  billion invested in fixed-income and equity funds  
and separately managed account programs; $1 3.0 billion invested in liquidity or money market funds; and $21 .0 billion invested in 
collective trust fund programs. An additional $82.7 billion in assets is managed by our unconsolidated affiliate LSV, a registered 
investment advisor that specializes in a value equity management style for their clients.

Revenues from investment management programs are primarily earned as a percentage of net assets under management. These 
revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements  
of Operations. Our interest in the earnings of LSV is recognized in Equity in earnings of unconsolidated affiliates on the accompanying 
Consolidated Statements of Operations.

Investment Operations
Investment operations outsourcing solutions consist of accounting and administration services, and distribution support services.  
We deliver these solutions to investment management firms that offer traditional and alternative products. We support traditional 
managers who advise a variety of investment products including mutual funds, UCITS schemes, collective investment trusts (CITs), 
exchange-traded funds (ETFs), institutional accounts and separately managed accounts. We also provide comprehensive solutions  
to investment managers worldwide that sponsor and distribute alternative investments such as hedge funds, funds of hedge funds, 
private equity funds and real estate funds, across both registered and partnership structures.

Accounting and administration services include account and fund administration, investment portfolio and fund accounting; cash 
administration and treasury services; trade capture, settlement and reconciliation; trustee and custodial services; legal, audit and tax 
support; and investor services. Distribution support services may include access to distribution platforms and market and industry 

4

analyses to identify specific product distribution opportunities. These solutions are delivered by utilizing a highly integrated, robust 
and scalable technology platform adapted to fit the specific business needs of our investment manager clients.

As of December 31 , 201 4, we administered $372.6 billion in client assets for traditional and alternative investment fund products, 
including mutual funds, hedge funds and private equity funds. Revenues from these products are primarily earned as a percentage  
of net assets under administration.

Revenues for the processing of institutional separate accounts and separately managed accounts are generally earned on the number 
of investor accounts serviced. Assets associated with this separate account processing are not included in reported assets under 
administration. Both revenue categories are recognized in Asset management, administration and distribution fees on the 
accompanying Consolidated Statements of Operations.

Business Segments
Business segments are generally organized around our target markets. Financial information about each business segment is 
contained in Note 1 3 to the Consolidated Financial Statements. Our business segments are:
•  Private Banks — provides investment processing and investment management programs to banks and trust institutions, 

independent wealth advisers and financial advisors worldwide;

•  Investment Advisors — provides investment management programs to affluent investors through a network of independent 

registered investment advisors, financial planners and other investment professionals in the United States;

•  Institutional Investors — provides investment management programs and administrative outsourcing solutions to retirement plan 

sponsors, hospitals and not-for-profit organizations worldwide;

•  Investment Managers — provides investment operations outsourcing solutions to fund companies, banking institutions and both 

traditional and non-traditional investment managers worldwide; and

•  Investments in New Businesses — focuses on providing investment management programs to ultra-high-net-worth families 
residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and 
conducting other research and development activities.

The percentage of consolidated revenues generated by each business segment for the last three years was:

Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Investments in New Businesses

201 4

35 %
22 %
22 %
20 %
1 %
100 %

201 3

201 2

35 %
21 %
23 %
20 %
1 %
1 00 %

37 %
20 %
23 %
1 9 %
1 %
1 00 %

Private Banks
The Private Banks segment delivers a comprehensive outsourcing solution integrating investment processing services, investment 
management and distribution programs, and business expertise to banks and trust institutions, independent wealth advisers and 
financial advisors worldwide.

We offer TRUST 3000 investment processing as an application solution or as a business processing solution. Application solution 
clients outsource investment processing technology software services and information processing to SEI, but retain responsibility for 
back-office investment operations. Business processing solution clients outsource investment operations in addition to application 
services. Investment operations includes custody and safekeeping of certain assets, income collection, securities settlement and 
other related trust activities.

Contracts with TRUST 3000 clients have initial terms that are generally three to seven years in length. At December 31 , 201 4, we had 
significant relationships with 1 01  bank and trust institutions in the United States. Our principal competitors for this business are: 
Fidelity National Information Services, Inc. (FIS), SunGard Data Systems Inc., State Street Corporation, Fi-Tek LLC, Charles Schwab & 
Co., Inc. and Fidelity Investments. Many large financial institutions develop, operate and maintain proprietary investment and trust 
accounting systems. We consider these “in-house” solutions to be a form of competition.

Our marketing efforts in this segment are focused on the SEI Wealth Platform, as we now have an installed base of operating  
clients in both the United Kingdom and the United States. We believe the Platform addresses the needs of large global wealth 
managers that seek to engage their clients and investors in an increasingly digital world, address the growing complexity of their 
operations and legacy platforms, comply with complex regulations, and make more effective use of capital by outsourcing wealth  
management services.

5

 
We currently offer the SEI Wealth Platform as a business processing solution. New Platform clients undergo a business transformation 
process that includes either a conversion of existing client assets, or a business transition process which funds new client assets onto 
the Platform as the client grows their business with a contractual minimum fee in place. We begin to earn processing revenues when 
the client completes the transformation process and commences operation.

In 201 5, we expect to continue our focus on capturing a large U.S. bank as an early adopter of the SEI Wealth Platform while growing 
current clients on the Platform and implementing signed clients. We will also continue to manage our current TRUST 3000 
relationships toward eventual conversion to the Platform.

Contracts with SEI Wealth Platform clients have initial terms that are generally five to seven years in length. At December 31 , 201 4, we 
had significant relationships with 30 banks, independent wealth advisers and other wealth managers located in the United Kingdom 
and the United States. Our principal competitors for this business, in addition to those named above, are: Pershing LLC, FNZ UK Ltd., 
Temenos Group AG, Avaloq, SS&C Technologies, Fiserv, Inc. and smaller technology firms. We also consider “in-house” solutions to be 
a form of competition.

This segment also offers investment management and distribution programs for banks, wealth managers and other financial services 
intermediaries. These programs start with SEI’s standard investment solutions, strategies, funds, and investment services. We can 
also deliver customized solutions including asset management strategies, as well as investment manager and portfolio research 
services. Increasingly, asset management distributors with established platforms are seeking to grow their businesses by offering 
broader investment solutions while outsourcing non-client facing investment services activities. We believe we offer our distribution 
partners a cost-effective way to grow their businesses and offer their investors differentiated investment choices, such as SEI’s 
goal-based investing solution. In 201 5, we expect to drive continued momentum in this solution.

At December 31 , 201 4, we had approximately 330 asset management distribution clients. We also had single-product relationships 
with approximately 80 additional banks and trust institutions. The principal competitors for this business are: Federated Investors, 
Inc., Russell Investment Group, Fidelity Investments, Franklin Templeton Investments, discretionary portfolio managers and various 
multi-manager investment programs offered by other firms. We also consider “in-house” internal asset management capabilities to be 
a form of competition.

Investment Advisors
The Investment Advisors segment offers investment management solutions throughout the United States to registered investment 
advisors, financial planners and life insurance agents, many of whom are registered with independent broker-dealers. These 
investment management solutions include our investment management programs and back-office investment processing outsourcing 
services and are usually offered on a bundled basis. We also help advisors manage and grow their businesses by giving them access 
to our marketing support programs, business assessment assistance and recommended management practices. We believe our 
solutions help investment advisors reduce risk, improve quality and gain operational efficiency to devote more of their resources to 
servicing their clients and acquiring new clients.

Advisors are responsible for the investor relationship which includes creating financial plans, implementing investment strategies and 
educating and servicing their customers. Advisors may customize portfolios to include separate account managers provided through 
our programs as well as SEI-sponsored mutual funds. Our wealth and investment programs are designed to be attractive to affluent or 
high-net-worth individual investors with over $250 thousand of investable assets and small to medium-sized institutional plans.

We continually enhance our offering to meet the emerging needs of our advisors and their end clients. We anticipate the enhanced 
service offerings enabled through the SEI Wealth Platform will provide a more diverse range of back-office, front-office and client-
facing investment processing outsourcing services and investment management solutions. In 201 5, we expect to convert additional 
advisors onto the Platform, continue our focus on recruiting new advisors and improving net cash flows.

We estimate we have business relationships with over 6,1 00 financial advisors at December 31 , 201 4. Our definition of a client for this 
segment includes financial advisors who have exceeded a minimal level of customer assets invested in our investment products. With 
the growth of our business, the minimal level of customer assets which defines a “business relationship” is adjusted from time to time. 
Our business is primarily based on approximately 1 ,550 investment advisors who, at December 31 , 201 4, had at least $5.0 million 
each in customer assets invested in our mutual funds and separately managed accounts. Revenues are earned largely as a 
percentage of average assets under management.

The principal competition for our investment management products is from other money managers, other turnkey asset management 
providers, mutual fund companies, custody service providers and the proprietary investment management programs of broker 
dealers. In the advisor distributor channel, the principal competitors include AssetMark Investment Services Inc., Brinker Capital, 
EnvestNet Asset Management, Inc., Fidelity Investments, Lockwood Advisors, Inc., a subsidiary of The Bank of New York Mellon, 
Charles Schwab & Co., Inc., and other broker-dealers. As we introduce the Platform, we expect to more directly compete with custody 
service providers.

6

Institutional Investors
The Institutional Investors segment offers fiduciary management solutions for retirement plan sponsors, healthcare systems and 
not-for-profit organizations globally. Clients can outsource their investment management needs through an open architecture platform 
supported with administrative services for defined benefit plans, defined contribution plans, endowments, foundations and balance 
sheet assets.

The fiduciary management program provides an investment strategy customized to the client’s financial status and goals, while 
integrating a multimanager investment process, plan administration services and advisory services. Plan administration services 
include trustee, custodial, and benefit payment services. Advisory services include asset liability modeling and customization of an 
asset allocation plan that is designed to meet long-term objectives.

By outsourcing retirement plan services, we believe clients benefit from an investment approach built around a strategy designed  
to meet the client’s long-term business and plan objectives and a process that alleviates the responsibility of manager selection, 
ongoing monitoring and termination. This approach is designed to reduce business risk, provide ongoing due diligence and increase 
operational efficiency. Nonprofit organizations can manage volatility through more diversified portfolios and focus more resources on 
achieving their overall mission. Healthcare organizations benefit from customized asset allocations that help provide improved 
balance sheet protection and overall financial risk management.

In 201 5, we expect to continue to build a globally-diversified institutional client base, provide our clients with value-added advice  
and discretionary services, and place increased emphasis on defined contribution sales opportunities.

Fees are primarily earned as a percentage of average assets under management. At December 31 , 201 4, we had relationships with 
approximately 480 investment management clients. The principal competitors for this segment are Mercer, Aon Hewitt, Towers 
Watson, Russell Investments, Northern Trust Company and other investment consultants.

Investment Managers
The Investment Managers segment supplies investment organizations of all types with the advanced operating infrastructure they 
need to be competitive while navigating a host of business and regulatory challenges. Our comprehensive global operations platform 
provides asset managers with customized and integrated capabilities in the areas of fund administration, fund accounting, data and 
information management, risk management and compliance support.

We work with a diverse and sophisticated group of traditional, alternative and sovereign wealth managers, including close to 
one-third of the top 1 00 managers worldwide. Clients choose our full-service offering because of its flexibility, speed and ability to 
support their diverse business needs across multiple product types and structures, investment strategies and asset classes. Our 
investment manager clients offer a variety of packaging types, including hedge funds, private equity funds, mutual funds, separate 
accounts, ETFs, UCITS, unit trusts and closed end funds. For clients who desire to manage assets within a collective investment  
trust, we offer trustee and investment management services in addition to the administration services described above. Because our 
operational platform enables managers to view their business in such a comprehensive and integrated way, it gives them more control 
over their business risks and results.

Over the past few years, investors have faced multiple market crises and rising volatility. Investment managers have responded with  
a range of innovative products designed to better manage volatility and downside risk, and offer alternatives to the pure long-only 
investing strategy historically used in traditional markets. The clear line that had once separated traditional and alternative investment 
products continues to blur as traditional managers utilize tools historically used by alternative managers, while alternative managers 
increasingly are launching registered products and taking advantage of broader, and different, distribution channels. Additionally, as 
competitiveness will increasingly be based on capabilities other than just investment expertise, we have offered managers solutions 
that help them gain scale and efficiency, run their businesses more intelligently, and be more responsive to investor needs. We also 
continually enhance our solutions to anticipate and adapt to economic, regulatory and industry changes.

In 201 5, we expect to continue our efforts to add new asset managers, grow our existing relationships, expand into new markets and 
further develop our solutions and global operations platform.

Contracts for our fund administration outsourcing services generally have terms ranging from three to five years. Fees are primarily 
earned as a percentage of average assets under management and administration. A portion of the revenues for this segment are 
earned as account servicing fees. At December 31 , 201 4, we had relationships with approximately 248 investment management 
companies and alternative investment managers. Our competitors vary according to the asset class or solution provided and include 
large global custodian banks such as State Street, BNY Mellon and Northern Trust as well as independently owned firms such as  
SS&C Technologies and Citco.

7

 
Investments in New Businesses
The Investments in New Businesses segment represents other business ventures or research and development activities intended to 
expand our solutions to new or existing markets including ultra-high-net-worth families who reside in the United States. This segment 
also includes the costs associated with the business development in the Middle East through our Dubai office, the development of 
new internet-based investment services and mobile technologies and the integration of specific front office client management 
technology purchased in 201 2. The family wealth management solution offers flexible family-office type services through a highly 
personalized solution while utilizing the Manager-of-Managers investment process.

The principal competitors for the family wealth solution are diversified financial services providers focused on the ultra-high-net- 
worth market.

Research and Development
We are devoting significant resources to research and development, including expenditures for new technology platforms, 
enhancements to existing technology platforms and new investment products and services. We spent approximately $98.6 million in 
201 4, $91 .8 million in 201 3, and $79.6 million in 201 2, of which we capitalized approximately $34.9 million in 201 4, $30.7 million in 
201 3 and $31 .0 million in 201 2 relating to the development of new technology platforms. The amount of research and development 
expenditures capitalized in 201 3 is exclusive of a one-time contractual payment of $8.8 million to exercise a conversion option in lieu 
of periodic fee payments pertaining to a software license for functionality utilized by the SEI Wealth Platform. Total research and 
development expenditures as a percentage of revenues were 7.8 percent in 201 4, 8.2 percent in 201 3 and 8.0 percent in 201 2.  
Our research and development expenditures are included in Compensation, benefits and other personnel and Consulting, outsourcing 
and professional fees on the accompanying Consolidated Statements of Operations.

The majority of our research and development spending is related to building the SEI Wealth Platform, which combines business 
service processing with asset management and distribution services. The Platform offers to our customers a client-centric, rather than 
an account-centric, process with model-based portfolio management services through a single platform. The Platform utilizes our 
proprietary applications with those built by third-party providers and integrates them into a single technology solution, providing a 
common user experience. This integration supports straight-through business processing and enables the transformation of our 
clients’ trust services from operational investment processing services to client value-added services.

The solution will serve markets in the United States, United Kingdom, Canada and continental European markets. The Platform 
provides the technology infrastructure for the business solutions now being marketed to private banks and independent wealth 
adviser organizations in the United States and the United Kingdom. We believe the demand for the advanced capabilities of the 
Platform will enable us to significantly extend, expand and improve the services we offer in the Investment Advisors segment.

The Platform will eventually be used at some level by most of our business segments representing a significant upgrade to our 
infrastructure. The Platform will enable SEI and our clients to manage the entire lifecycle of wealth services through a single solution. 
The workflow automation, firm’s business rules and straight through processing to the street will dramatically change the client 
experience, help firms manage risk and allow for total transparency.

Marketing and Sales
Our business solutions are directly marketed to potential clients in our target markets. At January 30, 201 5, we employed 1 04 sales 
representatives who operate from offices located throughout the United States, Canada, the United Kingdom, continental Europe, 
South Africa, Asia and other locations.

Customers
In 201 4, no single customer accounted for more than ten percent of revenues in any business segment.

Personnel
At January 30, 201 5, we had 2,772 full-time and 52 part-time employees. Employee unions do not represent any of our employees. 
Management considers employee relations to be generally good.

Regulatory Considerations
Our principal, regulated wholly-owned subsidiaries are SEI Investments Distribution Co., or SIDCO, SEI Investments Management 
Corporation, or SIMC, SEI Private Trust Company, or SPTC, SEI Trust Company, or STC, and SEI Investments (Europe) Limited, or SIEL. 
SIDCO is a broker-dealer registered with the SEC under the Securities and Exchange Act of 1 934 and is a member of the Financial 
Industry Regulatory Authority, Inc. (FINRA). SIMC is an investment advisor registered with the SEC under the Investment Advisers Act 
of 1 940 and with the Commodity Futures Trading Commission (CFTC) under the Commodity Futures Exchange Act. SPTC is a limited 
purpose federal thrift chartered and regulated by the Office of the Comptroller of the Currency. STC is a Pennsylvania trust company, 
regulated by the Pennsylvania Department of Banking and Securities. SIEL is an investment manager and financial institution subject 

8

to regulation by the Financial Conduct Authority of the United Kingdom. In addition, various SEI subsidiaries are subject to the 
jurisdiction of regulatory authorities in Canada, the Republic of Ireland and other foreign countries. The Company has a minority 
ownership interest of approximately 39.3 percent 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 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 and fines 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 anti-money laundering and financial transparency laws and requires 
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.

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 legislative activity in the United States (including the Dodd-Frank Wall Street Reform and Consumer Protection Act  
of 201 0 and attendant rule making activities) 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, review our compliance procedures, solution and service offerings, and business operations, and make changes as we 
deem necessary. These additional activities and required changes may result in increased expense or may reduce revenues.

Our bank clients are subject to supervision by federal and state banking 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 1 A “Risk Factors” for a description of the risks that proposed 
regulatory changes may present for our business.

Available Information
We maintain a website at www.seic.com and make available free of charge through the Investors section of this website our Annual 
Reports on Form 1 0-K, Quarterly Reports on Form 1 0-Q, Current Reports on Form 8-K and all amendments to those reports filed or 
furnished pursuant to Section 1 3(a) or 1 5(d) of the Exchange Act as soon as reasonably practicable after we electronically file such 

9

 
material with, or furnish it to, the SEC. We include our website in this Annual Report on Form 1 0-K only as an inactive textual reference 
and do not intend it to be an active link to our website. The material on our website is not part of this Annual Report on Form 1 0-K.

Item 1 A. Risk Factors.

We believe that the risks and uncertainties described below are those that impose the greatest threat to the sustainability of our 
business. However, there are other risks and uncertainties that exist that may be unknown to us or, in the present opinion of our 
management, do not currently pose a material risk of harm to us. The risk and uncertainties facing our business, including those 
described below, could materially adversely affect our business, results of operations, financial condition and liquidity.

Our revenues and earnings are affected by changes in capital markets. A majority of our revenues are earned based on the value 
of assets invested in investment products that we manage or administer. Significant fluctuations in securities prices may materially 
affect the value of these assets and may also influence an investor’s decision to invest in and maintain an investment in a mutual fund 
or other investment product. As a result, our revenues and earnings derived from assets under management and administration could 
be adversely affected.

We are dependent on third party pricing services for the valuation of securities invested in our investment products. The 
majority of the securities held by our investment products are valued using quoted prices from active markets gathered by external 
third party pricing services. Securities for which market prices are not readily available are valued in accordance with procedures 
applicable to that investment product. These procedures may utilize unobservable inputs that are not gathered from any active 
markets and involve considerable judgment. If these valuations prove to be inaccurate, our revenues and earnings from assets under 
management could be adversely affected.

We are exposed to product development risk. We continually strive to increase revenues and meet our customers’ needs by 
introducing new products and services. As a result, we are subject to product development risk, which may result in loss if we are 
unable to develop and deliver products to our target markets that address our clients’ needs and that are developed on a timely  
basis and reflect an attractive value proposition. The majority of our product development risk pertains to the SEI Wealth Platform,  
our newest technology that serves U.K., European and U.S. clients. It is designed to drive our entry into global private bank and  
wealth services markets and expand our U.S. market opportunity, improve client experience capabilities and strengthen operating 
efficiencies by providing straight through business processing solutions and transform the front, middle and back office operations 
that exist today. New product development is primarily for the purpose of enhancing our competitive position in the industry. In the 
event that we fail to develop products or services at an acceptable cost or on a timely basis or if we fail to deliver products and 
services which are of sound, economic value to our clients and our target markets, or an inability to support the product in a cost-
effective and compliant manner, we may recognize significant financial losses.

We are dependent upon third-party service providers in our operations. We utilize numerous third-party service providers located 
in the United States, the United Kingdom and other offshore locations in our operations, in the development of new products, and in 
the maintenance of our proprietary systems. A failure by a third-party service provider could expose us to an inability to provide 
contractual services to our clients in a timely basis. Additionally, if a third-party service provider is unable to provide these services, 
we may incur significant costs to either internalize some of these services or find a suitable alternative.

We serve as the investment advisor for many of the products offered through our investment management programs and utilize 
the services of investment sub-advisers to manage the majority of these assets. A failure in the performance of our due diligence 
processes and controls related to the supervision and oversight of these firms in detecting and addressing conflicts of interest, 
fraudulent activity, noncompliance with relevant securities and other laws could cause us to suffer financial loss, regulatory sanctions 
or damage to our reputation.

We are exposed to operational risks. Operational risk generally refers to the risk of loss resulting from our operations, including, but 
not limited to, improper or unauthorized execution and processing of transactions, deficiencies in our operating systems, inefficiencies 
in our operational business units, business disruptions and inadequacies or breaches in our internal control processes. We operate 
different businesses in diverse markets and are reliant on the ability of our employees and systems to process large volumes of 
transactions often within short time frames. In the event of a breakdown or improper operation of systems, human error or improper 
action by employees, we could suffer financial loss, regulatory sanctions or damage to our reputation. In order to mitigate and control 
operational risk, we continue to enhance policies and procedures that are designed to identify and manage operational risk.

We are exposed to systems and technology risks. Through our proprietary systems, we maintain and process data for our clients 
that is critical to their business operations. An unanticipated interruption of service may have significant ramifications, such as lost 
data, damaged software codes, or inaccurate processing of transactions. As a result, the costs necessary to rectify these problems 
may be substantial. Our continued success also depends in part on our ability to protect our proprietary technology and solutions and 
to defend against infringement claims of others. We primarily rely upon trade secret law, software security measures, copyrights and 

1 0

confidentiality restrictions in contracts with employees, vendors and customers. Our industry is characterized by the existence of a 
large number of trade secrets, copyrights and the rapid issuance of patents, as well as frequent litigation based on allegations of 
infringement or other violations of intellectual property rights of others. A successful assertion by others of infringement claims or a 
failure to maintain the confidentiality and exclusivity of our intellectual property may have a material adverse effect on our business 
and financial results.

We are exposed to data and cyber security risks. A failure to safeguard the integrity and confidentiality of client data and our 
proprietary data from the infiltration by an unauthorized user may lead to modifications or theft of critical and sensitive data pertaining 
to us or our clients. We have established a strategy designed to protect against threats and vulnerabilities containing preventive and 
detective controls including, but not limited to, firewalls, intrusion detection systems, computer forensics, vulnerability scanning, 
server hardening, penetration testing, anti-virus software, data leak prevention, encryption and centralized event correlation 
monitoring. Despite our efforts to ensure the integrity of our proprietary systems and information, it is possible that we may not be 
able to anticipate or to implement effective preventive measures against all cyber threats, especially because the methods used 
change frequently or are not recognized until launched. Additionally, security breaches or disruptions of our proprietary systems,  
or those of our service providers, could impact our ability to provide services to our clients, which could expose us to liability for 
damages which may not be covered by insurance, result in the loss of customer business, damage our reputation, subject us to 
regulatory scrutiny or expose us to civil litigation. In addition, the failure to upgrade or maintain our computer systems, software and 
networks, as necessary, could also make us susceptible to breaches and unauthorized access and misuse. We may be required to 
expend significant additional resources to modify, investigate or remediate vulnerabilities or other exposures arising from data and 
cyber security risks. Furthermore, even if not directed at us specifically, attacks on other financial institutions could disrupt the overall 
functioning of the financial system. As a result of the importance of communications and information systems to our business, we 
could also be adversely affected if attacks affecting our third party service providers impair our ability to process transactions and 
communicate with clients and counterparties.

Poor investment performance may affect our revenues and earnings. Our ability to maintain our existing clients and attract new 
clients may be negatively affected if the performance of our mutual funds and other investment products, relative to market conditions 
and other comparable competitive investment products, is lower. Investors may decide to place their investable funds elsewhere 
which would reduce the amount of assets we manage resulting in a decrease in our revenues and earnings.

Our earnings and cashflows are affected by the performance of LSV. We maintain a minority ownership interest in LSV which is  
a significant contributor to our earnings. We also receive partnership distribution payments from LSV on a quarterly basis which 
contribute to our operating cashflows. LSV is a registered investment advisor that provides investment advisory services to 
institutions, including pension plans and investment companies. LSV is a value-oriented, contrarian money manager offering a 
deep-value investment alternative utilizing a proprietary equity investment model to identify securities generally considered to be out 
of favor by the market. Volatility in the capital markets or poor investment performance on the part of LSV, on a relative basis or an 
absolute basis, could result in a significant reduction in their assets under management and revenues and a reduction in performance 
fees. Consequently, LSV’s contribution to our earnings through our minority ownership as well as to our operating cashflows through 
LSV’s partnership distribution payments could be adversely affected.

In addition, we provided an unsecured guaranty for $45.0 million of the obligations of LSV Employee Group III in connection with  
their purchase of a partnership interest in LSV, of which $38.7 million remains outstanding at December 31 , 201 4. The ability of  
LSV Employee Group III to successfully repay their loan obligation subject to our guaranty is dependent upon the level of quarterly 
partnership distribution payments from LSV. In the event that LSV Employee Group III does not receive sufficient partnership 
distribution payments from LSV or is otherwise unable to meet all of their financial obligations regarding the loan, the lenders have 
the right to seek payment from us for the outstanding obligations. The repayment of such obligations related to our guaranty 
agreement may negatively affect our operating results, liquidity and financial condition.

Our Company and our clients are subject to extensive governmental regulation. Our various business activities are conducted 
through entities which may be registered with or regulated by the SEC and CFTC as an investment advisor, a broker-dealer, a transfer 
agent, or an investment company, and with federal or state banking authorities as a trust company. Our broker-dealer is also a 
member of the Financial Industry Regulatory Authority and is subject to its rules and oversight. In addition, some of our foreign 
subsidiaries are registered with, and subject to the oversight of, regulatory authorities primarily in the United Kingdom, the Republic  
of Ireland and Canada. Many of our clients are subject to substantial regulation by federal and state banking, securities or insurance 
authorities or the Department of Labor. Compliance with existing and future regulations, responding to and complying with recent 
regulatory activity affecting broker-dealers, investment advisors, investment companies and their service providers and financial 
institutions, and examination or other supervisory activities of our regulators or of the regulators of our clients, could have a 
significant impact on our operations or business or our ability to provide certain products or services.

1 1

 
We offer investment and banking products 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 products could 
lead to a reduction in sales of these products or an increase in the cost of providing these products.

The fees and assessments imposed on our regulated subsidiaries by federal, state and foreign regulatory authorities could have a 
significant impact on us. In the current regulatory environment, the frequency and scope of regulatory reform may lead to an increase 
in fees and assessments resulting in increased expense, or an increase or change in regulatory requirements which could affect our 
operations and business.

We are subject to litigation and regulatory examinations and investigations. The financial services industry faces substantial 
regulatory risks and litigation. Like many firms operating within the financial services industry, we are experiencing a difficult 
regulatory environment across our markets. Our current scale and reach as a provider to the financial services industry; 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, have made this an increasingly challenging and costly 
regulatory environment in which to operate. These examinations or investigations could result in the identification of matters that  
may require remediation activities or enforcement proceedings by the regulator. The direct and indirect costs of responding to these 
examinations, or of defending ourselves in any litigation could be significant. Additionally, actions brought against us may result in 
settlements, awards, injunctions, fines and penalties. The outcome of litigation or regulatory action is inherently difficult to predict and 
could have an adverse effect on our ability to offer some of our products and services.

Consolidation within our target markets may affect our business. Merger and acquisition activity between banks and other 
financial institutions could reduce the number of existing and prospective clients or reduce the amount of revenue we receive from 
retained clients. Consolidation activities may also cause larger institutions to internalize some or all of our services. These factors  
may negatively impact our ability to generate future growth in revenues and earnings.

We are dependent upon third party approvals. Many of the investment advisors through which we distribute our investment 
offerings are affiliated with independent broker-dealers or other networks, which have regulatory responsibility for the advisor’s 
practice. As part of the regulatory oversight, these broker-dealers or networks must approve the use of our investment products by 
affiliated advisors within their networks. Failure to receive such approval, or the withdrawal of such approval, could adversely affect 
the marketing of our investment products.

We are subject to financial and non-financial covenants which may restrict our ability to manage liquidity needs.  
Our $300.0 million five-year senior unsecured revolving credit facility (Credit Facility) contains financial and non-financial covenants. 
The non-financial covenants include restrictions on indebtedness, mergers and acquisitions, sale of assets and investments. In the 
event of default, we have restrictions on paying dividends and repurchasing our common stock. We have one financial covenant, the 
Leverage Ratio, which restricts the level of indebtedness we can incur to a maximum of 1 .75 times earnings before interest, taxes, 
depreciation and amortization (EBITDA). We believe our primary risk is with the financial covenant if we were to incur significant 
unexpected losses that would impact the EBITDA calculation. This would increase the Leverage Ratio and restrict the amount we 
could borrow under the Credit Facility. A restriction on our ability to fully utilize our Credit Facility may negatively affect our operating 
results, liquidity and financial condition.

Changes in, or interpretation of, accounting principles could affect our revenues and earnings. We prepare our consolidated 
financial statements in accordance with generally accepted accounting principles. A change in these principles can have a significant 
effect on our reported results and may even retrospectively affect previously reported results.

Changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates. Unanticipated changes 
in our tax rates could affect our future results of operations. Our future effective tax rates could be adversely affected by changes in 
tax laws or the interpretation of tax laws. We are subject to possible examinations of our income tax returns by the Internal Revenue 
Service and state and foreign tax authorities. We regularly assess the likelihood of outcomes resulting from these examinations to 
determine the adequacy of our provision for income taxes, however, there can be no assurance that the final determination of any 
examination will not have an adverse effect on our operating results or financial position.

Currency fluctuations could negatively affect our future revenues and earnings as our business grows globally. We operate and 
invest globally to expand our business into foreign markets. Our foreign subsidiaries use the local currency as the functional currency. 
As these businesses evolve, our exposure to changes in currency exchange rates may increase. Adverse movements in currency 
exchange rates may negatively affect our operating results, liquidity and financial condition.

Changes in interest rates may affect the value of our fixed-income investment securities. We own Government National Mortgage 
Association (GNMA) mortgage-backed securities for the sole purpose of satisfying applicable regulatory requirements imposed on our 
wholly-owned limited purpose federal thrift subsidiary, SPTC. The valuations of these securities are impacted by fluctuations in 

1 2

interest rates. Interest rates during the past several years have remained relatively low. The effect of a rising interest rate environment 
may negatively impact the value of these securities and thereby negatively affect our financial position and earnings.

We rely on our executive officers and senior management. Most of our executive officers and senior management personnel do not 
have employment agreements with us. The loss of these individuals may have a material adverse effect on our future operations.

Item 1 B. Unresolved Staff Comments.

None.

Item 2. Properties.

Our corporate headquarters is located in Oaks, Pennsylvania and consists of nine buildings situated on approximately 90 acres.  
We own and operate the land and buildings, which encompass approximately 524,000 square feet of office space and 34,000 square 
feet of data center space. We lease other offices which aggregate 65,000 square feet. We also own a 3,400 square foot condominium 
that is used for business purposes in New York, New York.

Item 3. Legal Proceedings.

SEI has been named in six lawsuits filed in Louisiana. Five lawsuits were filed in the 1 9th Judicial District Court for the Parish of East 
Baton Rouge. One of the five actions purports to set forth claims on behalf of a class and also names SPTC as a defendant. Two of the 
other actions also name SPTC as a defendant. All five actions name various defendants in addition to SEI, and, in all five actions, the 
plaintiffs purport to bring a cause of action against SEI and/or SPTC under the Louisiana Securities Act. Two of the five actions include 
claims for violations of the Louisiana Racketeering Act and possibly conspiracy. In addition, another group of plaintiffs filed a lawsuit in 
the 23rd Judicial District Court for the Parish of Ascension against SEI and SPTC and other defendants, asserting claims of negligence, 
breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental 
reliance, violations of the Louisiana Securities Act and Louisiana Racketeering Act, and conspiracy. The underlying allegations in all 
actions relate to the purported role of SPTC in providing back-office services to Stanford Trust Company. The petitions allege that SEI 
and SPTC aided and abetted or otherwise participated in the sale of “certificates of deposit” issued by Stanford International Bank.

The case filed in Ascension Parish was removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the 
United States District Court for the Northern District of Texas. The schedule for responding to that petition has not yet been established.

The plaintiffs in two of the cases filed in East Baton Rouge have granted SEI and SPTC an indefinite extension to respond to the petitions.

In a third East Baton Rouge action, brought as a class action, SEI and SPTC filed exceptions, which the Court granted in part, 
dismissing the claims under the Louisiana Unfair Trade Practices Act. Plaintiffs then filed a motion for class certification, and SEI and 
SPTC also filed a motion for summary judgment. The Court deferred the motion for summary judgment, stating that the motion would 
not be set for hearing until after the hearing on class certification. After the Court held a hearing on class certification, it certified a 
class composed of persons who purchased or renewed any Stanford International Bank certificates of deposit (SIB CDs) in Louisiana 
between January 1 , 2007 and February 1 3, 2009 or any person for whom the Stanford Trust Company purchased SIB CDs in Louisiana 
between January 1 , 2007 and February 1 3, 2009. SEI and SPTC filed motions for appeal from the class certification judgments. On 
February 1 , 201 3, plaintiffs filed a motion for Leave to File a First Amended and Restated Class Action Petition in which they asked the 
Court to allow them to amend the petition and add claims against certain of SEI’s insurance carriers. On February 5, 201 3, the Court 
granted two of the motions for appeal and the motion for leave to amend. On February 28, 201 3, SEI responded to the First Amended 
and Restated Class Action Petition by seeking dismissal of the action. On March 1 1 , 201 3, the newly-added insurance carrier 
defendants removed the case to the Middle District of Louisiana. SEI notified the Judicial Panel on Multidistrict Litigation (MDL) of this 
case as a potential tag-along action. Plaintiffs filed a motion to remand the action to state court. On March 25, 201 3, SEI filed a motion 
requesting that the federal court decline to adopt the state court’s order regarding class certification, which the court dismissed 
without prejudice to renew upon a determination of the jurisdictional issue. On August 7, 201 3, the MDL Panel transferred the matter 
against SEI to the Northern District of Texas. On October 1 , 201 4, SEI filed a renewed motion to dismiss in the Northern District of 
Texas, and on October 6, 201 4, the District Court denied plaintiffs’ motion to remand. This case is now pending in the Northern District 
of Texas, and SEI is awaiting a ruling on its motion to dismiss.

In the two other cases filed in East Baton Rouge, brought by the same counsel who filed the class action, virtually all of the litigation to 
date has involved motions practice and appellate litigation regarding the existence of federal subjection matter jurisdiction under the 
federal Securities Litigation Uniform Standards Act (SLUSA). After the matter was removed to the United States District Court for the 
Northern District of Texas, that court dismissed the action under SLUSA. The Court of Appeals for the Fifth Circuit reversed that order, 

1 3

 
and the Supreme Court of the United States affirmed the Court of Appeals judgment on February 26, 201 4. The matter was remanded 
to state court and no material activity has taken place since that date.

While the outcome of this litigation is uncertain given its early phase, SEI and SPTC believe that they have valid defenses to plaintiffs’ 
claims and intend to defend the lawsuits vigorously. Because of the uncertainty of the make-up of the classes, the specific theories of 
liability that may survive a motion for summary judgment or other dispositive motion, the 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, with respect to the foregoing lawsuits.

A lawsuit entitled Steven Curd and Rebel Curd v. SEI Investments Management Corporation was filed against SIMC in the United States 
District Court for the Eastern District of Pennsylvania on December 1 1 , 201 3. On August 28, 201 4, the Court granted SIMC’s motion to 
dismiss the initial complaint in the lawsuit, but also granted plaintiffs leave to amend the complaint. On October 2, 201 4, plaintiffs filed 
an amended complaint. In the amended complaint, SEI Investments Global Funds Services (SGFS) was added as a defendant. The 
plaintiffs bring the case as a shareholder derivative action against SIMC and SGFS on behalf of certain SEI funds. The claims are based 
on Section 36(b) of the Investment Company Act of 1 940, as amended, which allows shareholders of a mutual fund to sue the 
investment adviser of the fund or its affiliates for an alleged breach of fiduciary duty with respect to compensation received by the 
adviser or its affiliates. The plaintiffs have brought the suit against SIMC and SGFS with respect to five specific SEI Funds: the High 
Yield Bond, Tax-Managed Large Cap, and Tax-Managed Small/Mid Cap Funds, each of which is a series of the SEI Institutional 
Managed Trust, the Intermediate Term Municipal Fund, which is a series of the SEI Tax Exempt Trust, and the International Equity Fund, 
which is a series of the SEI Institutional International Trust (the SEI Funds). The plaintiffs seek: (1 ) damages for the SEI Funds in the 
amount of the alleged “excessive” fees earned by SIMC and SGFS beginning from the one year period prior to the filing of the lawsuit, 
plus interest, costs, and fees; (2) orders declaring that SIMC and SGFS allegedly violated Section 36(b) and enjoining SIMC and SGFS 
from further alleged violations; and (3) rescission of SIMC’s and SGFS’s contracts with the funds, and restitution of all allegedly 
excessive fees paid beginning from the one year period prior to the filing of the lawsuit, plus interest, costs, and fees. On November 
24, 201 4, SIMC and SGFS filed a motion to dismiss the amended complaint. The court has not yet ruled on that motion. While the 
outcome of this litigation is uncertain given its early phase, SIMC and SGFS believe that they have valid defenses to plaintiffs’ claims 
and intend to defend the lawsuit vigorously, and SIMC and SGFS are not reasonably able to provide an estimate of the ultimate loss,  
if any, with respect to this lawsuit.

On November 26, 201 4, a Writ of Summons was issued to two of our subsidiaries, SEI Investments — Global Fund Services Limited 
(GFSL) and SEI Investments — Trustee & Custodial Services (Ireland) Limited (T&C), to appear before the Court of First Instance 
Antwerp, Belgium on March 1 1 , 201 5. The plaintiffs in this case allege that through their initial investments in collective investment 
funds domiciled in Netherlands and subsequent transfer of claim rights to a Belgium domiciled partnership, they are beneficial owners 
of a portfolio of life settlement policies (the Portfolio) which lapsed due to a failure to make premium payments. The plaintiffs seek to 
recover jointly and severally from nine defendants including GFSL and T&C, damages of approximately $84 million. GFSL and T&C’s 
involvement in the litigation appears to arise out of their historical provision of administration and custody services respectively, to the 
Strategic Life Settlement Fund PLC, who, together with its managers, appear to be the principal defendants in this claim. While the 
outcome of this action is uncertain given its early phase and the lack of specific theories of liability asserted against GFSL and T&C, 
each of GFSL and T&C believe that they have valid defenses to plaintiffs’ claims and intend to defend the lawsuit vigorously.

Executive Officers of the Registrant
Information about our executive officers is contained in Item 1 0 of this report and is incorporated by reference into this Part I.

Item 4. Mine Safety Disclosures.

None.

1 4

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters 
and Issuer Purchases of Equity Securities.

Price Range of Common Stock and Dividends:
Our common stock is traded on The Nasdaq Global Select Market® (NASDAQ) under the symbol “SEIC.” The following table shows the 
high and low sales prices for our common stock as reported by NASDAQ and the dividends declared on our common stock for the last 
two years. Our Board of Directors intends to declare future dividends on a semiannual basis.

201 4

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

$

High

35.57
33.80
38.1 4
41 .22

Low

Dividends

201 3

$

32.38
29.93
31 .90
32.95

$

— First Quarter

$

0.22

Second Quarter

— Third Quarter

0.24

Fourth Quarter

High

29.22
31 .29
32.64
34.97

Low

Dividends

$

$

23.80
27.08
27.84
30.1 9

—
0.20
—
0.22

According to the records of our transfer agent, there were 332 holders of record of our common stock on January 30, 201 5. Because 
many of such shares are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number 
of stockholders represented by these record holders.

For information on our equity compensation plans, refer to Note 8 to the Consolidated Financial Statements and Item 1 2 of this Annual 
Report on Form 1 0-K.

Comparison of Cumulative Total Return of Common Stock, Industry Index and NASDAQ Market Index:

Dollars

$300

250

200

1 50

1 00

50

n SEI Investments 

Company

n NASDAQ Market 

Index

n Peer Group Index

20 0 9

2 0 1 0

20 1 1

20 1 2

20 1 3

20 1 4

Assumes $1 00 Invested On January 1 , 201 0 & Dividends Reinvested
Fiscal Year Ended December 31 ,

Issuer Purchases of Equity Securities:
Our Board of Directors has authorized the repurchase of up to $2.578 billion worth of our common stock through multiple 
authorizations. Currently, there is no expiration date for our common stock repurchase program (See Note 8 to the Consolidated 
Financial Statements).

Information regarding the repurchase of common stock during the three months ended December 31 , 201 4 is:

Period

October 1  – 31 , 201 4
November 1  – 30, 201 4
December 1  – 31 , 201 4
Total

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

1 40,000
588,000
855,000
1 ,583,000

$

$

38.1 2
39.1 2
40.04
39.53

$

1 40,000
588,000
855,000
1 ,583,000

59,937,000
36,928,000
1 02,71 3,000

1 5

 
Item 6. Selected Financial Data.

(In thousands, except per-share data)

This table presents selected consolidated financial information for the five-year period ended December 31 , 201 4. This data should be 
read in conjunction with the financial statements and “Management’s Discussion and Analysis of Financial Condition and Results of 
Operations” included in this Annual Report on Form 1 0-K.

Year Ended December 31 ,

Revenues
Total expenses
Income from operations
Other income (expense)
Income before income taxes
Income taxes
Net income
Less: Net income attributable to the  

noncontrolling interest

201 4

201 3

201 2

201 1

$ 1,266,005 $ 1 ,1 26,1 32 $

992,522 $
780,956
21 1 ,566
1 1 7,930
329,496
1 21 ,462
208,034

929,727 $
725,662
204,065
1 1 4,422
31 8,487
1 1 1 ,837
206,650

201 0

900,835
683,302
21 7,533
1 52,248
369,781
1 36,461
233,320

877,723
248,409
1 86,989
435,398
1 46,924
288,474

913,221
352,784
136,878
489,662
170,949
318,713

—
318,713

Net income attributable to SEI Investments

Basic earnings per common share
Shares used to calculate basic earnings per common 

share

Diluted earnings per common share
Shares used to calculate diluted earnings per common 

share

Cash dividends declared per common share

Financial Position as of December 31 ,
Cash and cash equivalents
Total assets
Long-term debt (including current portion)
SEI Investments Shareholders’ equity

$

$

$

$

(350 )
288,1 24

(1 ,1 86 )
206,848

(1 ,691 )
204,959

(1 ,633 )
231 ,687

1.89 $

1 .68 $

1 .1 9 $

1 .1 2 $

1 .23

168,246

1 71 ,561

1 74,295

1 82,547

1 88,468

1.85 $

1 .64 $

1 .1 8 $

1 .1 1 $

1 .22

172,565

1 75,71 8

1 75,872

1 84,1 27

0.46 $

0.42 $

0.63 $

0.27 $

667,446 $

578,273 $

452,247 $

420,986 $

1,542,875
—
1,247,613

1 ,439,1 69
—
1 ,1 56,002

1 ,309,824
—
1 ,038,1 80

1 ,294,559
—
1 ,025,31 6

1 90,321
0.20

496,292
1 ,377,223
95,000
1 ,041 ,570

Item 7. Management’s Discussion and Analysis of Financial Condition and 
Results of Operations.

(In thousands, except share and per-share data)

This discussion reviews and analyzes the consolidated financial condition at December 31 , 201 4 and 201 3, the consolidated results  
of operations for the years ended December 31 , 201 4, 201 3 and 201 2, and other factors that may affect future financial performance. 
This discussion should be read in conjunction with the Selected Financial Data included in Item 6 of this Annual Report and the 
Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report.

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.

Overview

Consolidated Summary
We are a leading global provider of investment processing, investment management and investment operations solutions. We help 
corporations, financial institutions, financial advisors and ultra-high-net-worth families create and manage wealth by providing 
comprehensive, innovative, investment and investment-business solutions. Investment processing fees are earned as monthly fees for 

1 6

contracted services, including computer processing services, software licenses and investment operations services, as well as 
transaction-based fees for providing securities valuation and trade-execution. Investment operations and investment management 
fees are earned as a percentage of average assets under management or administration. As of December 31 , 201 4, through our 
subsidiaries and partnerships in which we have a significant interest, we manage or administer $625.4 billion in mutual fund and 
pooled or separately managed assets, including $252.8 billion in assets under management and $372.6 billion in client assets  
under administration.

Our Condensed Consolidated Statements of Operations for the years ended 201 4, 201 3 and 201 2 were:

201 4

201 3

Percent 
Change

Year Ended December 31 ,

Revenues
Expenses
Income from operations
Net gain from investments
Interest income, net of interest expense
Equity in earnings of unconsolidated affiliates
Gain on sale of subsidiary
Other income
Income before income taxes
Income taxes
Net income
Less: Net income attributable to the noncontrolling interest
Net income attributable to SEI Investments Company

$ 1,266,005 $ 1 ,1 26,1 32
877,723
248,409
659
2,71 3
1 1 8,076
22,1 1 2
43,429
435,398
1 46,924
288,474
(350 )
288,1 24

913,221
352,784
614
2,896
127,786
5,582
—
489,662
170,949
318,713
—

318,713 $

$

Diluted earnings per common share

$

1.85 $

1 .64

201 2

992,522
780,956
21 1 ,566
1 4,067
5,1 92
98,671
—
—
329,496
1 21 ,462
208,034
(1 ,1 86 )
206,848

1 .1 8

$

$

$

Percent 
Change

1 3 %
1 2 %
1 7 %
(95)%
(48)%
20 %
NM
NM
32 %
21 %
39 %
(70)%
39 %

39 %

1 2 %
4 %
42 %
(7)%
7 %
8 %

NM
NM
1 2 %
1 6 %
1 0 %
NM

1 1 %

1 3 %

Significant Items Impacting Our Financial Results in 201 4
Revenues increased $1 39.9 million, or 1 2 percent, to $1 .3 billion in 201 4 compared to 201 3. Net income attributable to SEI increased 
$30.6 million, or 1 1  percent, to $31 8.7 million and diluted earnings per share increased to $1 .85 per share in 201 4 compared to  
$1 .64 per share in 201 3. We believe the following items were significant to our business results during 201 4:

•  Revenue growth was primarily driven by higher Asset management, administration and distribution fees from positive cash  

flows from new and existing clients and market appreciation. Our average assets under management, excluding LSV, increased 
$1 9.5 billion, or 1 3 percent, to $1 64.9 billion during 201 4 as compared to $1 45.4 billion during 201 3. Our average assets under 
administration increased $54.5 billion, or 1 8 percent, to $354.3 billion during 201 4 as compared to $299.8 billion during 201 3. 
•  The increase in our average assets under management primarily resulted from the favorable capital market conditions and new 
client funding in our Institutional Investors segment, increased investment management fees from international clients in our 
Private Banks segment, and positive net cash flows from new and existing advisor relationships in our Investment Advisors 
segment. The increase in our assets under administration primarily resulted from market appreciation and new client funding  
across all of our products offered in our Investment Managers segment.

•  Revenue growth was also driven by increased information processing fees in our Private Banks segment. The increase in our 
information processing fees was primarily attributable to higher fees from the growth in assets processed on the SEI Wealth 
Platform and increased fees from our mutual fund trading solution. In addition, we also recognized $6.0 million in non-recurring 
professional services fees from a single project in the second quarter 201 4. 

•  Our proportionate share in the earnings of LSV was $1 40.2 million in 201 4 as compared to $1 1 9.0 million in 201 3, an increase of  
1 8 percent. The increase was primarily driven by higher assets under management of LSV from existing clients due to market 
appreciation and an increase in performance fees earned by LSV. 

•  Stock-based compensation expense decreased by $24.4 million during 201 4 due to the acceleration of expense recognition during 

201 3 for stock options that achieved performance vesting targets earlier than previously estimated as a result of unexpected, 
non-recurring events which were not part of our normal business operations (See the caption “Stock-Based Compensation” later  
in this discussion for more information).

•  The direct costs associated with our investment management programs increased in our Private Banks and Institutional Investors 
segments. These costs primarily relate to fees charged by investment advisory firms and are included in Sub-advisory, distribution 
and other asset management costs on the accompanying Consolidated Statements of Operations.

1 7

 
•  Our operating expenses related to personnel in our Private Banks and Investment Managers segments increased. These  

increased operational costs, primarily attributable to salary and incentive compensation, are mainly related to servicing new  
and existing clients. 

•  We capitalized $34.9 million in 201 4 for significant enhancements and new functionality for the SEI Wealth Platform as compared  

to $39.5 million in 201 3. Included in the amount for 201 3 is a one-time contractual payment of $8.8 million to exercise a conversion 
option in lieu of periodic fee payments pertaining to a software license related to the Platform. Amortization expense related to 
capitalized software was $38.5 million during 201 4 as compared to $34.4 million during 201 3 primarily due to continued 
enhancements to the Platform. Our non-capitalized development costs associated with the Platform increased due to higher 
personnel and consulting costs.

•  Our operating margins in all four core business segments improved in 201 4 mainly due to increased recurring revenues generated 

from the higher levels of assets under management and administration as previously discussed. 

•  We recorded a pre-tax charge of $1 1 .3 million against earnings during the fourth quarter for the write down of our investment in  
a wealth services firm based in China (See the caption “Equity in earnings of unconsolidated affiliates” later in this discussion for 
more information).

•  We recorded a pre-tax gain of $5.6 million, or $0.02 diluted earnings per share, in 201 4 from the sale of SEI Asset Korea (SEI AK) 

which was completed during the first quarter 201 3. This gain was the result of the first in a series of three annual payments related 
to the contingent purchase price we received from the sale. The gain from the sale is included in Gain on sale of subsidiary on the 
accompanying Consolidated Statement of Operations (See Note 1 5 to the Consolidated Financial Statements for more information).
•  Our effective tax rate was 34.9 percent in 201 4 as compared to 33.7 percent in 201 3. The increase in our tax rate was primarily due 
to a one time reduction in 201 3 from a Pennsylvania state tax law change (See the caption “Income Taxes” later in this discussion 
for more information).

•  We continued our stock repurchase program and purchased approximately 7,888,000 shares at an average price of $35.29 per 

share for a total cost of $278.4 million.

Significant Items Impacting Our Financial Results in 201 3
Revenues increased $1 33.6 million, or 1 3 percent, to $1 .1  billion in 201 3 compared to 201 2. Net income attributable to SEI increased 
$81 .3 million, or 39 percent, to $288.1  million and diluted earnings per share increased to $1 .64 per share in 201 3 compared to  
$1 .1 8 per share in 201 2. We believe the following items were significant to our business during 201 3:

•  Revenue growth was primarily driven by higher Asset management, administration and distribution fees from positive cash  

flows from new and existing clients and market appreciation. Our average assets under management, excluding LSV, increased 
$1 4.9 billion, or 1 1  percent, to $1 45.4 billion during 201 3 as compared to $1 30.5 billion during 201 2.

•  Sales of new business in our Institutional Investors and Investment Managers segments as well as positive cash receipts from new 
and existing advisor relationships in our Investment Advisors segment contributed to the increase in our revenues and profits.
•  Revenue growth was also driven by increased Information processing and software servicing fees in our Private Banks segment. 

The increase was primarily attributable to new business and increased fees earned from our mutual fund trading solution.

•  We recorded income of $43.4 million, or $0.1 6 diluted earnings per share, from a cash settlement payment received during the 

second quarter pertaining to litigation related to the purchase of securities of Cheyne Finance LLC, a structured investment vehicle 
(SIV) security (See Note 1 6 to the Consolidated Financial Statements for more information).

•  Our proportionate share in the earnings of LSV was $1 1 9.0 million in 201 3 as compared to $1 00.0 million in 201 2, an increase of  
1 9 percent. The increase in our earnings was primarily driven by the increase in assets under management of LSV from existing 
clients due to market appreciation and an increase in performance fees earned by LSV. Our earnings from LSV, however, were 
negatively impacted by the decrease in our ownership interest from approximately 39.8 percent to approximately 39.3 percent 
during the second quarter. 

•  Our sale of SEI AK was completed during the first quarter resulting in a gain of $22.1  million, or $0.08 diluted earnings per share. 
The operating results of SEI AK were included in the Private Banks business segment (See Note 1 5 to the Consolidated Financial 
Statements for more information).

•  The direct costs associated with our investment management programs increased in our Private Banks and Institutional Investors 
segments. These costs primarily relate to fees charged by investment advisory firms and are included in Sub-advisory, distribution 
and other asset management costs on the accompanying Consolidated Statements of Operations.

•  Our operating expenses related to personnel and third-party service providers in our Private Banks and Investment Managers 

segments increased. These increased operational costs are mainly related to servicing new and existing clients and are included  
in Compensation, benefits and other personnel as well as Consulting, outsourcing and professional fees on the accompanying 
Consolidated Statements of Operations.

•  Stock-based compensation expense increased by $22.1  million during 201 3 as compared 201 2 due mainly to a change in our 

estimate of the timing of when stock option vesting targets will be achieved. The change in our estimate resulted from the positive 

1 8

earnings impacts from the previously mentioned cash payment for the litigation settlement and the sale of SEI AK during 201 3  
(See the caption “Stock-Based Compensation” later in this discussion for more information).

•  We capitalized $39.5 million in 201 3 for significant enhancements and new functionality for the SEI Wealth Platform as compared  

to $31 .0 million in 201 2. Included in the amount for 201 3 is a one-time contractual payment of $8.8 million to exercise a conversion 
option in lieu of periodic fee payments pertaining to a software license related to the Platform. Amortization expense related to 
capitalized software increased to $34.4 million during 201 3 as compared to $32.6 million during 201 2 primarily due to continued 
enhancements to the Platform. Amortization expense during 201 2 includes $2.7 million of expense related to the remaining net 
book value of a component of the Platform that was discontinued.

•  Corporate overhead costs increased due to increased stock-based compensation, increased personnel costs and higher costs 

related to regulatory and compliance matters.

•  Our effective tax rates were 33.7 percent in 201 3 and 36.9 percent in 201 2. The 201 3 tax rate was benefited by the changes to the 
Pennsylvania Tax Law primarily relating to the method of apportioning income to Pennsylvania. These changes have dramatically 
reduced the deferred tax liability which had accumulated during prior years. Our 201 3 tax rate was also benefited by the 
reinstatement of the research and development tax credit. The 201 2 tax rate included the U.S. deferred taxes on the undistributed 
earnings of SEI AK (See the caption “Income Taxes” later in this discussion for more information).

•  We continued our stock repurchase program and purchased approximately 6,789,000 shares at an average price of $30.92 per 

share for a total cost of $209.9 million.

Product Development — SEI Wealth Platform
Much of our product development efforts have been focused on building and delivering the SEI Wealth Platform. The Platform  
is a business solution heavily supported by technology to drive our entry into the European private bank market, improve client 
experience capabilities, and strengthen operating efficiencies. The Platform combines internally built functionality and third party 
applications and integrates them into a single solution with a single user experience. The goal is to provide straight through business 
processing and transform the middle and back office operations that exist today. The capabilities of the Platform will expand our 
service offerings to include large financial institutions, investment advisors, insurance companies, brokerage houses, and other  
similar institutions. In addition, the capabilities of the Platform provide us the opportunity to enter into new global markets.

We will continue to focus our development efforts on enhancing the functionality of the Platform and building the operational 
infrastructure for a wider deployment of the Platform to financial institutions and investment advisors in the United States. Future 
enhancements to the Platform may replace significant existing components or functionality. Once these enhancements are completed 
and ready to be placed into service, the components or functionality that are being replaced will be abandoned. If this occurs, the 
remaining net book value of the previously capitalized software development costs will be expensed over the remaining useful life  
of those components or written off.

An area of continued focus is improving the operational efficiency of the Platform that would promote scale more quickly. Our 
operational costs consist mainly of third-party vendor costs and SEI personnel. We are investing in the operational infrastructure that 
will attempt to provide a sustainable operating model that minimizes cost as revenues increase. However, if we are unable to price our 
services correctly and provide an attractive value proposition for our prospective clients, the incremental rate of revenue and profits 
may be hampered.

As we progress through the different stages of deployment of the Platform to a broader market, we expect to encounter numerous 
challenges; however, in our opinion, the Platform promises to provide a significant opportunity to expand our services into new 
markets that will increase revenues and profits in the long-term. Until we attain a level of revenues that technological and operational 
scale can be achieved, we expect continued pressure on our operating margins in the Private Banks business segment and an 
increased level of pressure on our operating margins in the Investment Advisors business segment.

Sensitivity of our revenues and earnings to capital market fluctuations
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. The prevailing capital market conditions during 201 3 and 201 4 had a net positive 
impact on our asset-based fees thereby increasing our base revenues. Conversely, prolonged future downturns in the general capital 
markets could have adverse effects on our revenues and earnings derived from assets under management and administration. 

1 9

 
Ending Asset Balances
This table presents ending asset balances of our clients, or of our clients’ customers, for which we provide management or 
administrative services through our subsidiaries and partnerships in which we have a significant interest.

Ending Asset Balances
(In millions)

As of December 31 ,

Private Banks:

Equity and fixed income programs (a)
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets

Investment Advisors:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management

Institutional Investors:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management

Investment Managers:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets

Investments in New Businesses:

Equity and fixed income programs
Liquidity funds
Total assets under management

LSV:

Equity and fixed income programs

Total:

Equity and fixed income programs (a)
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets under management and 

201 4

201 3

Percent 
Change

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

18,666
8
5,889
24,563
16,741
41,304

43,845
9
3,173
47,027

72,828
95
2,929
75,852

27
20,833
946
21,806
355,890
377,696

736
98
834

82,665

218,767
20,945
13,035
252,747
372,631

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

1 5,472
1 4
5,685
21 ,1 71
1 5,272
36,443

38,574
1 1
2,846
41 ,431

66,548
1 09
2,644
69,301

69
22,377
71 8
23,1 64
31 1 ,992
335,1 56

61 9
46
665

76,1 89

1 97,471
22,51 1
1 1 ,939
231 ,921
327,264

21 %
(43)%
4 %
1 6 %
1 0 %
1 3 %

1 4 %
(1 8)%
1 1 %
1 4 %

9 %
(1 3)%
1 1 %
9 %

(61)%
(7)%
32 %
(6)%
1 4 %
1 3 %

1 9 %
1 1 3 %
25 %

8 %

1 1 %
(7)%
9 %
9 %
1 4 %

201 2

1 8,862
1 1
6,008
24,881
1 2,1 78
37,059

31 ,220
1 4
2,51 4
33,748

62,1 60
1 02
2,454
64,71 6

67
1 6,1 97
408
1 6,672
244,671
261 ,343

51 3
43
556

60,947

1 73,769
1 6,324
1 1 ,427
201 ,520
256,849

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

administration

$

625,378

$

559,1 85

1 2 %

$

458,369

Percent 
Change

(1 8)%
27 %
(5)%
(1 5)%
25 %
(2)%

24 %
(21)%
1 3 %
23 %

7 %
7 %
8 %
7 %

3 %
38 %
76 %
39 %
28 %
28 %

21 %
7 %
20 %

25 %

1 4 %
38 %
4 %
1 5 %
27 %

22 %

(a)  Equity and fixed income programs in the Private Banks segment in 201 2 includes $7.0 billion in assets related to SEI AK which was 

sold in the first quarter of 201 3 (See Note 1 5 to the Consolidated Financial Statements).

2 0

Average Asset Balances
This table presents average asset balances of our clients, or of our clients’ customers, for which we provide management or 
administrative services through our subsidiaries and partnerships in which we have a significant interest.

Average Asset Balances
(In millions)

For the Year Ended December 31 ,

201 4

201 3

Percent 
Change

Private Banks:

Equity and fixed income programs (a)
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets

Investment Advisors:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management

Institutional Investors:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management

Investment Managers:

Equity and fixed income programs
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets

Investments in New Businesses:

Equity and fixed income programs
Liquidity funds
Total assets under management

LSV:

Equity and fixed income programs

Total:

Equity and fixed income programs (a)
Collective trust fund programs
Liquidity funds
Total assets under management
Client proprietary assets under administration
Total assets under management and 

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

17,838
12
5,547
23,397
15,648
39,045

41,346
12
2,840
44,198

70,796
108
2,773
73,677

66
21,929
857
22,852
338,645
361,497

671
81
752

80,440

211,157
22,061
12,098
245,316
354,293

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

1 5,1 88
1 1
5,252
20,451
1 3,626
34,077

35,290
1 4
2,355
37,659

64,003
1 06
2,937
67,046

74
1 8,985
554
1 9,61 3
286,208
305,821

577
33
61 0

68,870

1 84,002
1 9,1 1 6
1 1 ,1 31
21 4,249
299,834

1 7 %
9 %
6 %
1 4 %
1 5 %
1 5 %

1 7 %
(1 4)%
21 %
1 7 %

1 1 %
2 %
(6)%
1 0 %

(1 1)%
1 6 %
55 %
1 7 %
1 8 %
1 8 %

1 6 %
1 45 %
23 %

1 7 %

1 5 %
1 5 %
9 %
1 5 %
1 8 %

201 2

1 7,434
282
5,332
23,048
1 0,873
33,921

29,61 1
728
1 ,970
32,309

56,584
31 2
3,41 5
60,31 1

63
1 3,873
276
1 4,21 2
233,024
247,236

537
35
572

57,935

1 62,1 64
1 5,1 95
1 1 ,028
1 88,387
243,897

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

administration

$

599,609

$

51 4,083

1 7 %

$

432,284

Percent 
Change

(1 3)%
(96)%
(2)%
(1 1)%
25 %
— %

1 9 %
(98)%
20 %
1 7 %

1 3 %
(66)%
(1 4)%
1 1 %

1 7 %
37 %
1 01 %
38 %
23 %
24 %

7 %
(6)%
7 %

1 9 %

1 3 %
26 %
1 %
1 4 %
23 %

1 9 %

(a)  Equity and fixed income programs in the Private Banks segment in 201 2 includes $6.6 billion in average assets related to SEI AK 

which was sold in the first quarter of 201 3 (See Note 1 5 to the Consolidated Financial Statements).

In the preceding tables, assets under management are total assets of our clients or their customers invested in our equity and 
fixed-income investment programs, collective trust fund programs, and liquidity funds for which we provide asset management 

2 1

 
services. Assets under management and administration also include total assets of our clients or their customers for which we provide 
administrative services, including client proprietary fund balances for which we provide administration and/or distribution services.  
All assets presented in the preceding tables 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 year ended 201 4 compared to the year ended 
201 3, and for the year ended 201 3 compared to the year ended 201 2 are:

Year Ended December 31 ,

201 4

201 3

Percent 
Change

201 2

Percent 
Change

Private Banks:
Revenues
Expenses
Operating profit

Gain on sale of subsidiary
Total profit

Operating margin (a)
Investment Advisors:
Revenues
Expenses
Operating profit

Operating margin
Institutional Investors:
Revenues
Expenses
Operating profit

Operating margin
Investment Managers:
Revenues
Expenses
Operating profit

Operating margin
Investments in New Businesses:
Revenues
Expenses
Operating loss

$

$

$

$

$

$

$

441,467
399,620
41,847

5,582
47,429

9 %

283,811
146,500
137,311

48 %

284,677
140,659
144,018

51 %

251,310
159,176
92,134

37 %

4,740
18,377
(13,637)

$

$

$

$

$

$

$

397,1 38
392,399
4,739

22,1 1 2
26,851

1 %

241 ,252
1 33,962
1 07,290

44 %

257,658
1 33,21 8
1 24,440

48 %

226,081
1 48,977
77,1 04

34 %

4,003
1 5,723
(1 1 ,720)

1 1 %
2 %

NM

NM
NM

1 8 %
9 %
28 %

1 0 %
6 %
1 6 %

1 1 %
7 %
1 9 %

1 8 %
1 7 %
NM

$

$

$

$

$

$

$

364,788
357,001
7,787

—
7,787

2 %

202,703
1 20,1 46
82,557

41 %

227,889
1 1 6,546
1 1 1 ,343

49 %

1 93,484
1 27,525
65,959

34 %

3,658
1 4,954
(1 1 ,296)

9 %
1 0 %
(39)%

NM
NM

1 9 %
1 1 %
30 %

1 3 %
1 4 %
1 2 %

1 7 %
1 7 %
1 7 %

9 %
5 %

NM

(a)  Percentage determined exclusive of gain from sale of subsidiary (See Note 1 5 to the Consolidated Financial Statements).
For additional information pertaining to our business segments, see Note 1 3 to the Consolidated Financial Statements.

Private Banks

Year Ended December 31 ,

Revenues:

201 4

201 3

Percent 
Change

201 2

Percent 
Change

Investment processing and software  

servicing fees

Asset management, administration &  

distribution fees

Transaction-based and trade execution fees

Total revenues

$

283,021

$

260,085

9 %

$

233,790

132,427
26,019
441,467

$

1 08,792
28,261
397,1 38

$

22 %
(8)%
1 1 %

1 03,71 2
27,286
364,788

$

1 1 %

5 %
4 %
9 %

2 2

Revenues increased $44.3 million, or 1 1  percent, in 201 4 compared to the prior year. Revenues during 201 4 were primarily  
affected by:
•  Increased investment management fees from existing international clients due to higher average assets under management  

from improved capital markets and increased net cash flows;

•  Increased fees from the growth in existing client assets processed on the SEI Wealth Platform;
•  Increased fees earned on our mutual fund trading solution due to an increase in assets processed on the system from new and 

existing clients; and

•  $6.0 million in non-recurring professional services fees from a single project recorded in the second quarter 201 4 related to 

investment processing services; partially offset by

•  Lower recurring investment processing fees due to price reductions provided to existing clients that recontracted for longer  

periods and client losses.

Revenues increased $32.4 million, or nine percent, in 201 3 compared to the prior year. Revenues during 201 3 were primarily  
affected by:
•  Increased recurring investment processing fees from new and existing investment processing clients;
•  Increased fees earned on our mutual fund trading solution due to an increase in assets from new and existing clients; and
•  Increased investment management fees from existing clients due to higher average assets under management from improved 

capital markets, net of the decrease in assets under management from the sale of SEI AK in the first quarter 201 3; partially offset by
•  Lower recurring investment processing fees due to price reductions provided to existing clients that recontracted for longer periods 

and client losses.

Operating margins were nine percent in 201 4 and one percent in 201 3. Operating income increased $37.1  million in 201 4 compared  
to the prior year. Operating income in 201 4 was primarily affected by:
•  An increase in revenues; 
•  Decreased stock-based compensation costs of $7.3 million; partially offset by
•  Increased direct expenses associated with increased investment management fees from existing international clients; 
•  Increased non-capitalized development costs, mainly personnel and consulting costs, related to the SEI Wealth Platform; 
•  Increased operational costs, mainly salary and consulting costs, for servicing investment processing clients; 
•  Increased third-party expenses associated with clients processed on the SEI Wealth Platform; and
•  Increased amortization expense related to the SEI Wealth Platform. 
Operating margins were one percent in 201 3 and two percent in 201 2. Operating income decreased $3.0 million, or 39 percent,  
in 201 3 compared to the prior year. Operating income in 201 3 was primarily affected by:
•  Increased direct expenses associated with the increased investment management fees from existing international clients and  

our mutual fund trading solution;

•  Increased operational costs, mainly salary, incentive compensation, consulting and outsourcing costs, for servicing new and 

existing investment processing clients;

•  Increased stock-based compensation costs of $6.3 million primarily due to the change in management’s estimate of the timing  

of the achievement of stock option vesting targets;

•  Increased direct expenses associated with the increased investment processing fees; and
•  Increased amortization expense related to the SEI Wealth Platform; partially offset by
•  An increase in revenues.

Investment Advisors

Year Ended December 31 ,

Revenues:

Investment management fees-SEI fund 

programs

Separately managed account fees
Other fees

Total revenues (a)

201 4

201 3

Percent 
Change

201 2

Percent 
Change

$

$

223,371
45,404
15,036
283,811

$

$

1 91 ,473
35,382
1 4,397
241 ,252

1 7 %
28 %
4 %
1 8 %

$

$

1 60,324
28,580
1 3,799
202,703

1 9 %
24 %
4 %
1 9 %

(a)  All amounts are reflected in Asset management, administration and distribution fees except for $2,406, $1 ,921  and $1 ,891  in 201 4, 

201 3 and 201 2, respectively, which are reflected in Transaction-based and trade execution fees.

2 3

 
Revenues increased $42.6 million, or 1 8 percent, in 201 4 and increased $38.5 million, or 1 9 percent, in 201 3 compared 201 2. 
Revenues during 201 4 and 201 3 were primarily affected by:
•  Increased investment management fees and separately managed account program fees from existing clients due to higher average 
assets under management caused by market appreciation and an increase in net cash flows from new and existing advisors; and 
•  An increase in the average basis points earned on assets due to the increase in average assets under management and product 

mix; partially offset by

•  Lower fees earned in 201 3 from our collective trust fund offering due to the closing of the SEI Stable Asset Fund at the end of 201 2.
Operating margins were 48 percent in 201 4 and 44 percent in 201 3. Operating income increased $30.0 million, or 28 percent, in 201 4 
compared to the prior year. Operating income in 201 4 was primarily affected by:
•  An increase in revenues; and 
•  Decreased stock-based compensation costs of $4.2 million; partially offset by 
•  Increased direct expenses associated with increased investment management programs;
•  Increased non-capitalized development costs, mainly personnel and consulting costs, related to the SEI Wealth Platform; and 
•  Increased amortization expense related to the SEI Wealth Platform. 
Operating margins were 44 percent in 201 3 and 41  percent in 201 2. Operating income increased $24.7 million, or 30 percent, in 201 3 
compared to the prior year. Operating income in 201 3 was primarily affected by:
•  An increase in revenues; partially offset by
•  Increased amortization expense relating to the SEI Wealth Platform as well as spending associated with building the necessary 

functionality and infrastructure for servicing financial institutions and investment advisors in the United States;

•  Increased personnel costs, mainly salary and incentive compensation; and
•  Increased stock-based compensation costs of $3.9 million primarily due to the change in management’s estimate of the timing  

of the achievement of stock option vesting targets.

Institutional Investors
Revenues increased $27.0 million, or ten percent, in 201 4 and increased $29.8 million, or 1 3 percent, in 201 3 compared to 201 2. 
Revenues during 201 4 and 201 3 were primarily affected by:
•  Increased investment management fees from existing clients due to higher average assets under management from market 

appreciation as well as additional asset funding from existing clients; and

•  Asset funding from new sales of our retirement and not-for-profit solutions; partially offset by client losses.
Operating margins were 51  percent in 201 4 and 48 percent in 201 3. Operating income increased $1 9.6 million, or 1 6 percent, in 201 4 
compared to the prior year. Operating income during 201 4 was primarily affected by:
•  An increase in revenues; and 
•  Decreased stock-based compensation costs of $3.9 million; partially offset by 
•  Increased direct expenses associated with higher investment management fees, and 
•  Increased personnel costs, mainly salary and incentive-based compensation expenses. 
Operating margins were 48 percent in 201 3 and 49 percent in 201 2. Operating income increased $1 3.1  million, or 1 2 percent, in 201 3 
compared to the prior year. Operating income during 201 3 was primarily affected by:
•  An increase in revenues; partially offset by
•  Increased direct expenses associated with higher investment management fees;
•  Increased stock-based compensation costs of $3.7 million primarily due to the change in management’s estimate of the timing  

of the achievement of stock option vesting targets; and

•  Increased other personnel costs associated with investment management operations.

Investment Managers
Revenues increased $25.2 million, or 1 1  percent, in 201 4 and increased $32.6 million, or 1 7 percent, in 201 3 compared to 201 2. 
Revenues during 201 4 and 201 3 were primarily affected by:
•  Net positive cash flows from existing clients due to new funding along with higher valuations from improved capital markets; 
•  Increased accounts from our separately managed account program from new and existing clients in 201 3; and
•  Positive cash flows from new clients; partially offset by client losses. 
Operating margins were 37 percent in 201 4 and 201 3. Operating income increased $1 5.0 million, or 1 9 percent, in 201 4 compared  
to the prior year. Operating income during 201 4 was primarily affected by:
•  An increase in revenues; and 
•  Decreased stock-based compensation costs of $4.5 million; partially offset by
•  Increased personnel expenses, technology and other operational costs to service new and existing clients. 

24

Operating margins were 34 percent in 201 3 and 201 2. Operating income increased $1 1 .1  million, or 1 7 percent, in 201 3 compared  
to the prior year. Operating income during 201 3 was primarily affected by:
•  An increase in revenues; partially offset by
•  Increased personnel expenses and other operational costs to service new clients of our hedge fund and separately managed 

accounts solutions;

•  Increased stock-based compensation costs of $4.2 million primarily due to the change in management’s estimate of the timing  

of the achievement of stock option vesting targets; and

•  Increased investment spending for outsourced technology service providers.

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 $48.9 million, $53.7 million and $45.8 million in 201 4, 201 3 and 
201 2, respectively. The decrease in corporate overhead expenses in 201 4 was primarily due to decreased stock-based compensation 
costs of $4.2 million. The increase in 201 3 was primarily due to increased stock-based compensation costs of $3.8 million primarily 
due to the change in management’s estimate of the timing of the achievement of stock option vesting targets, other personnel-related 
costs and higher costs related to regulatory and compliance matters.

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

Year Ended December 31 ,

Net gain from investments
Interest and dividend income
Interest expense
Equity in earnings of unconsolidated affiliates
Gain on sale of subsidiary
Other income
Total other income and expense items, net

201 4

614
3,354
(458)
127,786
5,582
—
136,878

$

$

201 3

659
3,248
(535 )
1 1 8,076
22,1 1 2
43,429
1 86,989

$

$

$

$

201 2

1 4,067
5,696
(504 )
98,671
—
—
1 1 7,930

Net gain from investments
During 201 2, we recognized net gains of $1 3.2 million from Structured Investment Vehicles (SIV) securities. Of the net gains 
recognized during 201 2, $6.8 million resulted from cash payments received from the SIV securities and $1 .1  million was from a  
net increase in fair value. In November 201 2, we sold our remaining SIV security, the Gryphon senior note, and recognized a gain  
of $5.3 million.

Equity in earnings of unconsolidated affiliates
Equity in earnings of unconsolidated affiliates primarily includes our ownership in LSV. At December 31 , 201 4, our interest in LSV was 
approximately 39.3 percent. Our proportionate share in the earnings of LSV was $1 40.2 million in 201 4 as compared to $1 1 9.0 million 
in 201 3, an increase of 1 8 percent. The increase in our earnings was primarily due to increased assets under management of LSV from 
existing clients due to improved capital markets and an increase in performance fees. LSV’s average assets under management 
increased $1 1 .6 billion to $80.4 billion during 201 4 as compared to $68.9 billion during 201 3, an increase of 1 7 percent. Our earnings 
from LSV, however, were negatively impacted by a decrease in our ownership interest in April 201 3 from approximately 39.8 percent 
to 39.3 percent. In 201 3, our proportionate share in the earnings of LSV increased to $1 1 9.0 million from $1 00.0 million in 201 2, an 
increase of 1 9 percent. The increase in 201 3 was also primarily due to increased assets from new and existing clients due to market 
appreciation and increased performance fees.

Equity in earnings of unconsolidated affiliates also includes our proportionate share in the losses of Gao Fu, a wealth services firm 
based in China. Our investment in Gao Fu resulted from purchases of common stock between 201 1  and 201 3 and funding through  
two convertible loan agreements in 201 4. The first loan agreement contained specific revenue and net income targets for Gao Fu to 
achieve by December 31 , 201 4. In December 201 4, a review of the financial statements of Gao Fu indicated that the achievement of 
such performance targets as stipulated in the first loan agreement was unlikely. As a result, we wrote down our investment in Gao Fu 
to its net realizable value based on our ownership percentage of the remaining net assets of the firm and recognized an impairment 
charge of $1 1 .3 million during the fourth quarter 201 4. This charge is reflected in Equity in earnings of unconsolidated affiliates on the 
accompanying Consolidated Statements of Operations (See Note 2 to the Consolidated Financial Statements for more information).

25

 
Gain on sale of subsidiary
On July 31 , 201 2, we entered into a agreement to sell all of our ownership interest in SEI AK and completed the sale on March 28, 
201 3. We recorded gains from the sale of $5.6 million and $22.1  million during 201 4 and 201 3, respectively. The gain recorded in 
201 4 was the result of the first in a series of three annual payments related to the contingent purchase price we received from the 
sale. These gains are included in Gain on sale of subsidiary on the accompanying Consolidated Statement of Operations (See Note 1 5 
to the Consolidated Financial Statements for more information).

Other income
On April 24, 201 3, we entered into a Settlement Agreement with respect to litigation captioned Abu Dhabi Commercial Bank, et. al.  
v. Morgan Stanley & Co., Incorporated, et. al., related to the purchase of Cheyne Finance LLC, a SIV security. In accordance with the 
Settlement Agreement, we received a cash settlement payment after fees and expenses of $43.4 million during 201 3 which is 
included in Other income on the accompanying Consolidated Statement of Operations (See Note 1 6 to the Consolidated Financial 
Statements for more information).

Income Taxes
Our effective tax rate was 34.9 percent in 201 4, 33.7 percent in 201 3, and 36.9 percent in 201 2. Our effective tax rate is affected by 
recurring items, such as tax rates in various states and foreign jurisdictions and the relative amount of income we earned in those 
jurisdictions. These amounts have been fairly consistent in prior years. In 201 4, there was an increase in the taxable income earned  
in certain foreign jurisdictions which was taxed at a lower rate or was offset by the foreign tax credit.

Our effective tax rate is also affected by discrete items that may occur in any given year, but are not consistent from year to year. Below 
are the most significant recurring and discrete items (See Note 12 to the Consolidated Financial Statements for more information):

201 4
•  There was a reduction in our effective rate due to more pre-tax income being taxed in foreign jurisdictions with lower effective  

tax rates or offset by a foreign tax credit;

•  There was a reduction in our state effective rate as a result of Pennsylvania Tax Law changes that became effective January 1 , 

201 4. The 201 3 tax rate was benefited by a one-time reduction in deferred taxes; and 

•  There was a reduction in our effective rate due to the reinstatement of the Research and Development Tax Credit. The tax credit 
was retroactively extended for 201 4 through the Tax Increase Prevention Law, signed into law on December 1 9, 201 4. The 201 3  
tax rate reflected the Research and Development Tax Credit for two years. 

201 3
•  There was a reduction in our effective rate that was the result of Pennsylvania Tax Law changes enacted on July 1 8, 201 3 which 
became effective on January 1 , 201 4. These changes have reduced the deferred tax liability which had accumulated during prior 
years. In accordance with the tax accounting rules, the effect of the law change is recorded in the year in which the law was signed. 
The primary change that affects SEI results from the reduction of net income apportioned to the State of Pennsylvania. The bill 
adopts “market-based” sourcing for apportionment. This method apportions sales to the state where the benefits are being derived 
by the customer. The current method apportions sales of services to the state where the cost was incurred to perform those 
services; and

•  There was a reduction in our effective rate from the reinstatement of the Research and Development Tax Credit. The tax credit was 
reinstated retroactively from January 1 , 201 2 through December 31 , 201 3 by The American Taxpayer Relief Act of 201 2 (the Act), 
signed into law on January 2, 201 3. The accounting rules require the determination of current and deferred taxes be based upon 
the provisions of the enacted tax law as of the balance sheet date. Since the Act was not signed into law until January 2, 201 3, the 
effect was not reflected in the tax provision for 201 2. The 201 3 effective tax rate reflects a Research and Development Tax Credit 
for both 201 2 and 201 3.

201 2
•  There was an increase in our effective tax rate as a result of the sale of SEI AK because we no longer considered the  
undistributed earnings of SEI AK to be indefinitely reinvested and, therefore, accrued U.S. deferred taxes on the  
cumulative undistributed earnings;

•  There was an increase in our effective tax rate as a result of the expiration of the Research and Development Tax Credit; and
•  There was a reduction in our effective tax rate as a result of state tax planning.
•  Our 201 5 effective tax rate could be affected by the expiration of the Research and Development Tax Credit and taxation provisions 

of the budget proposed by President Obama for fiscal year 201 6, that begins on October 1 , 201 5, if enacted into law.

2 6

Stock-Based Compensation
During 201 4, 201 3 and 201 2, we recognized approximately $1 3.5 million, $37.9 million and $1 5.7 million, respectively, in stock-based 
compensation expense. All of our stock options have performance-based vesting provisions that tie vesting of the options to our 
financial performance and do not contain any time-based vesting provisions. The amount of stock-based compensation expense 
recognized is based upon an estimate of when the earnings per share targets may be achieved. If our estimate proves to be 
inaccurate, the amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed. 
This may cause volatility in the recognition of stock-based compensation expense and materially affect our earnings.

During 201 3, we revised our estimate of when certain vesting targets were expected to be achieved. This change in estimate  
resulted in an increase of $1 9.6 million in stock-based compensation expense. The change in our estimate resulted from the positive 
earnings impacts from the unexpected cash payment received for a litigation settlement and the gain recognized from the sale of  
SEI AK during 201 3. These non-recurring events, which were not part of our normal business operations, had a significant positive 
impact on our earnings and were not initially incorporated into our estimate made at December 31 , 201 2 for the achievement of our 
option vesting targets.

As of December 31 , 201 4, there was approximately $45.1  million of unrecognized compensation cost related to unvested employee 
stock options that we expect will vest and is being amortized. 

Fair Value Measurements
The fair value of our financial assets and liabilities is determined in accordance with the fair value hierarchy. The fair value of our 
financial assets are determined using Level 1  or Level 2 inputs and consist mainly of investments in equities or mutual funds that are 
quoted daily and GNMA and other U.S. government agency securities that are single issuer pools that are valued based on current 
market data of similar assets. We did not have any financial liabilities at December 31 , 201 4 or 201 3 (See Note 5 to the Consolidated 
Financial Statements for more information).

Regulatory Matters
Like many firms operating within the financial services industry, we are experiencing a challenging 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.

During the last twelve months, SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range  
of periodic or thematic reviews or examinations by more than eight 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, the Central Bank of Ireland and others. These examinations typically result in the 
identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory 
authorities could require remediation activities or pursue enforcement proceedings against us or our subsidiaries. As described  
under the caption “Regulatory Considerations” in Item 1  of this report, 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 examinations and reviews 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

Year Ended December 31 ,

Net cash provided by operating activities
Net cash (used in) provided by investing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year

201 4

374,803
(53,385)
(224,750)
(7,495)
89,173
578,273
667,446

$

$

201 3

351 ,224
(62,41 3 )
(1 62,785 )
—
1 26,026
452,247
578,273

$

$

201 2

257,490
1 6,627
(242,856 )
—
31 ,261
420,986
452,247

$

$

Cash requirements and liquidity needs are primarily funded through our cash flow from operations and our capacity for additional 
borrowing. At December 31 , 201 4, our unused sources of liquidity consisted of cash and cash equivalents and the full amount 
available under our credit facility.

2 7

 
Our credit facility provides for borrowings of up to $300.0 million and is scheduled to expire in February 201 7 (See Note 7 to the 
Consolidated Financial Statements). 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 mergers, consolidations, asset sales, 
investments, transactions with affiliates, or to incur liens, 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. We currently have no borrowings under our credit facility.

The majority of our excess cash reserves are primarily placed in accounts located in the United States that invest 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 
January 30, 201 5, the amount of cash and cash equivalents considered free and immediately accessible for other general corporate 
purposes was $368.7 million.

Our cash and cash equivalents include accounts managed by our subsidiaries and minority-owned 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. Also, some of our foreign subsidiaries may have excess cash reserves which are 
considered to be undistributed earnings and indefinitely reinvested. Upon distribution of these earnings, in the form of dividends or 
otherwise, we would be immediately subject to both U.S. and foreign withholding taxes which would reduce the amount we would 
ultimately realize. We do not include accounts of our foreign subsidiaries in our calculation of free and immediately accessible cash  
for other general corporate purposes.

Cash flows from operations increased $23.6 million in 201 4 compared to 201 3 due to the increase in our net income and the non-cash 
adjustments related to the gains from the sale of SEI AK and deferred tax expense. These increases were offset by the non-cash 
adjustment for stock-based compensation and the net change in our working capital accounts (See Note 1 5 to the Consolidated 
Financial Statements for more information regarding the sale of SEI AK). 

Cash flows from operations increased $93.7 million in 201 3 compared to 201 2 primarily due to an increase in our earnings, the cash 
payment of $43.4 million received pertaining to a litigation settlement and an additional quarterly partnership distribution payment 
received from LSV due to a change in the payment schedule (See Note 1 6 to the Consolidated Financial Statements for more 
information regarding the litigation settlement). 

Cash flows from investing activities increased $9.0 million in 201 4 compared to 201 3 and decreased $79.0 million in 201 3 compared 
to 201 2. Net cash used in investing activities includes:
•  Purchases, sales and maturities of marketable securities. Our purchases, sales and maturities of marketable securities during 

201 4, 201 3 and 201 2 were as follows:

Purchases
Sales and maturities
Net investing activities from marketable securities

$

$

(56,754) $
63,434
6,680 $

(57,560 ) $
47,574
(9,986 ) $

(33,662 )
1 08,1 82
74,520

201 4

201 3

201 2

Marketable securities purchased generally consisted of additional GNMA securities to satisfy applicable regulatory requirements  
of SPTC, investments in short-term U.S. government agency and commercial paper securities through SIDCO’s cash management 
program and investments for the start-up of new investment products. Proceeds received from sales and maturities primarily 
included sales and principal prepayments related to the GNMA securities owned by SPTC, maturities of short-term securities owned 
by SIDCO and, in 201 2, the sale of our remaining SIV security.

•  The capitalization of costs incurred in developing computer software. We capitalized $34.9 million, $39.5 million and  

$31 .0 million of software development costs in 201 4, 201 3 and 201 2, respectively. Amounts capitalized in each year include  
costs for significant enhancements and upgrades for the expanded functionality of the SEI Wealth Platform. Included in the amount 
for 201 3 is a one-time contractual payment of $8.8 million to exercise a conversion option in lieu of periodic fee payments 
pertaining to a software license for functionality utilized by the Platform.

•  Capital expenditures. Our capital expenditures in 201 4, 201 3 and 201 2 primarily include purchased software and equipment for 
our data center operations. Our expenditures in 201 4 also include $8.5 million related to the construction of an additional building 
at our corporate headquarters which was completed during the third quarter. Our expenditures in 201 2 include a purchase of  
$1 0.0 million for specific front office client management technology. In 201 5, we intend to relocate our London operations to a  
new facility. The total cost of the improvements to this facility is estimated to be at least $1 3.2 million and is expected to be 
completed during the third quarter of 201 5. 

2 8

•  The sale of our subsidiary. The sale of SEI AK was completed during the first quarter of 201 3. Prior to the transaction, cash and 

cash equivalents held in the accounts of SEI AK were not considered free and immediately available. As a result of the sale, the net 
cash proceeds received significantly increased our amount of cash considered free and immediately accessible for other general 
corporate purposes. The net effect of the cash received from the sale of SEI AK and the transfer of cash balances to the owners is 
reflected in Sale of subsidiary, net of cash transferred. Additional information pertaining to the sale is presented in Note 1 5 to the 
Consolidated Financial Statements.

Cash flows from financing activities decreased $62.0 million in 201 4 compared to 201 3 and increased $80.1  million in 201 3 compared 
to 201 2. Net cash used in financing activities includes:
•  The repurchase of our common stock. Our Board of Directors has authorized the repurchase of our common stock through 

multiple authorizations. Currently, there is no expiration date for our common stock repurchase program. The following table lists 
information regarding repurchases of our common stock during 201 4, 201 3 and 201 2:

Year

2014
201 3
201 2

Total Number of 
Shares Repurchased

Average Price Paid 
per Share

$

7,888,000
6,789,000
7,528,000

$

35.29
30.92
20.62

Total Cost

278,357
209,942
1 55,264

•  Proceeds from the issuance of our common stock. We received $1 04.9 million, $66.4 million and $49.4 million in proceeds from 

the issuance of our common stock during 201 4, 201 3 and 201 2, respectively. The increase in proceeds in 201 4 and 201 3 is 
primarily attributable to higher levels of stock option exercise activity.

•  Dividend payments. Our cash dividends paid during 201 4, 201 3 and 201 2 were as follows:

Year

2014
201 3
201 2

Cash Dividends Paid

Cash Dividends Paid per Share

$

$

74,294
34,400
1 35,335

0.44
0.20
0.78

The decrease in dividends paid in 201 3 was due to a special cash dividend of $0.32 per share paid in 201 2 and the payment  
date of the regular semi-annual dividend declared in December 201 2 occurring in the calendar year as compared to the payment 
date of the semi-annual dividend declared in December 201 3 which occurred in January of 201 4.
Our Board of Directors declared a semi-annual cash dividend of $0.24 per share on December 9, 201 4. The dividend was paid on 
January 6, 201 5 for a total of $40.2 million. 

We believe our operating cash flow, available borrowing capacity, and existing cash and cash equivalents should provide adequate 
funds for ongoing operations; continued investment in new products and equipment; our common stock repurchase program and 
future dividend payments.

Significant Arrangement
On October 1 , 201 2, we provided an unsecured guaranty of the obligations of LSV Employee Group III to The PrivateBank and Trust 
Company and certain other lenders. We entered into this agreement in order to facilitate the acquisition of certain partnership 
interests of LSV by LSV Employee Group III. Additional information pertaining to the agreement is presented in Note 2 to the 
Consolidated Financial Statements.

Contractual Obligations and Contingent Obligations
As of December 31 , 201 4, the Company is obligated to make payments in connection with its lines of credit, operating leases, 
maintenance contracts and other commitments in the amounts listed below. The Company has no unrecorded obligations other than 
the items noted in the following table:

Line of credit (a)
Operating leases and maintenance agreements (b)
Other commitments (c)
Total

$

$

Total

950
60,848
4,757
66,555

$

$

201 5

456
3,779
4,757
8,992

$

$

201 6

456
3,023
—
3,479

$

$

201 7 to 
201 8

38
1 0,445
—
1 0,483

201 9 and 
thereafter

—
43,601
—
43,601

$

$

(a)  Amounts include estimated commitment fees for our credit facility. See Note 7 to the Consolidated Financial Statements.
(b)  See Note 1 1  to the Consolidated Financial Statements.
(c)  Amount includes the portion of uncertain tax liabilities classified as a current liability. The actual cash payment associated with 

these commitments may differ. See Note 1 2 to the Consolidated Financial Statements.

2 9

 
Critical Accounting Policies
The accompanying consolidated financial statements and supplementary information were prepared in accordance with accounting 
principles generally accepted in the United States. Our significant accounting policies are discussed in Note 1  to the Consolidated 
Financial Statements. Inherent in the application of many of these accounting policies is the need for management to make estimates 
and judgments in the determination of certain revenues, expenses, assets and liabilities. Materially different financial results can occur 
as circumstances change and additional information becomes known. We believe that the following accounting policies require 
extensive judgment by our management to determine the recognition and timing of amounts recorded in our financial statements.

Revenue Recognition:
Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an 
agreement exists, the fee is fixed or determinable, and collectibility is reasonably assured. Cash received by us in advance of the 
performance of services is deferred and recognized as revenue when earned. Our principal sources of revenues are: (1 ) asset 
management, administration and distribution fees calculated as a percentage of the total average daily net assets under management 
or administration; (2) information processing and software servicing fees that are recurring in nature and earned based upon the 
number of trust accounts being serviced and non-recurring project fees that are earned based upon contractual agreements related 
to client implementations; and (3) transaction-based fees for providing trade-execution services. Our revenues are based on 
contractual arrangements. Certain portions of our revenues require management’s consideration of the nature of the client 
relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made 
to vendors for certain services related to the product or service offering.

Computer Software Development Costs:
We utilize internally developed computer software as part of our product offerings. In the development of a new software product, 
substantial consideration must be given by management to determine whether costs incurred are research and development costs,  
or internal software development costs eligible for capitalization. Management must consider a number of different factors during 
their evaluation of each computer software development project that includes estimates and assumptions. Costs considered to be 
research and development are expensed as incurred. After meeting specific requirements, internal software development costs are 
capitalized as incurred. The capitalization and ongoing assessment of recoverability of software development costs requires 
considerable judgment by management with respect to certain external factors, including, but not limited to, technological and 
economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product  
is ready for its intended use. 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.

We evaluate the carrying value of our capitalized software when circumstances indicate the carrying value may not be recoverable. 
The review of capitalized software for impairment requires significant assumptions about operating strategies, underlying 
technologies utilized, and external market factors. Our capitalized software was developed using mainstream technologies that  
are industry standards and are based on technology developed by multiple vendors that are significant industry leaders. External 
market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in  
the target market and governmental regulations.

Income Tax Accounting:
We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the 
amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the 
expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, 
and for operating losses and tax credit carryforwards. Management must make assumptions, judgments and estimates to determine 
our current provision for income taxes and also our deferred tax assets and liabilities and any valuation allowance to be recorded 
against a deferred tax asset.

Our assumptions, judgments and estimates relative to the current provision for income taxes take into account current tax laws,  
our interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax 
authorities. We have established reserves for income taxes to address potential exposures involving tax positions that could be 
challenged by tax authorities. Although we believe our assumptions, judgments and estimates are reasonable, changes in tax laws  
or our interpretation of tax laws and the resolution of any future tax audits could significantly impact the amounts provided for income 
taxes in our consolidated financial statements.

Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount 
and category of future taxable income, such as income from operations or capital gains income. Actual operating results and the 
underlying amount and category of income in future years could render our current assumptions, judgments and estimates of 

3 0

recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause our actual 
income tax obligations to differ from our estimates, thus materially impacting our financial position and results of operations.

Stock-Based Compensation:
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over 
the requisite service period, which is the vesting period. We currently use the Black-Scholes option pricing model to determine the fair 
value of stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing 
model is affected by our stock price as well as various other assumptions. These assumptions include our expected stock price 
volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and 
expected dividends. We are required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if 
actual forfeitures differ from those estimates. The amount of stock-based compensation expense that is recognized in a given period 
is dependent upon management’s estimate of when the earnings per share targets are expected to be achieved. If this estimate 
proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer 
period, or reversed. We currently base our expectations for these assumptions from historical data and other applicable factors. 
These expectations are subject to change in future periods.

The assessment of critical accounting policies is not meant to be an all-inclusive discussion of the uncertainties to financial  
results that can occur from the application of the full range of our accounting policies. Materially different financial results could  
occur in the application of other accounting policies as well. Also, materially different results can occur upon the adoption of new 
accounting standards.

Item 7A. 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 “Changes in interest rates may affect the value of our fixed-income investment securities” in Item 1 A “Risk Factors” and 
under the caption “Sensitivity of our revenues and earnings to capital market fluctuations” in Item 7 “Management’s Discussion  
and Analysis of Financial Condition and Results of Operations.”

Item 8. Financial Statements and Supplementary Data.

Index to Financial Statements:

Reports of Independent Registered Public Accounting Firms

Consolidated Balance Sheets — December 31 , 201 4 and 201 3

Consolidated Statements of Operations — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Comprehensive Income — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Changes in Equity — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Cash Flows — For the years ended December 31 , 201 4, 201 3 and 201 2

Notes to Consolidated Financial Statements

Schedule II — Valuation and Qualifying Accounts and Reserves — For the years ended December 31 , 201 4, 201 3 and 201 2

Page

32

35

36

37

38

39

4 1

64

All other schedules are omitted because they are not applicable, or not required, or because the required information is included in 
the Consolidated Financial Statements or notes thereto.

3 1

 
Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders 
SEI Investments Company:
We have audited the accompanying consolidated balance sheet of SEI Investments Company and subsidiaries as of December 31 , 
201 4, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for the year 
ended December 31 , 201 4. In connection with our audit of the consolidated financial statements, we also have audited financial 
statement Schedule II referred to in Item 1 5(2) in this Form 1 0-K. These consolidated financial statements and financial statement 
schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated 
financial statements and financial statement schedule based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements 
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures  
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by 
management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable  
basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of 
SEI Investments Company and subsidiaries as of December 31 , 201 4, and the results of their operations and their cash flows for the 
year ended December 31 , 201 4, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related 
financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents 
fairly, in all material respects, the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),  
SEI Investments Company’s internal control over financial reporting as of December 31 , 201 4, based on criteria established in  
Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission 
(COSO), and our report dated February 23, 201 5 expressed an unqualified opinion on the effectiveness of SEI Investments Company’s 
internal control over financial reporting.

/s/ KPMG LLP

Philadelphia, Pennsylvania 
February 23, 201 5 

3 2

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders 
SEI Investments Company:
We have audited SEI Investments Company’s internal control over financial reporting as of December 31 , 201 4, based on criteria 
established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway 
Commission (COSO). SEI Investments Company’s management is responsible for maintaining effective internal control over financial 
reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying 
Management’s Report on Internal Control over Financial Reporting (Item 9A). Our responsibility is to express an opinion on SEI 
Investments Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those 
standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over 
financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over 
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating 
effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we 
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability  
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted 
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1 ) pertain  
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets  
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial 
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are 
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable 
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could 
have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes 
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, SEI Investments Company maintained, in all material respects, effective internal control over financial reporting as of 
December 31 , 201 4, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of 
Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the 
consolidated balance sheet of SEI Investments Company and subsidiaries as of December 31 , 201 4, and the related consolidated 
statements of operations, comprehensive income, changes in equity, and cash flows for the year ended December 31 , 201 4, and our 
report dated February 23, 201 5 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG LLP

Philadelphia, Pennsylvania 
February 23, 201 5

3 3

 
Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders 
of SEI Investments Company:
In our opinion, the consolidated balance sheet as of December 31 , 201 3 and the related consolidated statements of operations, 
comprehensive income, changes in equity and cash flows for each of the two years in the period ended December 31 , 201 3, present 
fairly, in all material respects, the financial position of SEI Investments Company and its subsidiaries at December 31 , 201 3, and the 
results of their operations and their cash flows for each of the two years in the period ended December 31 , 201 3, in conformity with 
accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule 
for each of the two years in the period ended December 31 , 201 3 presents fairly, in all material respects, the information set forth 
therein when read in conjunction with the related consolidated financial statements. These financial statements and financial 
statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these 
financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in 
accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we 
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing 
the accounting principles used and significant estimates made by management, and evaluating the overall financial statement 
presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Philadelphia, PA 
February 27, 201 4

3 4

Consolidated Balance Sheets 

SEI Investments Company and Subsidiaries

(In thousands)

Assets

December 31 ,

201 4

201 3

Current Assets:
Cash and cash equivalents
Restricted cash
Receivables from regulated investment companies
Receivables, net of allowance for doubtful accounts of $784 and $651
Securities owned
Other current assets

Total Current Assets

Property and Equipment, net of accumulated depreciation of $241 ,295 

and $220,064

Capitalized Software, net of accumulated amortization of $21 8,51 4 and 

$1 80,062

Investments Available for Sale
Investments in Affiliated Funds, at fair value
Investment in Unconsolidated Affiliates
Other Assets, net
Total Assets

Liabilities and Equity Current Liabilities:

Accounts payable
Accrued liabilities
Deferred income taxes, net
Deferred revenue

Total Current Liabilities

Deferred Income Taxes
Other Long-term Liabilities

Total Liabilities

Commitments and Contingencies
Shareholders’ Equity:

Series Preferred stock, $.05 par value, 50 shares authorized;  

no shares issued and outstanding

Common stock, $.01  par value, 750,000 shares authorized;  

1 66,688 and 1 69,242 shares issued and outstanding

Capital in excess of par value
Retained earnings
Accumulated other comprehensive (loss) income, net

Total Shareholders’ Equity

Total Liabilities and Equity

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

$

$

$

$

667,446 $
5,801
48,393
194,419
21,175
18,193
955,427

578,273
5,500
39,364
1 86,664
21 ,1 33
1 6,1 66
847,1 00

125,535

1 1 8,995

309,040
77,609
4,523
54,290
16,451
1,542,875 $

31 2,61 5
83,323
4,849
61 ,370
1 0,91 7
1 ,439,1 69

10,588 $
207,429
1,414
1,749
221,180
63,755
10,327
295,262

1 6,235
1 88,1 23
1 ,653
1 ,977
207,988
66,572
8,607
283,1 67

—

—

1,667
834,615
420,226
(8,895)
1,247,613
1,542,875 $

1 ,692
721 ,21 9
431 ,604
1 ,487
1 ,1 56,002
1 ,439,1 69

3 5

 
Consolidated Statements of Operations 

SEI Investments Company and Subsidiaries

(In thousands, except per-share data)

Year Ended December 31 ,

Revenues:

Asset management, administration and distribution fees
Information processing and software servicing fees
Transaction-based and trade execution fees

Total revenues
Expenses:

Subadvisory, distribution and other asset management costs
Software royalties and other information processing costs
Brokerage commissions
Compensation, benefits and other personnel
Stock-based compensation
Consulting, outsourcing and professional fees
Data processing and computer related
Facilities, supplies and other costs
Amortization
Depreciation
Total expenses
Income from operations
Net gain from investments
Interest and dividend income
Interest expense
Equity in earnings of unconsolidated affiliates
Gain on sale of subsidiary
Other income
Income before income taxes
Income taxes
Net income
Less: Net income attributable to the noncontrolling interest
Net income attributable to SEI Investments Company

Basic earnings per common share
Shares used to compute basic earnings per share
Diluted earnings per common share
Shares used to compute diluted earnings per share
Dividends declared per common share

201 4

201 3

201 2

$

948,932 $
285,463
31,610
1,266,005

831 ,720 $
261 ,691
32,721
1 ,1 26,1 32

149,791
33,522
23,002
376,873
13,463
136,818
52,512
66,113
38,679
22,448
913,221
352,784
614
3,354
(458)
127,786
5,582
—
489,662
170,949
318,713 $

—

318,713 $

1.89 $

168,246

1.85 $

172,565

0.46 $

1 21 ,989
31 ,255
24,649
357,453
37,865
1 31 ,399
51 ,401
64,61 3
34,602
22,497
877,723
248,409
659
3,248
(535 )
1 1 8,076
22,1 1 2
43,429
435,398
1 46,924
288,474 $
(350 )
288,1 24 $

1 .68 $

1 71 ,561

1 .64 $

1 75,71 8

0.42 $

$

$

$

$

$

723,630
236,1 90
32,702
992,522

1 06,048
26,722
23,889
335,296
1 5,736
1 09,828
46,61 7
60,976
33,258
22,586
780,956
21 1 ,566
1 4,067
5,696
(504 )
98,671
—
—
329,496
1 21 ,462
208,034
(1 ,1 86 )
206,848

1 .1 9
1 74,295
1 .1 8
1 75,872
0.63

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

3 6

Consolidated Statements of Comprehensive Income  SEI Investments Company and Subsidiaries

(In thousands)

Year Ended December 31 ,

Net income

Other comprehensive (loss) gain, net of tax:
Foreign currency translation adjustments
Unrealized holding (loss) gain on investments:

Unrealized holding gains (losses) during the period, net of income 

taxes of $(592), $(954) and $86

Less: reclassification adjustment for gains realized in net income,  

net of income taxes of $31 9, $1 70 and $50
Total other comprehensive (loss) gain, net of taxes

Comprehensive income

Less: Comprehensive loss (income) attributable to noncontrolling interest

201 4

201 3

201 2

$

318,713 $

288,474 $

208,034

(10,189)

(3,760 )

5,904

441

(1 ,1 49 )

341

(634)
(10,382)
308,331
—

Comprehensive income attributable to SEI Investments

$

308,331 $

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

(294 )
(5,203 )
283,271
1 01
283,372 $

(86 )
6,1 59
21 4,1 93
(3,006 )
21 1 ,1 87

3 7

 
Consolidated Statements of Changes in Equity 

SEI Investments Company and Subsidiaries

(In thousands, except per-share data)

Year Ended December 31 ,

201 4

201 3

201 2

Shares of Common Stock
Beginning balance
Purchase and retirement of common stock
Issuance of common stock under the employee stock purchase plan
Issuance of common stock upon exercise of stock options
Ending balance

Common Stock
Beginning balance
Purchase and retirement of common stock
Issuance of common stock under the employee stock purchase plan
Issuance of common stock upon exercise of stock options
Ending balance

Capital In Excess of Par Value
Beginning balance
Purchase and retirement of common stock
Issuance of common stock under the employee stock purchase plan
Issuance of common stock upon exercise of stock options
Stock-based compensation
Tax benefit on stock options exercised
Ending balance

Retained Earnings
Beginning balance
Net income attributable to SEI Investments Company
Purchase and retirement of common stock
Dividends declared ($0.46, $0.42 and $0.63 per share)
Ending balance

Accumulated Other Comprehensive (Loss) Income
Beginning balance
Other comprehensive (loss) income
Ending balance

Total SEI Investments Shareholders’ Equity

Noncontrolling interest

Total Equity

169,242
(7,888)
73
5,261
166,688

1,692 $
(79)
1
53
1,667 $

721,219 $
(25,345)
2,197
102,646
13,463
20,435
834,615 $

431,604 $
318,713
(252,933)
(77,158)
420,226 $

1 72,220
(6,789 )
78
3,733
1 69,242

1 ,722 $
(68 )
1
37
1 ,692 $

624,305 $
(1 9,1 05 )
1 ,950
64,379
37,865
1 1 ,825
721 ,21 9 $

405,91 4 $
288,1 24
(1 90,769 )
(71 ,665 )
431 ,604 $

1 76,506
(7,528 )
1 05
3,1 37
1 72,220

1 ,765
(75 )
1
31
1 ,722

577,949
(1 9,370 )
1 ,794
47,61 3
1 5,736
583
624,305

443,702
206,848
(1 35,81 9 )
(1 08,81 7 )
405,91 4

1,487 $

(10,382)
(8,895) $

6,239 $
(4,752 )
1 ,487 $

1 ,900
4,339
6,239

1,247,613 $

1 ,1 56,002 $

1 ,038,1 80

— $

— $

1 9,1 49

1,247,613 $

1 ,1 56,002 $

1 ,057,329

$

$

$

$

$

$

$

$

$

$

$

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

3 8

Consolidated Statements of Cash Flows 

SEI Investments Company and Subsidiaries

(In thousands)

Year Ended December 31 ,

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating 

201 4

201 3

201 2

$

318,713 $

288,474 $

208,034

activities:
Depreciation
Amortization
Equity in earnings of unconsolidated affiliates
Distributions received from unconsolidated affiliate
Stock-based compensation
Provision for losses on receivables
Deferred income tax expense
Gain from sale of SEI AK
Net realized gains from investments
Change in other long-term liabilities
Change in other assets
Other
Change in current assets and liabilities:

Decrease (increase) in:

Restricted cash for broker-dealer operations
Receivables from regulated investment companies
Receivables
Other current assets
Increase (decrease) in:
Accounts payable
Accrued liabilities
Deferred revenue

Total adjustments
Net cash provided by operating activities

22,448
38,679
(127,786)
137,866
13,463
133
(3,330)
(5,582)
(614)
1,720
(5,886)
(2,439)

—
(9,029)
(7,888)
(2,027)

22,497
34,602
(1 1 8,076 )
1 37,1 04
37,865
(1 54 )
(22,825 )
(22,1 1 2 )
(659 )
1 ,575
600
(3,972 )

500
(8,280 )
(1 7,51 3 )
1 ,971

(6,283)
12,873
(228)
56,090
374,803 $

5,000
1 5,1 02
(475 )
62,750
351 ,224 $

$

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

22,586
33,258
(98,671 )
92,227
1 5,736
(1 1 9 )
(1 ,1 91 )
—
(1 4,067 )
(1 ,244 )
(61 9 )
6,680

—
(5,284 )
(30,852 )
(282 )

9,249
21 ,627
422
49,456
257,490

3 9

 
Consolidated Statements of Cash Flows 

SEI Investments Company and Subsidiaries

(In thousands)

Year Ended December 31 ,

Cash flows from investing activities:

Additions to restricted cash
Additions to property and equipment
Additions to capitalized software
Purchases of marketable securities
Prepayments and maturities of marketable securities
Sales of marketable securities
Purchases of other investments
Sale of subsidiary, net of cash transferred

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Purchase and retirement of common stock
Proceeds from issuance of common stock
Tax benefit on stock options exercised
Payment of dividends

Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

201 4

201 3

201 2

(301)
(28,469)
(34,877)
(56,754)
38,973
24,461
(2,000)
5,582
(53,385)

(275,788)
104,897
20,435
(74,294)
(224,750)

(7,495)

—
(1 6,351 )
(39,500 )
(57,560 )
40,257
7,31 7
(2,604 )
6,028
(62,41 3 )

(206,577 )
66,367
1 1 ,825
(34,400 )
(1 62,785 )

—

—
(23,070 )
(31 ,004 )
(33,662 )
53,352
54,830
(3,81 9 )
—
1 6,627

(1 57,543 )
49,439
583
(1 35,335 )
(242,856 )

—

31 ,261

Net increase in cash and cash equivalents

89,173

1 26,026

Cash and cash equivalents, beginning of year

578,273

452,247

420,986

Cash and cash equivalents, end of year

Interest paid
Income taxes paid

Non-cash financing activities

Dividends declared but not paid

$

$
$

$

667,446 $

458 $
151,250 $

578,273 $

458 $
1 63,834 $

452,247

367
1 1 3,1 60

40,178 $

37,31 4 $

—

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

4 0

Notes to Consolidated Financial Statements 

SEI Investments Company and Subsidiaries

(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 investment processing, investment management,  
and investment operations solutions to financial institutions, financial advisors, institutional investors, investment managers and 
ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and other various locations 
throughout the world. Investment processing solutions consist of application and business process outsourcing services, professional 
services and transaction-based services. Revenues from investment processing solutions are recognized in Information processing 
and software servicing fees on the accompanying Consolidated Statements of Operations, except for fees earned associated with 
trade execution services.

Investment management programs consist of mutual funds, alternative investments and separate accounts. These include a series  
of money market, equity, fixed-income and alternative investment portfolios, primarily in the form of registered investment companies. 
The Company serves as the administrator and investment advisor for many of these products. Revenues from investment management 
programs are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements 
of Operations.

Investment operations solutions offer investment managers support for traditional investment products such as mutual funds, 
collective investment trusts, exchange-traded funds, and institutional and separate accounts, by providing outsourcing services 
including fund and investment accounting, administration, reconciliation, investor servicing and client reporting. These solutions also 
provide support to managers focused on alternative investments who manage hedge funds, funds of hedge funds, private equity 
funds and real estate funds, across registered, partnership and separate account structures domiciled in the United States and 
overseas. Revenues from investment operations solutions are recognized in Asset management, administration and distribution  
fees on the accompanying Consolidated Statements of Operations.

Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which  
it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-
making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity 
through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments 
Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and  
SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated.

The Company accounts for investments in unconsolidated entities that are 20 percent to 50 percent owned or are 20 percent or less 
owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity 
method of accounting. Under this method of accounting, the Company’s interest in the net assets of unconsolidated entities is 
reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheet and its interest in the earnings 
or losses of unconsolidated entities is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated 
Statement of Operations.

Variable Interest Entities
The Company has involvement with various variable interest entities (VIE or VIEs). These VIEs consist of LSV Employee Group III, LLC 
(LSV Employee Group III) and investment products established for clients created in the form of various types of legal entity structures. 
According to the most recent accounting guidance issued by the Financial Accounting Standards Board (FASB), the determination of 
whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design, a company’s 
ability to direct the activities of the entity that most significantly impact the entity’s economic performance, and whether a company  
is obligated to absorb losses or receive benefits that could be potentially significant to the entity. The guidance requires ongoing 
reassessments of whether an enterprise is the primary beneficiary of a VIE and requires disclosures about an enterprises involvement 
in VIEs.

The FASB deferred the accounting guidance for certain types of investment entities. The deferral allows asset managers that have  
no obligation to fund potentially significant losses of an investment entity to continue to apply the previous guidance to investment 
entities that have attributes of entities defined in the “Investment Company Guide.” The deferral applies to many mutual funds, hedge 
funds, private equity funds, venture capital and certain other types of entities. Also, money market funds subject to rule 2a-7 of the 

4 1

 
Investment Company Act of 1 940 qualify for deferral. However, the deferral does not apply to the new disclosure requirements.  
All of the Company’s investment products where the Company is the sponsor and/or investment manager that are VIEs qualify for  
the deferral; therefore, the Company will continue to apply the previous guidance for the consolidation of VIEs (See Note 3).

Management’s Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires 
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during 
the reporting period. Actual results could differ from those estimates.

Revenue Recognition
The Company’s principal sources of revenues are: (1 ) asset management, administration and distribution fees earned based upon  
a contractual percentage of net assets under management or administration; (2) information processing and software servicing fees 
that are either recurring and primarily earned based upon the number of trust accounts being serviced or non-recurring and based 
upon project-oriented contractual agreements related to client implementations; and (3) transaction-based fees for providing 
trade-execution services. The Company’s revenues are based on contractual arrangements. Revenues are recognized in the  
periods in which the related services are performed provided that persuasive evidence of an agreement exists, the fee is fixed or 
determinable, and collectibility is reasonably assured. Cash received by the Company in advance of the performance of services  
is deferred and recognized as revenue when earned. Reimbursements received for out-of-pocket expenses incurred are recorded  
as revenue. Certain portions of the Company’s revenues require management’s consideration of the nature of the client relationship  
in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to suppliers 
for certain services related to the product or service offering.

Cash and Cash Equivalents
The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. 
Cash and cash equivalents include $435,268 and $387,201  at December 31 , 201 4 and 201 3, respectively, primarily invested in 
SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are considered Level 1  assets.

Restricted Cash
Restricted cash includes $5,000 at December 31 , 201 4 and 201 3 segregated for regulatory purposes related to trade-execution 
services conducted by SIEL. Restricted cash also includes $500 at December 31 , 201 4 and 201 3 segregated in special reserve 
accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission 
for broker-dealers.

Allowances for Doubtful Accounts
The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is 
based on historical collection experience and a review of the current status of trade accounts receivable.

Concentration of Credit Risk
Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents  
and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and 
high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. 
Concentrations of credit risk with respect to our receivables are limited due to the large number of clients and their dispersion across 
geographic areas. No single group or customer represents greater than ten percent of total accounts receivable.

Property and Equipment
Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor 
replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of 
construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the 
related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results  
of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for 
financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets 
are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where 
appropriate. Buildings and building improvements are depreciated over 25 to 39 years. Equipment, purchased software and furniture 
and fixtures have useful lives ranging from 3 to 5 years. Amortization of leasehold improvements is computed using the straight line 
method over the shorter of the remaining lease term or the estimated useful lives of the improvements.

42

Marketable Securities
The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet 
date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded 
price of each security at the balance sheet date. Unrealized gains and losses, net of income taxes, are reported as a separate 
component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable 
securities through current period earnings due to specialized accounting practices related to investments by broker-dealers.  
The Company records its investments in funds sponsored by LSV on the accompanying Consolidated Balance Sheets at fair value. 
Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific 
identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 6).

The Company evaluates the realizable value of its marketable securities on a quarterly basis. In the event that the carrying value of  
an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is 
recorded and a new cost basis for the investment is established. Some of the factors considered in determining other-than-temporary 
impairment for equity securities include, but are not limited to, significant or prolonged declines in the fair value of the investments, 
the Company’s ability and intent to retain the investment for a period sufficient to allow the value to recover, and the financial 
condition of the investment. Some of the factors considered in determining other-than-temporary impairment for debt securities 
include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell 
the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even 
if there is no intent to sell the security.

Fair Value of Financial Instruments
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the 
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the 
measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of 
unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the 
Company to measure fair value:

Level 1  — Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1  assets primarily 
include investments in mutual funds sponsored by SEI that are quoted daily.

Level 2 — Observable inputs other than Level 1  prices, such as quoted prices for similar assets, quoted prices in markets that are  
not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of  
the assets or liabilities. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed 
securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial 
paper, and investment funds sponsored by LSV. The investments in GNMA mortgage-backed securities were purchased for the sole 
purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, 
SPTC. The investments in FHLB and other U.S. government agency short-term notes and investment grade commercial paper were 
purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate 
securities. The investment funds sponsored by LSV primarily invest in equity securities of non-U.S. developed nations which are 
traded in active markets.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets 
or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar 
techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The 
Company had no Level 3 financial assets at December 31 , 201 4 or 201 3.

The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of 
significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers 
between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur.

See Note 5 for information on related disclosures regarding fair value measurements.

Capitalized Software
Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the 
development stage of the software application. These costs include direct external and internal costs to design the software 
configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages 
of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are 
capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software 
development costs requires considerable judgment by management with respect to certain external factors, including, but not limited 
to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs 

4 3

 
begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product 
basis using the straight-line method over the estimated economic life of the product or enhancement.

The Company’s capitalized software development costs primarily relate to the further development of the SEI Wealth PlatformSM (the 
Platform). The initial version of the Platform was placed into service in July 2007. Further enhancements and upgrades will continue  
to occur. As of December 31 , 201 4, the net book value of the Platform was $309,040. The Company capitalized $34,877, $39,500 and 
$31 ,004 of software development costs during 201 4, 201 3 and 201 2, respectively. Included in the amount for 201 3 is a one-time 
contractual payment of $8,81 2 to exercise a conversion option in lieu of periodic fee payments pertaining to a software license for 
functionality utilized by the Platform.

The Platform has an estimated useful life of 1 5 years and a weighted average remaining life of 7.5 years. Amortization expense for  
the Platform was $38,357, $34,045 and $32,1 77 in 201 4, 201 3 and 201 2, respectively, and is included in Amortization expense  
on the accompanying Consolidated Statements of Operations. During 201 2, the Company decided to discontinue the use of specific 
functionality within the Platform and expensed the remaining net book value of $2,661  related to previously capitalized software 
development costs of the component. This cost is included in total amortization expense on the accompanying Consolidated 
Statements of Operations.

The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying  
value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions 
about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not 
limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental 
regulations. The Company did not recognize any impairment charges related to its capitalized software development costs in 201 4  
or 201 3.

Income Taxes
The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are 
recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing 
assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected 
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The components 
of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.

Foreign Currency Translation
The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s 
local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at 
the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during 
the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income.

Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they 
occur. There were no material gains or losses from exchange rate fluctuations in 201 4, 201 3 or 201 2.

Earnings Per Common Share
Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the 
weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by 
dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of 
common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period.

4 4

The calculations of basic and diluted earnings per share for 201 4, 201 3 and 201 2 are:

For the Year Ended December 31 , 201 4

Basic earnings per common share
Dilutive effect of stock options
Diluted earnings per common share

For the Year Ended December 31 , 201 3

Basic earnings per common share
Dilutive effect of stock options
Diluted earnings per common share

For the Year Ended December 31 , 201 2

Basic earnings per common share
Dilutive effect of stock options
Diluted earnings per common share

Net income attributable 
to SEI (Numerator)

Shares (Denominator)

Per-Share Amount

$

$

$

$

$

$

31 8,71 3
—
31 8,71 3

1 68,246,000
4,31 9,000
1 72,565,000

Net income attributable 
to SEI (Numerator)

Shares (Denominator)

288,1 24
—
288,1 24

1 71 ,561 ,000
4,1 57,000
1 75,71 8,000

Net income attributable 
to SEI (Numerator)

Shares (Denominator)

206,848
—
206,848

1 74,295,000
1 ,577,000
1 75,872,000

$

$

$

$

$

$

1 .89

1 .85

Per-Share Amount

1 .68

1 .64

Per-Share Amount

1 .1 9

1 .1 8

Employee stock options to purchase approximately 1 0,1 66,000, 7,736,000 and 1 3,202,000 shares of common stock, with an average 
exercise price per share of $30.00, $30.54 and $24.76, were outstanding during 201 4, 201 3 and 201 2, respectively, but not included 
in the computation of diluted earnings per common share because the option’s exercise price was greater than the average market 
price of the Company’s common stock or the performance conditions have not been satisfied or would have been satisfied if the 
reporting date was the end of the contingency period and the effect on diluted earnings per common share would have been 
anti-dilutive (See Note 8).

Stock-Based Compensation
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over 
the requisite service period, which is the vesting period. The Company uses historical data to estimate pre-vesting forfeitures and 
record stock-based compensation expense only for those awards that are expected to vest. The amount of stock-based compensation 
expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to 
be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be 
accelerated, spread out over a longer period, or reversed (See Note 8).

New Accounting Pronouncements
On May 28, 201 4, the FASB issued Accounting Standards Update No. 201 4-09, Revenue from Contracts with Customers (ASU 
201 4-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods 
or services to customers. ASU 201 4-09 also requires additional disclosure about the nature, amount, timing and uncertainty of 
revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets 
recognized from costs incurred to obtain or fulfill a contract. The updated standard permits the use of either the retrospective or 
cumulative effect transition method. Early adoption is not permitted. ASU 201 4-09 becomes effective for the Company during the first 
quarter 201 7. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard 
will have on its consolidated financial statements and related disclosures.

On February 1 8, 201 5, the FASB issued Accounting Standards Update No. 201 5-02, Consolidation (Topic 81 0) — Amendments to  
the Consolidation Analysis (ASU 201 5-02). The new guidance applies to entities in all industries and provides a new scope exception 
to registered money market funds and similar unregistered money market funds. It makes targeted amendments to the current 
consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. ASU 201 5-02 
becomes effective for the Company during the first quarter 201 6. The Company is currently evaluating the effect that the standard  
will have on its consolidated financial statements and related disclosures.

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

4 5

 
Note 2 — Investment in Unconsolidated Affiliates

LSV Asset Management
The Company has an investment in the general partnership 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 mutual funds. As of December 31 , 201 4, the Company’s total 
partnership interest in LSV was approximately 39.3 percent. The Company accounts for its interest in LSV using the equity method 
because of its less than 50 percent ownership. The Company’s interest in the net assets of LSV is reflected in Investment in 
unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in 
Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations.

At December 31 , 201 4, the Company’s total investment in LSV was $52,940. The Company’s proportionate share in the earnings of 
LSV was $1 40,21 1 , $1 1 8,983 and $99,989 in 201 4, 201 3 and 201 2, respectively. The Company receives partnership distributions from 
LSV on a quarterly basis. The Company received partnership distribution payments from LSV of $1 37,866, $1 37,1 04 and $92,227 in 
201 4, 201 3 and 201 2, respectively. The Company received an additional partnership distribution payment from LSV during 201 3 due 
to a change in the payment schedule. 

These tables contain condensed financial information of LSV:

Condensed Statement of Operations

Year ended December 31 ,

Revenues
Net income

Condensed Balance Sheets

December 31 ,

Current assets
Non-current assets
Total assets

Current liabilities
Partners’ capital
Total liabilities and partners’ capital

201 4

201 3

422,064 $
356,824 $

354,094 $
302,31 6 $

201 2

296,261
250,1 65

201 4

133,657 $
2,269
135,926 $

35,208 $
100,718
135,926 $

201 3

1 1 8,630
2,588
1 21 ,21 8

26,1 03
95,1 1 5
1 21 ,21 8

$
$

$

$

$

$

Guaranty Agreement with LSV Employee Group II
In April 201 1 , a group of existing employees of LSV formed a new limited liability company, LSV Employee Group II, and agreed to 
purchase a partnership interest of an existing LSV employee for $4,300 of which $3,655 was financed through a term loan with Bank 
of America, N.A. The Company provided an unsecured guaranty to the lenders of all the obligations of LSV Employee Group II. In May 
201 4, LSV Employee Group II made the final principal payment for the term loan and the Company has no further obligation related to 
the guaranty provided for LSV Employee Group II. 

Guaranty Agreement with LSV Employee Group III
In October 201 2, a group of existing employees of LSV formed a new limited liability company called LSV Employee Group III and 
agreed to purchase a portion of the partnership interest of existing LSV employees for $77,700, of which $69,930 was financed 
through syndicated term loan facilities contained in a credit agreement with The PrivateBank and Trust Company. LSV Employee 
Group III owns the purchased partnership interest. The Company provided an unsecured guaranty for $45,000 of the obligations of 
LSV Employee Group III to the lenders through a guaranty agreement. In addition, LSV agreed to provide an unsecured guaranty  
for the remaining $24,930 of the obligations of LSV Employee Group III to the lenders through a separate guaranty agreement.  
In September 201 4, LSV Employee Group III made the final principal payment related to the term loan guaranteed by LSV. 

With regard to the loan facility guaranteed by the Company, the lenders will have the right to seek payment from the Company in the 
event of a default by LSV Employee Group III. The loan facility has a five year term and will be repaid from the quarterly distributions of 
LSV. No principal payments were made by LSV Employee Group III on the loan facility guaranteed by the Company until the separate 
loan facility guaranteed by LSV was fully repaid.

4 6

The Company’s direct interest in LSV was unchanged as a result of this transaction. The Company has determined that LSV Employee 
Group III is a VIE; however, the Company is not considered the primary beneficiary because it does not have the power to direct the 
activities that most significantly impact the economic performance of LSV Employee Group III either directly or through any financial 
responsibility from the guaranty.

As of January 30, 201 5, the remaining unpaid principal balances of the term loan guaranteed by the Company was $38,658.  
The Company, in its capacity as guarantor, currently has no obligation of payment relating to the term loan of LSV Employee Group III 
and, furthermore, fully expects that LSV Employee Group III will meet all of their future obligations regarding the term loan.

Investment in Gao Fu Limited
The Company has an investment in Gao Fu, a wealth services firm based in Shanghai, China. The Company accounts for its interest in 
Gao Fu using the equity method. As of December 31 , 201 4, the Company owns approximately 27.6 percent of the outstanding voting 
stock of Gao Fu. The Company’s interest in the net assets of Gao Fu is reflected in Investment in unconsolidated affiliates on the 
accompanying Consolidated Balance Sheets and its interest in the gains and losses of Gao Fu is reflected in Equity in earnings of 
unconsolidated affiliates on the accompanying Consolidated Statements of Operations.

The Company’s proportionate share in the losses of Gao Fu was $1,159, $907 and $1,318 in 2014, 2013 and 2012, respectively. The 
Company’s investment in Gao Fu resulted from a series of cash purchases of common stock between 2011 and 2013 which, in total, 
amounted to $13,000. In June and December of 2014, the Company funded an aggregate of $3,000 of convertible loans to Gao Fu.  
The June 2014 convertible loan agreement contains specific revenue and net income targets for Gao Fu to achieve by December 31, 
2014. In December 2014, the Company conducted a review of the financial statements of Gao Fu and determined that the achievement 
of such performance targets as stipulated in the June 2014 convertible loan agreement was unlikely. As a result, the Company wrote 
down its investment in Gao Fu to its net realizable value based on its ownership percentage of the remaining net assets of the firm and 
recognized an impairment charge of $11,266 during the three months ended December 31, 2014. The impairment charge is reflected in 
Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. 

Note 3 — Variable Interest Entities — Investment Products

The Company has 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. 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.

An entity that lacks decision-making rights is a VIE. In some circumstances, the Manager or Trustee of the Company’s investment 
products controls the governing decisions about the investment activities with respect to the ongoing operations of the investment 
products without the equity investors possessing the right to remove the Manager or Trustee. Therefore, the equity investors, as a 
group, do not have the ability to make decisions that have an impact on the ongoing activities of such investment products. 
Consequently, some of the Company’s investment products have been determined to be VIEs at inception.

The VIEs are marketed with investment objectives to generate positive returns; however, the nature of such investments exposes the 
investors to the risk that the value of the VIEs may increase or decrease. The purpose and design of the VIEs are to achieve the 
investment objective by implementing strategies which are designed to minimize potential losses; however, there is no assurance 
given that these strategies will be successful.

The Company does not have a significant equity investment in any of the VIEs and does not have an obligation to enter into any 
guarantee agreements with the VIEs. The fees paid to the decision maker of a VIE are considered to be variable interests if the 
decision maker is not subject to substantive kick-out rights. The fees paid to the Company represent a variable interest when the 
decision maker is not subject to substantive kick-out rights.

The Company is not the primary beneficiary of the VIEs because the expected fees and the expected return on any investment into 
the VIE by the Company relative to the expected returns of the VIE to the equity investor holders does not approach 50 percent of the 
expected losses or gains of the VIEs. Therefore, the Company is not required to consolidate any investment products that are VIEs into 
its financial statements. The Company’s variable interest in the VIEs, which consists of management fees and in some situations, seed 
capital, would not be considered a significant variable interest.

The risks to the Company associated with its involvement with any of the investment products that are VIEs are limited to the  
cash flows received from the revenue generated for asset management, administration and distribution services and any equity 
investments in the VIEs. Both of these items are immaterial. The Company has no other financial obligation to the VIEs.

Amounts relating to fees due from the VIEs included in Receivables and amounts relating to equity investments in the VIEs included in 
Investments Available for Sale on the Company’s Consolidated Balance Sheets are immaterial to the total current assets of the Company.

4 7

 
Note 4 — Composition of Certain Financial Statement Captions

Receivables
Receivables on the accompanying Consolidated Balance Sheets consist of:

Trade receivables
Fees earned, not billed
Other receivables

Less: Allowance for doubtful accounts
Receivables, net

201 4

48,394 $
139,038
7,771
195,203
(784)
194,419 $

$

$

201 3

44,502
1 28,248
1 4,565
1 87,31 5
(651 )
1 86,664

Fees earned, not billed represents receivables 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.

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

Buildings
Equipment
Land
Purchased software
Furniture and fixtures
Leasehold improvements
Construction in progress

Less: Accumulated depreciation
Property and Equipment, net

201 4

149,890 $
78,266
9,997
104,964
16,944
5,675
1,094
366,830
(241,295)
125,535 $

$

$

201 3

1 38,426
70,1 1 7
9,929
96,268
1 7,060
4,670
2,589
339,059
(220,064 )
1 1 8,995

Depreciation expense related to property and equipment for 201 4, 201 3 and 201 2 was $22,448, $22,497 and $22,586, respectively.

Other Assets
Other assets consist of long-term prepaid expenses, deposits, other investments at cost and various other assets. Amortization 
expense for certain other assets for 201 4 and 201 3 was $227 and for 201 2 was $61 1 . 

Accrued Liabilities
Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of:

Accrued employee compensation
Accrued employee benefits and other personnel
Accrued consulting, outsourcing and professional fees
Accrued sub-advisory, distribution and other asset management fees
Accrued dividend payable
Other accrued liabilities
Accrued liabilities

201 4

73,269 $
6,482
18,915
31,913
40,178
36,672
207,429 $

$

$

201 3

69,256
9,647
1 9,31 1
25,01 8
37,31 4
27,577
1 88,1 23

4 8

Note 5 — Fair Value Measurements

The fair value of the Company’s financial assets and liabilities 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.  
The fair value of the Company’s Level 2 financial assets consist of GNMA mortgage-backed securities held by SPTC, FHLB and other 
U.S. government agency short-term notes and investment grade commercial paper held by SIDCO, and investment funds sponsored 
by LSV. 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 as a limited-purpose federal thrift subsidiary and have maturity dates which range  
from 2020 to 2043.

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. As a practical expedient, the Company relies on the net asset values (NAVs) of the 
investment funds sponsored by LSV as the fair value. 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 Company had no Level 3 financial assets 
or liabilities at December 31 , 201 4 or 201 3. 

Valuation of GNMA, Other U.S. Government Agency Securities and Investment Grade Commercial Paper
All of the Company’s investments in GNMA, FHLB and other U.S. government agency securities and investment grade commercial 
paper are held in accounts at well-established financial institutions. The Company’s selection of a financial institution for the purpose 
of purchasing securities considered a number of various factors including, but not limited to, securities pricing policies and procedures 
utilized by that financial institution. Each financial institution utilizes the services of independent pricing vendors. These vendors  
utilize evaluated and industry accepted pricing models that vary by asset class and incorporate available trade, bid and other market 
information to determine the fair value of the securities. The market inputs, listed in approximate order of priority, include: benchmark 
yields, reported trade, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference 
data. The Company evaluated the information regarding the pricing methodologies and processes utilized by the independent pricing 
vendors during the selection process of the financial institution. The Company analyzed this information for the purpose of classifying 
the securities into the appropriate level within the fair value hierarchy and to ensure that each pricing model for each asset class 
provided the fair value of those specific securities in accordance with generally accepted accounting principles. The Company 
continually monitors the price of each security for any unanticipated deviations from the previously quoted price or deviations from 
anticipated changes in a security’s price based upon an assessment of market factors and other factors relative to a specific issue 
expected to affect a security’s price. In the event a security price changed in excess of management’s pre-established tolerance 
levels, additional analysis is conducted which may include the comparison of the security’s price as determined by other independent 
pricing vendors. The Company’s investments in GNMA, FHLB and other U.S. government agency securities and investment grade 
commercial paper have been recorded at the prices provided by the independent pricing vendor without adjustment.

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

December 31 , 201 4

Fair Value Measurements at Reporting Date Using

Assets
Equity available-for-sale securities
Fixed-income available-for-sale securities
Fixed income securities owned
Investment funds sponsored by LSV

Total

1 1 ,588
66,021
21 ,1 75
4,523
1 03,307

$

$

$

$

Quoted Prices in 
Active Markets for 
Identical Assets  
(Level 1 )

Significant Other 
Observable Inputs  
(Level 2)

1 1 ,588
—
—
—
1 1 ,588

$

$

—
66,021
21 ,1 75
4,523
91 ,71 9

4 9

 
December 31 , 201 3

Fair Value Measurements at Reporting Date Using

Assets
Equity available-for-sale securities
Fixed-income available-for-sale securities
Fixed income securities owned
Investment funds sponsored by LSV

Total

1 1 ,633
71 ,690
21 ,1 33
4,849
1 09,305

$

$

$

$

Quoted Prices in 
Active Markets for 
Identical Assets  
(Level 1 )

Significant Other 
Observable Inputs  
(Level 2)

1 1 ,633
—
—
4,849
1 6,482

$

$

—
71 ,690
21 ,1 33
—
92,823

Note 6 — Marketable Securities

Investments Available For Sale
Investments available for sale classified as non-current assets consist of:

At December 31 , 201 4

SEI-sponsored mutual funds
Equities and other mutual funds
Debt securities

At December 31 , 201 3

SEI-sponsored mutual funds
Equities and other mutual funds
Debt securities

$

$

$

$

Cost

8,685
2,695
64,333
75,71 3

Cost

7,61 2
2,61 5
71 ,280
81 ,507

Gross Unrealized 
Gains

Gross Unrealized 
(Losses)

$

$

$

$

1 34
1 69
1 ,688
1 ,991

Gross Unrealized 
Gains

1 ,242
1 64
41 0
1 ,81 6

$

$

$

$

(95 )
—
—
(95 )

Gross Unrealized 
(Losses)

—
—
—
—

$

$

$

$

Fair Value

8,724
2,864
66,021
77,609

Fair Value

8,854
2,779
71 ,690
83,323

Net unrealized holding gains at December 31 , 201 4 and 201 3 were $1 ,1 93 (net of income tax expense of $703) and $1 ,386 (net of 
income tax expense of $430), respectively. These net unrealized gains are reported as a separate component of Accumulated other 
comprehensive (loss) income on the accompanying Consolidated Balance Sheets.

There were gross realized gains of $1 ,401  and gross realized losses of $448 from available-for-sale securities during 201 4. In 201 3, 
there were gross realized gains of $1 ,236 and gross realized losses of $772 from available-for-sale securities. There were no material 
gross realized gains or losses from available-for-sale securities during 201 2. Gains and losses from available-for-sale securities, 
including amounts reclassified from accumulated comprehensive income, are reflected in Net gain from investments on the 
accompanying Consolidated Statements of Operations.

Investments in Affiliated Funds
The Company has an investment related to the startup of investment 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 gain from investments on the accompanying Consolidated Statements of Operations.

The investment primarily consists of U.S. dollar denominated funds that invests in equity securities of Canadian, Australian and 
Japanese companies. The underlying securities held by the funds are translated into U.S. dollars within the funds. The funds had a  
fair value of $4,523 and $4,849 at December 31 , 201 4 and 201 3, respectively. The Company recognized losses of $326 and gains  
of $1 43 and $1 ,004 from the change in fair value of the funds during 201 4, 201 3 and 201 2, respectively. 

5 0

Securities Owned
The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency and commercial paper 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 $21 ,1 75 and $21 ,1 33 at December 
31 , 201 4 and 201 3, respectively. There were no material net gains or losses from the change in fair value of the securities during 
201 4, 201 3 and 201 2.

Note 7 — Line of Credit

On February 2, 201 2, the Company entered into a five-year $300,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, 
National Association, and a syndicate of other lenders. The Credit Facility is scheduled to expire in February 201 7, 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 1 .25 percent above the London Interbank Offer Rate (LIBOR). There is also a commitment fee equal to 0.1 5 percent per 
annum on the daily unused portion of the facility. The aggregate amount of the Credit Facility may be increased by an additional 
$1 00,000 under certain conditions set forth in the agreement. The Credit Facility contains covenants that restrict the ability of the 
Company to engage in mergers, consolidations, asset sales, investments, transactions with affiliates, or to incur liens, 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. None of the covenants of the Credit Facility negatively affect the 
Company’s liquidity or capital resources. Both the interest rate and commitment fee prices may increase if the Company’s leverage 
ratio reaches certain levels. 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 Credit Facility may be terminated. The Company had no borrowings through the Credit Facility 
at December 31 , 201 4 or 201 3. The Company was in compliance with all covenants of the Credit Facility during 201 4.

The Company incurred $458 during 201 4 and 201 3 and $585 during 201 2 in commitment fees related to the Credit Facility which are 
reflected in Interest expense on the accompanying Consolidated Statements of Operations.

Note 8 — Shareholders’ Equity

Stock-Based Compensation
On March 1 9, 201 4, the Company’s Board of Directors approved the 201 4 Omnibus Equity Compensation Plan (the 201 4 Plan), which 
was later approved by the shareholders of the Company on May 21 , 201 4. The 201 4 Plan became effective upon receipt of the 
shareholders’ approval on May 21 , 201 4 and is the successor equity compensation plan to the 2007 Equity Compensation Plan (the 
2007 Plan) which was merged with and into the 201 4 Plan. The 201 4 Plan provides for the grant of stock options, stock units, stock 
awards, stock appreciation rights, dividend equivalents and other stock-based awards.

Outstanding grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding 
shares will be issued or transferred under the 201 4 Plan. Permitted grantees under the 201 4 Plan include employees, non-employee 
directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the 
Board of Directors of the Company. The Company has only non-qualified stock options outstanding under the 201 4 Plan.

All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s 
financial performance. The Company’s stock options vest at a rate of 50 percent when a specified diluted earnings per share target  
is achieved, and the remaining 50 percent when a second, higher-specified diluted earnings per share target is achieved. Options  
do not vest due to the passage of time but solely as a result of achievement of the financial vesting targets. Earnings per share targets 
are calculated exclusive of stock-based compensation expense, net of tax. The diluted earnings per share targets are established  
at time of grant and are measured annually on December 31 . The amount of stock-based compensation expense is based upon 
management’s estimate of when the earnings per share targets may be achieved. If management’s estimate of the attainment of  
the earnings per share targets proves to be inaccurate, the remaining amount of stock-based compensation expense could 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 net income and net income per share.

The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair 
value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock  
as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected 
employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to 
estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and 

51

 
implied volatility. The Company estimates forfeitures at the time of grant and may revise those estimates in subsequent periods if 
actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record 
stock-based compensation expense only for those awards that are expected to vest. Stock-based compensation is amortized over  
the requisite service periods of the awards, which are generally the vesting periods.

The weighted average fair value of the Company’s stock options granted during 201 4, 201 3 and 201 2 were $1 0.88, $1 0.45 and $6.73, 
respectively, using the following assumptions:

Expected term (in years)
Expected volatility
Expected dividend yield
Risk-free interest rate

201 4

6.79
26.98 %
1.15 %
2.04 %

201 3

6.92
31 .46 %
1 .21 %
2.1 2 %

201 2

6.75
34.90 %
1 .46 %
1 .03 %

The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 201 4, 201 3 and 201 2 as 
follows:

Stock-based compensation expense
Less: Deferred tax benefit
Stock-based compensation expense, net of tax

201 4

13,463
(4,704)
8,759

$

$

201 3

37,865
(1 3,823 )
24,042

$

$

201 2

1 5,736
(5,650 )
1 0,086

$

$

During 201 3, the Company revised its estimates of when some vesting targets were expected to be achieved. These changes in 
management’s estimates resulted in an increase of $1 9,637 in stock-based compensation expense in 201 3.

As of December 31 , 201 4, there was approximately $45,1 1 5 of unrecognized compensation cost, adjusted for estimated forfeitures, 
related to unvested employee stock options that the Company expects will vest and be expensed through 2020 with a weighted 
average period of 2.4 years.

This table presents certain information relating to the Company’s stock option plans for 201 4, 201 3 and 201 2:

Number of Shares

Weighted Avg. Price

Balance as of December 31 , 201 1
Granted
Exercised
Expired or canceled
Balance as of December 31 , 201 2
Granted
Exercised
Expired or canceled
Balance as of December 31 , 201 3
Granted
Exercised
Expired or canceled
Balance as of December 31 , 201 4

Exercisable as of December 31 , 201 4
Available for future grant as of December 31 , 201 4

27,043,000
2,470,000
(3,1 36,000)
(767,000)
25,61 0,000
2,281 ,000
(3,733,000)
(521 ,000)
23,637,000
2,293,000
(5,261 ,000)
(208,000)
20,461 ,000

1 0,295,000
28,626,000

$

$

$

$

$

20.06
22.40
1 5.1 9
22.61
20.81
33.67
1 7.26
22.25
22.58
40.05
1 9.52
28.83
25.26

20.58

As of December 31 , 201 3 and 201 2, there were 1 4,601 ,000 and 9,760,000 shares exercisable, respectively. The expiration dates for 
options outstanding at December 31 , 201 4 range from December 1 4, 201 5 to December 9, 2024 with a weighted average remaining 
contractual life of 5.8 years.

Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in 
treasury. The total intrinsic value of options exercised during 201 4 and 201 3 was $83,1 96 and $47,392, respectively. The total options 
exercisable as of December 31 , 201 4 had an intrinsic value of $200,328. The total options outstanding as of December 31 , 201 4 had 
an intrinsic value of $302,441 . The total intrinsic value for options outstanding and options exercisable is calculated as the difference 

52

between the market value of the Company’s common stock as of December 31 , 201 4 and the exercise price of the shares. The market 
value of the Company’s common stock as of December 31 , 201 4 was $40.04 as reported by the Nasdaq Stock Market, LLC.

This table summarizes information relating to all options outstanding and exercisable at December 31 , 201 4:

Options Outstanding at December 31 , 201 4

Options Exercisable at December 31 , 201 4

Range of Exercise 
Prices (Per Share)

$ 1 4.62 – 1 5.77
1 7.65 – 21 .05
22.45 – 23.86
27.03 – 32.49
33.73 – 40.64

$

Number of 
Shares

4,073,000
3,534,000
4,399,000
4,073,000
4,382,000
20,461 ,000

Weighted 
Average 
Exercise Price 
(Per Share)

Weighted 
Average 
Remaining 
Contractual Life 
(Years)

1 5.1 9
1 8.20
23.20
30.95
37.1 0

5.48
3.71
6.93
2.68
9.50

Weighted 
Average 
Exercise Price 
(Per Share)

Weighted 
Average 
Remaining 
Contractual Life 
(Years)

1 4.95
1 8.27
21 .92
26.57
31 .1 7

5.69
4.49
4.35
5.09
4.00

$

Number of 
Shares

2,91 5,000
3,51 9,000
1 ,960,000
1 ,901 ,000
—
1 0,295,000

Employee Stock Purchase Plan
The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal 
to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 
1 5,600,000 shares for issuance under this plan. At December 31 , 201 4, 1 1 ,732,000 cumulative shares have been issued. There were 
no material costs incurred by the Company related to the employee stock purchase plan in 201 4, 201 3 and 201 2.

Common Stock Buyback
The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open 
market or through private transactions. As of December 31 , 201 4, the Company had approximately $1 02,71 3 of authorization 
remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related 
total costs in 201 4, 201 3 and 201 2:

Year

2014
201 3
201 2

Total Number of 
Shares Repurchased

$

7,888,000
6,789,000
7,528,000

Total Cost

278,357
209,942
1 55,264

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.

Rights Agreement
In December 2008, the Company’s Board of Directors declared a dividend distribution pursuant to a Rights Agreement (the Rights 
Agreement) which became effective on January 6, 2009. The purpose of the Rights Agreement is to deter coercive or unfair takeover 
tactics and to prevent a person or group (an Acquiring Person) from acquiring control of the Company without offering a fair price to all 
shareholders. Under the Rights Agreement, all common shareholders receive one Right for each common share outstanding. Each 
Right entitles the registered holder to purchase from the Company a unit consisting of one twenty-thousandths of a share of Series A 
Junior Participating Preferred Shares, $0.05 par value per share, or a combination of securities and assets of equivalent value, at a 
purchase price of $1 50.00 per unit, subject to adjustment. The Rights will become exercisable and trade separately from the common 
stock ten days following a public announcement that an Acquiring Person has beneficial ownership of more than 20 percent of the 
outstanding common stock of the Company or the commencement of a tender or exchange offer that would result in an Acquiring 
Person owning 20 percent or more of the outstanding common stock of the Company. Upon exercise, holders, other than an Acquiring 
Person, will have the right to purchase the common stock of the Company equal to twice the value of the exercise price of the Rights. 
In lieu of requiring payment of the purchase price upon exercise of the Rights following certain events, the Company may permit the 
holders simply to surrender the Rights, in which event they will be entitled to receive common shares and other property, as the case 
may be, with a value of 50 percent of what could be purchased by payment of the full purchase price. The Rights, which do not have 
voting rights, will expire on January 6, 201 9, and may be redeemed by the Company any time until ten days following the 
announcement of an Acquiring Person at a price of $0.01  per Right.

5 3

 
Cash Dividends
On May 21 , 201 4, the Board of Directors declared a cash dividend of $0.22 per share on the Company’s common stock, which was 
paid on June 24, 201 4, to shareholders of record on June 1 6, 201 4. On December 9, 201 4, the Board of Directors declared a cash 
dividend of $0.24 per share on the Company’s common stock, which was paid on January 6, 201 5, to shareholders of record on 
December 22, 201 4.

The cash dividends declared in 201 4, 201 3 and 201 2 were $77,1 58, $71 ,665 and $1 08,81 7 respectively. Cash dividends declared in 
201 2 includes a special cash dividend of $55,1 49 declared and paid in December 201 2. The Board of Directors has indicated its 
intention to declare future cash dividends on a semiannual basis.

Note 9 — Accumulated Other Comprehensive Income (Loss)

Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded 
from net income. For the Company, other comprehensive income (loss) includes unrealized gains and losses on available for sale 
securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated 
Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss) attributable to SEI 
Investments shareholders consisted of:

Foreign Currency 
Translation 
Adjustments

Unrealized Holding 
Gains (Losses) on 
Investments

Accumulated Other 
Comprehensive 
Income (Loss)

Balance, January 1 , 201 2

Other comprehensive income before reclassifications
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income

Balance, December 31 , 201 2

Other comprehensive loss before reclassifications
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive loss

Balance, December 31 , 201 3

Other comprehensive loss before reclassifications
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive loss

Balance, December 31 , 201 4

$

$

$

$

(674 ) $

2,574 $

4,084
—
4,084

341
(86 )
255

3,41 0 $

2,829 $

(3,309 )
—
(3,309 )

(1 ,1 49 )
(294 )
(1 ,443 )

1 01 $

1 ,386 $

(1 0,1 89 )
—
(1 0,1 89 )

441
(634 )
(1 93 )

(1 0,088 ) $

1 ,1 93 $

1 ,900

4,425
(86 )
4,339

6,239

(4,458 )
(294 )
(4,752 )

1 ,487

(9,748 )
(634 )
(1 0,382 )

(8,895 )

Note 1 0 — Employee Benefit Plan

The Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for 
early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants 
are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are 
made from available profits. The Company contributed $6,1 57, $5,664 and $5,1 68 to the Plan in 201 4, 201 3 and 201 2, respectively.

Note 1 1  — Commitments and Contingencies

The Company leases certain of its facilities, data processing equipment, and software under non-cancelable operating leases, some 
which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements 
primarily for its data processing equipment. Rent expense was $23,011, $21,519 and $21,614 in 2014, 2013 and 2012, respectively.

5 4

The aggregate noncancellable minimum commitments at December 31 , 201 4 are:

201 5
201 6
201 7
201 8
201 9 and thereafter

$

$

3,779
3,023
3,741
6,704
43,601
60,848

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 December 31 , 201 4 and 201 3 related to these indemnifications.

In the normal course of business, the Company is party to various claims and legal proceedings.

SEI has been named in six lawsuits filed in Louisiana. Five lawsuits were filed in the 1 9th Judicial District Court for the Parish of East 
Baton Rouge. One of the five actions purports to set forth claims on behalf of a class and also names SPTC as a defendant. Two of the 
other actions also name SPTC as a defendant. All five actions name various defendants in addition to SEI, and, in all five actions, the 
plaintiffs purport to bring a cause of action against SEI and/or SPTC under the Louisiana Securities Act. Two of the five actions include 
claims for violations of the Louisiana Racketeering Act and possibly conspiracy. In addition, another group of plaintiffs filed a lawsuit in 
the 23rd Judicial District Court for the Parish of Ascension against SEI and SPTC and other defendants, asserting claims of negligence, 
breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental 
reliance, violations of the Louisiana Securities Act and Louisiana Racketeering Act, and conspiracy. The underlying allegations in all 
actions relate to the purported role of SPTC in providing back-office services to Stanford Trust Company. The petitions allege that SEI 
and SPTC aided and abetted or otherwise participated in the sale of “certificates of deposit” issued by Stanford International Bank.

The case filed in Ascension Parish was removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the 
United States District Court for the Northern District of Texas. The schedule for responding to that petition has not yet been established.

The plaintiffs in two of the cases filed in East Baton Rouge have granted SEI and SPTC an indefinite extension to respond to the petitions.

In a third East Baton Rouge action, brought as a class action, SEI and SPTC filed exceptions, which the Court granted in part, 
dismissing the claims under the Louisiana Unfair Trade Practices Act. Plaintiffs then filed a motion for class certification, and SEI and 
SPTC also filed a motion for summary judgment. The Court deferred the motion for summary judgment, stating that the motion would 
not be set for hearing until after the hearing on class certification. After the Court held a hearing on class certification, it certified a 
class composed of persons who purchased or renewed any Stanford International Bank certificates of deposit (SIB CDs) in Louisiana 
between January 1 , 2007 and February 1 3, 2009 or any person for whom the Stanford Trust Company purchased SIB CDs in Louisiana 
between January 1 , 2007 and February 1 3, 2009. SEI and SPTC filed motions for appeal from the class certification judgments.  
On February 1 , 201 3, plaintiffs filed a motion for Leave to File a First Amended and Restated Class Action Petition in which they asked 
the Court to allow them to amend the petition and add claims against certain of SEI’s insurance carriers. On February 5, 201 3, the 
Court granted two of the motions for appeal and the motion for leave to amend. On February 28, 201 3, SEI responded to the First 
Amended and Restated Class Action Petition by seeking dismissal of the action. On March 1 1 , 201 3, the newly-added insurance 
carrier defendants removed the case to the Middle District of Louisiana. SEI notified the Judicial Panel on Multidistrict Litigation (MDL) 
of this case as a potential tag-along action. Plaintiffs filed a motion to remand the action to state court. On March 25, 201 3, SEI filed a 
motion requesting that the federal court decline to adopt the state court’s order regarding class certification, which the court 
dismissed without prejudice to renew upon a determination of the jurisdictional issue. On August 7, 201 3, the MDL Panel transferred 
the matter against SEI to the Northern District of Texas. On October 1 , 201 4, SEI filed a renewed motion to dismiss in the Northern 
District of Texas, and on October 6, 201 4, the District Court denied plaintiffs’ motion to remand. This case is now pending in the 
Northern District of Texas, and SEI is awaiting a ruling on its motion to dismiss.

In the two other cases filed in East Baton Rouge, brought by the same counsel who filed the class action, virtually all of the litigation to 
date has involved motions practice and appellate litigation regarding the existence of federal subjection matter jurisdiction under the 
federal Securities Litigation Uniform Standards Act (SLUSA). After the matter was removed to the United States District Court for the 
Northern District of Texas, that court 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, 201 4. The matter was remanded 
to state court and no material activity has taken place since that date.

5 5

 
While the outcome of this litigation is uncertain given its early phase, SEI and SPTC believe that they have valid defenses to plaintiffs’ 
claims and intend to defend the lawsuits vigorously. Because of the uncertainty of the make-up of the classes, the specific theories of 
liability that may survive a motion for summary judgment or other dispositive motion, the 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, with respect to the foregoing lawsuits.

A lawsuit entitled Steven Curd and Rebel Curd v. SEI Investments Management Corporation was filed against SIMC in the United States 
District Court for the Eastern District of Pennsylvania on December 1 1 , 201 3. On August 28, 201 4, the Court granted SIMC’s motion  
to dismiss the initial complaint in the lawsuit, but also granted plaintiffs leave to amend the complaint. On October 2, 201 4, plaintiffs 
filed an amended complaint. In the amended complaint, SEI Investments Global Funds Services (SGFS) was added as a defendant.  
The plaintiffs bring the case as a shareholder derivative action against SIMC and SGFS on behalf of certain SEI funds. The claims are 
based on Section 36(b) of the Investment Company Act of 1 940, as amended, which allows shareholders of a mutual fund to sue the 
investment adviser of the fund or its affiliates for an alleged breach of fiduciary duty with respect to compensation received by the 
adviser or its affiliates. The plaintiffs have brought the suit against SIMC and SGFS with respect to five specific SEI Funds: the High 
Yield Bond, Tax-Managed Large Cap, and Tax-Managed Small/Mid Cap Funds, each of which is a series of the SEI Institutional 
Managed Trust, the Intermediate Term Municipal Fund, which is a series of the SEI Tax Exempt Trust, and the International Equity Fund, 
which is a series of the SEI Institutional International Trust (the SEI Funds). The plaintiffs seek: (1 ) damages for the SEI Funds in the 
amount of the alleged “excessive” fees earned by SIMC and SGFS beginning from the one year period prior to the filing of the lawsuit, 
plus interest, costs, and fees; (2) orders declaring that SIMC and SGFS allegedly violated Section 36(b) and enjoining SIMC and SGFS 
from further alleged violations; and (3) rescission of SIMC’s and SGFS’s contracts with the funds, and restitution of all allegedly 
excessive fees paid beginning from the one year period prior to the filing of the lawsuit, plus interest, costs, and fees. On November 
24, 201 4, SIMC and SGFS filed a motion to dismiss the amended complaint. The court has not yet ruled on that motion. While the 
outcome of this litigation is uncertain given its early phase, SIMC and SGFS believe that they have valid defenses to plaintiffs’ claims 
and intend to defend the lawsuit vigorously, and SIMC and SGFS are not reasonably able to provide an estimate of the ultimate loss,  
if any, with respect to this lawsuit.

On November 26, 201 4, a Writ of Summons was issued to two of our subsidiaries, SEI Investments — Global Fund Services Limited 
(GFSL) and SEI Investments — Trustee & Custodial Services (Ireland) Limited (T&C), to appear before the Court of First Instance 
Antwerp, Belgium on March 1 1 , 201 5. The plaintiffs in this case allege that through their initial investments in collective investment 
funds domiciled in Netherlands and subsequent transfer of claim rights to a Belgium domiciled partnership, they are beneficial owners 
of a portfolio of life settlement policies (the Portfolio) which lapsed due to a failure to make premium payments. The plaintiffs seek to 
recover jointly and severally from nine defendants including GFSL and T&C, damages of approximately $84 million. GFSL and T&C’s 
involvement in the litigation appears to arise out of their historical provision of administration and custody services respectively, to the 
Strategic Life Settlement Fund PLC , who, together with its managers, appear to be the principal defendants in this claim. While the 
outcome of this action is uncertain given its early phase and the lack of specific theories of liability asserted against GFSL and T&C, 
each of GFSL and T&C believe that they have valid defenses to plaintiffs’ claims and intend to defend the lawsuit vigorously.

Note 1 2 — Income Taxes

The federal and state and foreign income tax provision is summarized as follows:

Year Ended December 31 ,

201 4

201 3

201 2

Current

Federal
State
Foreign

Deferred, including current deferred

Federal
State
Foreign

Income taxes attributable to the noncontrolling interest
Total income taxes

5 6

$

155,273 $
8,744
5,254
169,271

1,667
11
—
1,678
—

$

170,949 $

1 53,856 $
1 1 ,542
4,727
1 70,1 25

(2,21 4 )
(1 6,264 )
(4,81 4 )
(23,292 )
91
1 46,924 $

1 1 2,247
5,284
4,51 1
1 22,042

(2,708 )
(2,1 99 )
3,970
(937 )
357
1 21 ,462

Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year  
tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued.  
The examination and the resolution process may last longer than one year.

The components of Income before income taxes are summarized as follows:

Year Ended December 31 ,

Domestic
Foreign

201 4

201 3

$

$

475,175 $
14,487
489,662 $

427,91 5 $
7,042
434,957 $

201 2

31 9,907
8,046
327,953

The effective income tax rate differs from the federal income tax statutory rate due to the following:

Year Ended December 31 ,

Statutory rate
State taxes, net of Federal tax benefit
Foreign tax expense and tax rate differential
Research and development tax credit
Domestic Production Activities Deduction
PA Tax Law changes and change in valuation allowance on loss carryforwards
Net change in uncertain tax positions
Other, net

201 4

35.0 %
1.2
(0.7 )
(0.4 )
(0.4 )
—
0.3
(0.1 )
34.9 %

201 3

35.0 %
1 .5
0.5
(0.8 )
(0.5 )
(2.4 )
0.1
0.3
33.7 %

201 2

35.0 %
1 .0
1 .6
—
(0.6 )
(0.3 )
0.5
(0.3 )
36.9 %

The impact on the Company’s effective income tax rate from the net change in uncertain tax positions in 201 4 relates to federal issues 
mainly associated with the compilation of foreign tax credits and state tax issues. For 201 3 and 201 2, the impact from the net change 
in uncertain tax positions relates to federal and state tax issues and foreign tax issues.

Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $61 ,833 at December 31 , 201 4. Those 
earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided 
thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. 
income taxes, subject to an adjustment for foreign tax credits, and withholding taxes payable to the various foreign countries. 
Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities 
associated with its hypothetical calculation, including the availability, or lack thereof, of foreign tax credits to reduce a portion of  
the U.S. liability.

Deferred income taxes for 201 4, 201 3 and 201 2 reflect the impact of temporary differences between the amount of assets and 
liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. In 201 3, the Company’s 
deferred income tax net liability decreased significantly due to the following: (1 ) Pennsylvania Tax Law changes enacted on July 1 8, 
201 3 which became effective on January 1 , 201 4. These changes reduced the deferred tax liability which had accumulated during 
prior years. In accordance with the tax accounting rules, the effect of the law change is recorded in the year in which the law was 
signed. The primary change that affects the Company results from the reduction of net income apportioned to the State of 
Pennsylvania. The bill adopts “market-based” sourcing for apportionment. This method apportions sales to the state where  
the benefits are being derived by the customer. The current method apportions sales of services to the state where the cost was 
incurred to perform those services; (2) the Company’s current payable was increased by unfavorable temporary differences such  
as stock option compensation which is not currently deductible but will reverse in the future; thus reducing the Company’s deferred 
tax liability; (3) the Company’s current payable decreased as a result of the sale of SEI AK. 

5 7

 
The net deferred income tax liability is comprised of:

Year Ended December 31 ,

Current deferred income taxes:
Gross assets
Gross liabilities

Valuation allowance

Long-term deferred income taxes:
Gross assets
Gross liabilities

Valuation allowance

Net deferred income tax liability

201 4

201 3

$

$

2,952 $
(4,366)
(1,414)
—
(1,414)

66,335
(113,581)
(47,246)
(16,509)
(63,755)
(65,169) $

2,458
(4,1 1 1 )
(1 ,653 )
—
(1 ,653 )

69,483
(1 21 ,31 7 )
(51 ,834 )
(1 4,738 )
(66,572 )
(68,225 )

The valuation allowances against deferred tax assets at December 31 , 201 4 and 201 3 are related to state net operating losses  
from certain domestic subsidiaries. Certain state tax statutes significantly limit the utilization of net operating losses for domestic 
subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. In 201 4, the 
valuation also includes valuation of foreign tax credit.

The tax effect of significant temporary differences representing deferred tax liabilities is:

Year Ended December 31 ,

Difference in financial reporting and income tax depreciation methods
Reserves not currently deductible
Capitalized software currently deductible for tax purposes, net of amortization
State deferred income taxes
Revenue and expense recognized in different periods for financial reporting 

$

and income tax purposes

Unrealized holding gain on investments
Stock-based compensation expense
State net operating loss carryforward
Valuation allowance on deferred tax assets
Federal benefit of state tax deduction for uncertain tax positions
Foreign tax credit
Foreign deferred including taxes on cumulative undistributed earnings  

of SEI AK

Net deferred income tax liability

201 4

(3,637) $
209
(118,841)
(420)

6,212
(475)
38,989
24,150
(16,509)
2,913
2,327

201 3

(7,043 )
235
(1 1 9,800 )
251

3,856
(308 )
45,555
21 ,21 5
(1 4,738 )
2,643
—

(87)
(65,169) $

(91 )
(68,225 )

$

The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities 
when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the 
complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current 
estimate of the tax liabilities. The Company’s total unrecognized tax benefit, not including interest and penalties, as of December 31 , 
201 4 was $1 4,01 8, of which $1 2,1 62 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross 
amount of uncertain tax liability of $4,757 which is expected to be paid within one year is netted against the current payable account 
while the remaining amount of $1 0,327 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheets. 
During the year ended December 31 , 201 4, the Company recognized $1 ,336 of previously unrecognized tax benefits relating to the 
lapse of the statute of limitation for certain state filings.

The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries 
of the Company file tax returns in foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examination for 
years before 201 1  and is no longer subject to state, local or foreign income tax examinations by authorities for years before 201 0.

5 8

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

Balance as of January 1
Tax positions related to current year:
Gross additions
Gross reductions

Tax positions related to prior years:
Gross additions
Gross reductions

Settlements
Lapses on statute of limitations
Balance as of December 31

201 4

201 3

$

12,028 $

1 1 ,553 $

1,957
—
1,957

1,369
—
1,369
—
(1,336)
14,018 $

1 ,834
—
1 ,834

3,435
—
3,435
(3,772 )
(1 ,022 )
1 2,028 $

$

201 2

9,41 0

2,1 96
—
2,1 96

1 ,990
—
1 ,990
(99 )
(1 ,944 )
1 1 ,553

The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate 
because of the recognition of the federal and state tax benefits.

The Company classifies all interest and penalties as income tax expense. The Company has recorded $1 ,066, $754 and $770 in 
liabilities for tax related interest and penalties in 201 4, 201 3 and 201 2, respectively.

The Company estimates it will recognize $1 ,700 of unrecognized tax benefits within the next twelve months due to lapses on the 
statute of limitation.

The Company includes its direct and indirect subsidiaries in its U.S. consolidated federal income tax return. The Company’s tax sharing 
allocation agreement provides that any subsidiary having taxable income will pay a tax liability equivalent to what that subsidiary 
would have paid if it filed a separate income tax return. If the separately calculated federal income tax provision for any subsidiary 
results in a tax loss, the current benefit resulting from such loss, to the extent utilizable on a separate return basis, is accrued and paid 
to that subsidiary.

Note 1 3 — Business Segment Information

The Company’s reportable business segments are:

•  Private Banks — provides investment processing and investment management programs to banks and trust institutions, 

independent wealth advisers and financial advisors worldwide;

•  Investment Advisors — provides investment management programs to affluent investors through a network of independent 

registered investment advisors, financial planners and other investment professionals in the United States;

•  Institutional Investors — provides investment management programs and administrative outsourcing solutions to retirement plan 

sponsors, hospitals and not-for-profit organizations worldwide;

•  Investment Managers — provides investment operations outsourcing solutions to fund companies, banking institutions and both 

traditional and non-traditional investment managers worldwide; and

•  Investments in New Businesses — focuses on providing investment management programs to ultra-high-net-worth families 
residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and 
conducting other research and development activities.

In 201 4, 201 3 and 201 2, no single customer accounted for more than ten percent of revenues in any business segment.

59

 
The following tables highlight certain financial information about each of the Company’s business segments for the years ended 
December 31 , 201 4, 201 3 and 201 2:

For the Year Ended December 31 , 201 4

Revenues
Expenses
Operating profit (loss)
Gain on sale of subsidiary
Total profit (loss)

For the Year Ended December 31 , 201 3

Revenues
Expenses
Operating profit (loss)
Gain on sale of subsidiary
Total profit (loss)

For the Year Ended December 31 , 201 2

Revenues
Expenses
Operating profit (loss)

Private 
Banks

Investment 
Advisors

Institutional 
Investors

Investment 
Managers

Investments 
In New 
Businesses

Total

441 ,467 $
399,620

41 ,847 $
5,582
47,429 $

283,81 1 $
1 46,500
1 37,31 1 $
—
1 37,31 1 $

284,677 $
1 40,659
1 44,01 8 $

—

1 44,01 8 $

251 ,31 0 $
1 59,1 76
92,1 34 $
—
92,1 34 $

4,740 $ 1 ,266,005
864,332
1 8,377
401 ,673
(1 3,637 ) $
5,582
—
407,255
(1 3,637 ) $

Private 
Banks

Investment 
Advisors

Institutional 
Investors

Investment 
Managers

Investments 
In New 
Businesses

Total

397,1 38 $
392,399

4,739 $
22,1 1 2
26,851 $

241 ,252 $
1 33,962
1 07,290 $

—

1 07,290 $

257,658 $
1 33,21 8
1 24,440 $
—
1 24,440 $

226,081 $
1 48,977

77,1 04 $
—
77,1 04 $

4,003 $ 1 ,1 26,1 32
824,279
1 5,723
301 ,853
(1 1 ,720 ) $
22,1 1 2
—
323,965
(1 1 ,720 ) $

Private 
Banks

Investment 
Advisors

Institutional 
Investors

Investment 
Managers

Investments 
In New 
Businesses

364,788 $
357,001

7,787 $

202,703 $
1 20,1 46
82,557 $

227,889 $
1 1 6,546
1 1 1 ,343 $

1 93,484 $
1 27,525
65,959 $

3,658 $
1 4,954
(1 1 ,296 ) $

Total

992,522
736,1 72
256,350

$

$

$

$

$

$

$

$

A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of 
Operations for the years ended December 31 , 201 4, 201 3 and 201 2 is as follows:

Year Ended December 31 ,

Total operating profit from segments above
Corporate overhead expenses
Noncontrolling interest reflected in segments
Income from operations

201 4

201 3

$

$

401,673 $
(48,889)
—

352,784 $

301 ,853 $
(53,733 )
289
248,409 $

201 2

256,350
(45,759 )
975
21 1 ,566

The following tables provide additional information for the years ended December 31 , 201 4, 201 3 and 201 2 pertaining to our  
business segments:

Capital Expenditures (1 )

Depreciation

Year Ended December 31 ,

201 4

201 3

Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Investments in New Businesses
Total from business segments
Corporate Overhead

$

$

$

30,883 $
13,783
4,575
9,505
2,547
61,293 $
2,053
63,346 $

34,258 $
1 2,61 1
2,71 2
4,871
639
55,091 $
760
55,851 $

201 2

32,509
1 1 ,1 93
2,781
5,494
632
52,609
1 ,465
54,074

201 4

201 3

$

$

$

13,393 $
2,507
1,041
2,917
1,983
21,841 $
607
22,448 $

1 5,506 $
2,091
893
1 ,970
1 ,589
22,049 $
448
22,497 $

201 2

1 5,226
1 ,981
1 ,01 2
1 ,91 4
1 ,71 6
21 ,849
737
22,586

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

6 0

Year Ended December 31 ,

Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Investments in New Businesses
Total from business segments
Corporate Overhead

Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Investments in New Businesses
Total from business segments
Corporate Overhead (2)

Amortization

201 3

22,379 $
8,234
1 ,274
851
1 ,636
34,374 $
228
34,602 $

201 4

24,993 $
9,228
1,430
954
1,846
38,451 $
228
38,679 $

201 2

22,21 8
7,1 67
1 ,208
804
1 ,249
32,646
61 2
33,258

Total Assets

201 4

417,890 $
134,371
118,397
134,614
21,830
827,102 $
715,773
1,542,875 $

201 3

430,61 3
1 24,028
97,81 6
1 22,969
6,064
781 ,490
657,679
1 ,439,1 69

$

$

$

$

$

$

(2) Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets.

The following table presents revenues based on the location of the use of the products or services:

For the Year Ended December 31 ,

United States
International operations

The following table presents assets based on their location:

United States
International operations

201 4

201 3

1,063,223 $
202,782
1,266,005 $

962,266 $
1 63,866
1 ,1 26,1 32 $

201 2

843,407
1 49,1 1 5
992,522

201 4

1,315,036 $
227,839
1,542,875 $

201 3

1 ,231 ,565
207,604
1 ,439,1 69

$

$

$

$

6 1

 
Note 1 4 — Related Party Transactions

The Company, either by itself or through its wholly-owned subsidiaries, is a party to Investment Advisory and Administration 
Agreements with regulated investment companies (RICs) and other investment products which are administered by the Company. 
These investment products are offered to clients of the Company and its subsidiaries. Under the Investment Advisory and 
Administration Agreements, the Company receives a fee for providing investment advisory, administrative, and accounting services. 
The investment advisory and administration fee is a fixed percentage, referred to as basis points, of the average daily net assets, 
subject to certain limitations. Investment advisory and administration fees received by the Company totaled $489,066, $422,825 and 
$380,645 in 201 4, 201 3 and 201 2, respectively. The Company is also a party to various agreements with several RICs which are 
advised and/or administered by the Company. The Company receives a fee for providing shareholder, administrative and distribution 
services pursuant to the provisions of various shareholder service, administrative service, and distribution plans adopted by the RICs. 
These fees totaled $66,424, $47,988 and $37,827 in 201 4, 201 3 and 201 2, respectively. A portion of the transaction costs incurred by 
the RICs for securities transactions are directed to the Company’s broker-dealer subsidiary in its capacity as an introducing broker-
dealer. The Company recognized $1 ,733, $620 and $1 ,21 3 in commissions during 201 4, 201 3 and 201 2, respectively.

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

Note 1 5 — Sale of SEI Asset Korea

On July 31 , 201 2, the Company, MetLife International Holdings, Inc. (MetLife) and International Finance Corporation (IFC) entered  
into a definitive agreement with Baring Asset Management Limited (Barings) to sell all ownership interest in SEI Asset Korea (SEI AK). 
SEI AK was located in South Korea and provided domestic equity and fixed income investment management services to financial 
institutions and pension funds.

On March 28, 201 3, all conditions subject to closing the transaction were satisfied and all ownership interests in SEI AK were 
transferred to Barings. The net working capital of SEI AK at closing in excess of required regulatory capital, and subject to certain 
other adjustments, was distributed to the Company, MetLife and IFC in accordance with the ownership interests. The Company 
recognized a pre-tax gain of $22,1 1 2, or $0.08 diluted earnings per share, during 201 3. Under the terms of the agreement, a portion 
of the purchase price was paid upon closing with up to an additional $1 1 ,220 payable to the Company as a contingent purchase price 
with respect to three one-year periods ending on December 31 , 201 3, 201 4 and 201 5 depending upon whether SEI AK achieves 
specified revenue measures during such periods. The Company recognized a pre-tax gain of $5,582, or $0.02 diluted earnings per 
share, during 201 4 with respect to the first one-year period which ended December 31 , 201 3. The Company’s gains from the sale  
of SEI AK are included in Gain on sale of subsidiary on the accompanying Consolidated Statement of Operations.

The operating results of SEI AK were included in the Private Banks business segment. SEI AK revenues and net income included in  
the Company’s Consolidated Statement of Operations were as follows:

Revenues
Net income
Less: Income attributable to the noncontrolling interests
Net income attributable to SEI AK

Note 1 6 — Settlement Agreement

For the Period 
January 1 , 201 3 
through March 
28, 201 3

$
$

$

2,889 $
796 $
(350 )
446 $

201 2

1 1 ,51 4
2,703
(1 ,1 86 )
1 ,51 7

On April 24, 201 3, the Company entered into a Settlement Agreement with respect to litigation captioned Abu Dhabi Commercial 
Bank, et. al. v. Morgan Stanley & Co., Incorporated, et. al., brought by a group of plaintiffs, including the Company, related to the 
purchase of securities by the Company and others of Cheyne Finance LLC, a SIV security. In accordance with the Settlement 
Agreement, the Company received a cash settlement payment of $43,429 after fees and expenses during the three months ended 
June 30, 201 3. The income related to the cash settlement payment is reflected in Other income on the accompanying Consolidated 
Statements of Operations.

6 2

Note 1 7 — Quarterly Financial Data (Unaudited)

For the Three Months Ended

201 4

Revenues
Income before income taxes
Net income attributable to SEI
Basic earnings per share
Diluted earnings per share

Effective income tax rate
Gain on sale of subsidiary (Note 1 5)
Diluted earnings per share (1 )

Loss from impairment charge (Note 2)
Diluted earnings per share (2)

(1 ) Attributable to gain on sale of subsidiary.
(2) Attributable to loss from impairment charge.

201 3

Revenues
Income before income taxes
Net income attributable to SEI
Basic earnings per share
Diluted earnings per share

Effective income tax rate
Gain on sale of subsidiary (Note 1 5)
Diluted earnings per share (3)

Settlement agreement (Note 1 6)
Diluted earnings per share (4)

(3) Attributable to gain on sale of subsidiary.
(4) Attributable to settlement agreement.

$
$
$
$
$

$
$

$
$

$
$
$
$
$

$
$

$
$

September 30

December 31

March 31

302,386
1 1 6,665
74,820
0.44
0.43

35.9 %

5,582
0.02

$
$
$
$
$

$
$

— $
— $

June 30

31 8,81 5
1 28,854
82,81 3
0.49
0.48

$
$
$
$
$

322,047
1 28,61 8
83,983
0.50
0.49

$
$
$
$
$

35.7 %

34.7 %

— $
— $

— $
— $

— $
— $

— $
— $

322,757
1 1 5,525
77,097
0.46
0.45

33.3 %
—
—

1 1 ,266
0.06

For the Three Months Ended

March 31

271 ,879
1 1 0,962
71 ,920
0.42
0.41

34.9 %

22,1 1 2
0.08

$
$
$
$
$

$
$

June 30

274,574
1 29,387
83,494
0.48
0.47

$
$
$
$
$

35.5 %

— $
— $

— $
— $

43,429
0.1 6

$
$

September 30

December 31

280,655
93,986
67,1 95
0.39
0.38

$
$
$
$
$

28.5 %

— $
— $

— $
— $

299,024
1 01 ,063
65,51 5
0.39
0.37

35.2 %
—
—

—
—

6 3

 
Schedule II — Valuation and Qualifying 
Accounts and Reserves

(In thousands)

Year Ended December 31 ,

Additions

SEI Investments Company and Subsidiaries 

Description

Allowance for doubtful accounts:
2014
201 3
201 2
Deferred income tax valuation 

allowance:

2014
201 3
201 2

Balance at 
Beginning of 
Year

Charged to 
Costs and 
Expenses

Charged to 
Other 
Accounts

(Deductions)

Balance at 
End of Year

$

$

$

$

651
805
924

14,738
6,879
8,585

$

$

133
—
—

—
(485 )
(1 ,706 )

$

$

—
—
—

1,771
8,344
—

$

$

—
(1 54 )
(1 1 9 )

—
—
—

784
651
805

16,509
1 4,738
6,879

Item 9. Changes in and Disagreements with Accountants on Accounting  
and Financial Disclosure.

On March 4, 201 4, we filed a Current Report on Form 8-K reporting our appointment, upon the recommendation of our Audit 
Committee of the Board of Directors, of KPMG LLP to serve as our independent registered public accounting firm for the fiscal year 
201 4 and dismissal of PricewaterhouseCoopers LLP from that role.

Item 9A. Controls and Procedures.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, 
we conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined under Rule 
1 3a-1 5(e) promulgated under the Securities Exchange Act of 1 934, as amended (the Exchange Act), as of the end of the period 
covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure 
controls and procedures are effective as of the end of the period covered by this annual report to provide reasonable assurance  
that the information required to be disclosed by us in reports filed under the Exchange Act 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.

Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is 
defined in Exchange Act Rule 1 3a-1 5(f). Under the supervision and with the participation of our management, including our Chief 
Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial 
reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring 
Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control — Integrated Framework 
(2013), our management concluded that our internal control over financial reporting was effective as of December 31 , 201 4.

The effectiveness of our internal control over financial reporting as of December 31 , 201 4 has been audited by KPMG LLP, an 
independent registered public accounting firm, as stated in their report which is included herein.

6 4

Changes in Internal Control over Financial Reporting
No change in our internal control over financial reporting occurred during the quarter ended December 31 , 201 4 that has materially 
affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

None.

6 5

 
PART III

Item 1 0. Directors, Executive Officers and Corporate Governance.

Identification of Directors
Information with respect to the members of the Board of Directors of the Company is set forth under the caption “Election of 
Directors” in the Company’s definitive proxy statement to be filed pursuant to Regulation 1 4A, which information is incorporated 
herein by reference.

Identification of Executive Officers
The Board of Directors of the Company has determined that the Company’s executive officers within the meaning of Rule 3b-7 
promulgated under the Securities Exchange Act of 1 934, as amended, are as follows:

ALFRED P. WEST, JR., 72, has been the Chairman of the Board of Directors and Chief Executive Officer of the Company since its 
inception in 1 968. Mr. West was President from June 1 979 to August 1 990.

KEVIN P. BARR, 49, has been an employee of the Company since May 2000. Mr. Barr has been an Executive Vice President since  
May 2008.

ROBERT F. CRUDUP, 67, has been an employee of the Company since 1 987. Mr. Crudup has been an Executive Vice President since 
January 2001 .

KATHY C. HEILIG, 56, has been an employee of the Company since November 1 987. Ms. Heilig has been Chief Accounting Officer 
and Controller since May 1 999. Ms. Heilig was Treasurer from May 1 997 to May 2005.

N. JEFFREY KLAUDER, 62, has been Executive Vice President and General Counsel of the Company since August 2004. Prior to 
August 2004, Mr. Klauder was a partner of Morgan Lewis & Bockius, LLP, a law firm.

EDWARD D. LOUGHLIN, 64, has been an employee of the Company since September 1 979. Mr. Loughlin has been an Executive  
Vice President since May 1 993 and a Senior Vice President since January 1 988.

DENNIS J. MCGONIGLE, 54, has been an employee of the Company since August 1 985. Mr. McGonigle has been the Chief Financial 
Officer since December 2002 and an Executive Vice President since July 1 996 and a Senior Vice President since May 1 995.

STEPHEN G. MEYER, 50, has been an employee of the Company since November 1 992. Mr. Meyer has been an Executive Vice 
President since December 2006 and a Senior Vice President since December 2005.

JOSEPH P. UJOBAI, 53, has been an employee of the Company since May 1 998. Mr. Ujobai has been an Executive Vice President 
since May 2003 and a Senior Vice President since January 2001 .

WAYNE M. WITHROW, 59, has been an employee of the Company since January 1 990. Mr. Withrow has been an Executive  
Vice President since March 2000 and a Senior Vice President since January 1 994. Mr. Withrow was Chief Information Officer from 
March 2000 to May 2002.

Section 1 6(a) Beneficial Ownership Reporting Compliance
Information with respect to the Section 1 6(a) compliance of the directors and executive officers of the Company is set forth under  
the caption “Section 1 6(a) Beneficial Ownership Reporting Compliance” in the Company’s definitive proxy statement to be filed 
pursuant to Regulation 1 4A, which information is incorporated herein by reference.

Code of Conduct
The Company has adopted a Code of Conduct applicable to all of its employees, including its executive officers, as well as a Code of 
Ethics for Senior Financial Officers. The Code of Conduct and the Code of Ethics for Senior Financial Officers is posted on our website, 
www.seic.com under the Investors/Corporate Governance section.

Item 1 1 . Executive Compensation.

Information required by this item is set forth under the caption “Executive Compensation” in the Company’s definitive proxy statement 
to be filed pursuant to Regulation 1 4A, which information is incorporated herein by reference.

6 6

Item 1 2. Security Ownership of Certain Beneficial Owners and Management 
and Related Stockholder Matters.

Information required by this item is set forth under the caption “Ownership of Shares” in the Company’s definitive proxy statement  
to be filed pursuant to Regulation 1 4A, which information is incorporated herein by reference.

The following table provides information regarding the aggregate number of securities to be issued under all of our equity 
compensation plans upon exercise of outstanding options, warrants, and other rights and their weighted-average exercise price  
as of December 31 , 201 4. Material features of each of the plans reflected in the table are described below.

Number of securities to be 
issued upon exercise of 
outstanding options, 
warrants and rights (a)

Weighted — average exercise 
price of outstanding options, 
warrants and rights (b)

Number of securities 
remaining available for 
future issuance under equity 
compensation plans 
(excluding securities 
reflected in column (a)) (c)

Equity compensation plans approved by 

security holders (1 )

Equity compensation plans not approved by 

security holders

Total

20,460,957

—
20,460,957

$

$

25.26

—
25.26

28,626,322

—
28,626,322

(1 ) Consists of: (i) the 201 4 Omnibus Equity Compensation Plan, and (ii) the Amended and Restated 1 998 Equity Compensation Plan.

The 201 4 Omnibus Equity Compensation Plan:
On March 1 9, 201 4, the Board of Directors adopted the 201 4 Omnibus Equity Compensation Plan (the 201 4 Plan), and the Company’s 
shareholders approved the adoption of the 201 4 Plan on May 21 , 201 4 (the Effective Date). The 201 4 Plan replaced the 2007 Equity 
Compensation Plan (The 2007 Plan). The 2007 Plan has been merged with and into the 201 4 Plan as of the Effective Date. Outstanding 
grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding shares with 
respect to those outstanding grants will be issued or transferred under the 201 4 Plan. No additional grants shall be made after the 
Effective Date under the 2007 Plan.

The 201 4 Plan provides for grants of stock options (incentive stock options and nonqualified stock options), stock units, stock awards, 
stock appreciation rights (SARs), dividend equivalents and other stock-based awards to all employees (including employees who are 
also directors) of the Company or its subsidiaries, consultants who perform valuable services to the Company or its subsidiaries and 
members of the Board of Directors who are not employees of the Company. The Company has only granted nonqualified stock options 
under the 201 4 Plan.

The 201 4 Plan is administered and interpreted by the Compensation Committee (the Committee) or another committee appointed by 
our Board of Directors; however, the Board of Directors or its delegate will administer and interpret all grants under the 201 4 Plan to 
non-employee directors. The Committee has the authority to (i) determine the individuals to whom grants will be made under the 201 4 
Plan, (ii) determine the type, size and terms and conditions of the grants, (iii) determine the time when grants will be made and the 
duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability, 
(iv) amend the terms and conditions of any previously issued grant, and (v) deal with any other matters arising under the 201 4 Plan.

Options granted under the 201 4 Plan may be “incentive stock options,” which are intended to qualify within the meaning of Section 
422 of the Internal Revenue Code, and “nonqualified stock options” which are not intended to so qualify. Options are granted under 
the 201 4 Plan with an exercise price equal to or greater than the fair market value of the Company’s common stock on the date of 
grant and the term of which may not exceed ten years from the date of grant. The vesting period for options commences on the date 
of grant, or upon the achievement of such vesting requirements, and ends on such date as is determined in each case by the 
Committee, in its sole discretion, which is specified in the grant agreement. Options may be exercised only while the participant is 
actively employed by or actively providing service to the Company unless the Committee provides for a period after such employment 
or service in which the option may be exercised. The Committee may only grant incentive stock options to employees of the Company 
or its subsidiaries.

The Committee may grant SARs to anyone eligible to participate in the 201 4 Plan. Upon exercise of a SAR, the participant will receive 
an amount equal to the excess of the fair market value of the Company’s common stock on the date of exercise over the base amount 
set forth in the grant agreement. Such payment to the participant will be in cash, in shares of common stock, or in a combination of 
cash and shares of common stock as determined by the Committee. The Committee will determine the period when SARs vest and 

6 7

 
become exercisable, the base amount of the SARs, and whether SARs will be granted in connection with, or independently of, any 
options. SARs may be exercised only while the participant is actively employed by or actively providing service to the Company unless 
the Committee provides for a period after such employment or service in which the option may be exercised.

The Committee may grant stock units to anyone eligible to participate in the 201 4 Plan. A stock unit is a phantom unit that represents 
the right to receive a share of common stock or an amount based on the value of a share of the Company’s common stock. The 
Committee will determine the number of stock units that a participant will receive and the terms and conditions applicable to such 
stock units as specified in the grant agreement. The Committee may grant stock units that are payable at the end of a specified 
vesting period or if specified performance goals or other conditions are met, or under other circumstances. Such payment to the 
participant will be in cash, in shares of common stock, or in a combination of cash and shares of common stock. The Committee will 
determine the period and conditions when stock units vest. The Committee will determine in the grant agreement under what 
circumstances a participant may retain stock units if after employment or service with the Company prior to the vesting of any stock 
units and the circumstances under which a participant will forfeit stock units.

The Committee may grant dividend equivalents in connection with stock units, under such terms and conditions the Committee deems 
appropriate. Dividend equivalents may be paid as and when the underlying stock units are paid, or may be deferred. The dividend 
equivalent amount with respect to a stock unit is determined by multiplying the number of shares of the Company’s common stock 
subject to the stock unit by the per share cash dividend, or the per share fair market value for non-cash dividends, paid by the 
Company with respect to a dividend record date. Dividend equivalents may be accrued as a cash obligation, or may be converted to 
additional stock units, and deferred dividend equivalents may accrue interest, all as determined by the Committee. The Company may 
provide that dividend equivalents are payable based on the achievement of specific performance goals. Dividend equivalents may be 
paid in cash, shares of common stock, or in a combination of the two, as determined by the Committee.

The Committee may grant stock awards to anyone eligible to participate in the 201 4 Plan. A stock award is a grant of shares of the 
Company’s common stock, which may be subject to restrictions. The Committee will determine whether a stock award will be granted, 
the number of shares that will be subject to such award, when and how restrictions, if any, will lapse, and whether a purchase price 
must be paid for the shares subject to the award. The Committee will determine the period and conditions when stock awards vest. 
The Committee will determine in the grant agreement under what circumstances a participant may retain stock awards if after 
employment or service with the Company prior to the vesting of any stock awards and the circumstances under which a participant 
will forfeit stock awards.

For each share of common stock that is actually issued or transferred pursuant to a grant, other than a stock option or SAR, and which 
is settled by the issuance of common stock, will count as three shares against the share limits. Each share of common stock that is 
actually issued or transferred pursuant to a stock option or SAR will count as one share against the share limits. If and to the extent 
grants under the 201 4 Plan (including stock options granted under the 2007 Plan) terminate, expire, or are canceled, forfeited, 
exchanged, or surrendered without having been exercised, the shares subject to such grants will again be available for purposes  
of the 201 4 Plan, taking into account the ratios described above.

If there is any change in the number or kind of shares of common stock outstanding by reason of a stock dividend, spin-off, 
recapitalization, stock split, or combination or exchange of shares, by reason of a merger, reorganization or consolidation, by reason 
of a recapitalization or change in par value or by reason of any other extraordinary or unusual event affecting the outstanding common 
stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of common stock is substantially 
reduced as a result of a spin-off or the Company’s payment of an extraordinary dividend or distribution, the maximum number of 
shares of common stock available for issuance under the 201 4 Plan, the maximum number of shares of common stock which any 
individual may receive pursuant to grants in any year, the kind and number of shares covered by outstanding grants, the kind and 
number of shares issued and to be issued under the 201 4 Plan, and the price per share or the applicable market value of such grants 
shall be appropriately adjusted by the Committee, in such manner as the Committee deems appropriate, to reflect any increase or 
decrease in the number of, or change in the kind or value of, the issued shares of common stock to preclude, to the extent practicable, 
the enlargement or dilution of rights and benefits under the 201 4 Plan and such outstanding grants.

Unless otherwise set forth in the grant agreement, with respect to stock options, stock units, stock awards, stock appreciation rights 
or other stock based awards, if (a) a change of control occurs and (b) during the period commencing on the date of the change of 
control and ending on the date that is 24 months following the change of control, the participant’s employment or service is 
terminated (i) by the Company or its subsidiaries without “cause” (as defined in the 201 4 Plan), (ii) by the participant for “good reason” 
(as defined in the 201 4 Plan), (iii) by the Company or its subsidiaries on account of the participant’s Disability (as defined in the 201 4 
Plan), or (iv) on account of the participant’s death, then all outstanding stock options and stock appreciation rights will vest and 
become exercisable and all other outstanding grants will vest and all restrictions pertaining to such other grants will lapse and have 
no further effect.

6 8

The Board of Directors may amend or terminate the 201 4 Plan at any time, subject to shareholder approval. No grants may be issued 
under the 201 4 Plan after May 20, 2024.

As of December 31 , 201 4, options to acquire 1 7,1 64,907 shares were outstanding under the 201 4 Plan, out of a total of 46,934,334 
shares of common stock reserved for issuance under the 201 4 Plan. The 201 4 Plan authorizes the issuance of an additional 
30,000,000 new shares of common stock. This is in addition to 1 6,235,71 2 shares of common stock which were subject to 
outstanding grants under the 2007 Plan as of the Effective Date and 698,622 shares of common stock which remained available  
for issuance or transfer under the 2007 Plan but not subject to previously exercised, vested or paid grants as of the Effective Date.  
A total of 28,626,322 shares of common stock remain available for issuance under the 201 4 Plan for future grants.

The 2007 Equity Compensation Plan:
On April 3, 2007, the Board of Directors adopted the 2007 Equity Compensation Plan (the 2007 Plan), and the Company’s shareholders 
approved the adoption of the 2007 Plan on May 23, 2007. The 2007 Plan provided for grants of stock options (incentive stock options 
and nonqualified stock options) and stock appreciation rights (SARs) to all employees (including employees who are also directors) of 
the Company or its subsidiaries, consultants who perform valuable services to the Company or its subsidiaries and members of the 
Board of Directors who are not employees of the Company. The Company did not grant any incentive stock options or stock 
appreciation rights under the 2007 Plan.

The 2007 Plan has been merged with and into the 201 4 Plan as of May 21 , 201 4. Outstanding grants under the 2007 Plan will continue 
according to the terms in effect before the plan merger, but the outstanding shares with respect to those outstanding grants will be 
issued or transferred under the 201 4 Plan. No additional grants shall be made after May 21 , 201 4 under the 2007 Plan.

The 1 998 Equity Compensation Plan:
On May 21 , 1 998, the Board of Directors adopted the 1 998 Equity Compensation Plan (the 1 998 Plan), and the Company’s 
shareholders approved the adoption of the 1 998 Plan. The Board of Directors had made certain amendments to the 1 998 Plan after  
its adoption that did not require shareholder approval. The 1 998 Plan was most recently amended and restated in May 2003.  
The 1 998 Plan provided for grants of stock options (incentive stock options and nonqualified stock options), stock appreciation  
rights, restricted stock and performance units to all employees (including employees who were also directors) of the Company or its 
subsidiaries, consultants and advisors who performed valuable services to the Company or its subsidiaries and members of the Board 
of Directors who were not employees of the Company. The Company did not grant any incentive stock options, stock appreciation 
rights, restricted stock or performance units under the 1 998 Plan. The 1 998 Plan was terminated by the Board of Directors in April 
2007, and no further options, stock appreciation rights, restricted stock and performance units may be granted. However, options 
granted under the 1 998 Plan prior to its termination continue in effect under the terms of the grant and the 1 998 Plan.

All options that were granted under the 1998 Plan to employees and consultants were granted at the fair market value of the Company’s 
common stock on the date of grant, become exercisable ratably upon the attainment of specific diluted earnings per share targets or in 
their entirety after seven years from the date of grant (for grants prior to 2006), and expire ten years from the date of grant.

As of December 31 , 201 4, options to acquire 3,296,050 shares were outstanding under the 1 998 Plan, out of a total of 40,444,000 
shares of common stock reserved for issuance under the 1 998 Plan.

Item 1 3. Certain Relationships and Related Transactions, and Director 
Independence.

Information required by this item is set forth under the captions “Election of Directors,” “Executive Compensation,” and “Director 
Compensation” in the Company’s definitive proxy statement to be filed pursuant to Regulation 1 4A, which information is incorporated 
herein by reference.

Item 1 4. Principal Accounting Fees and Services.

Information required by this item is set forth under the caption “Ratification or Appointment of Independent Public Accountants” in the 
Company’s definitive proxy statement to be filed pursuant to Regulation 1 4A, which information is incorporated herein by reference.

6 9

 
PART IV

Item 1 5. Exhibits, Financial Statement Schedules.

1 and 2. 

 Financial Statements and Financial Statement Schedules. The following is a list of the Consolidated Financial 
Statements of the Company and its subsidiaries and supplementary data filed as part of Item 8 hereof:

Reports of Independent Registered Public Accounting Firms

Consolidated Balance Sheets — December 31 , 201 4 and 201 3

Consolidated Statements of Operations — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Comprehensive Income — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Changes in Equity — For the years ended December 31 , 201 4, 201 3 and 201 2

Consolidated Statements of Cash Flows — For the years ended December 31 , 201 4, 201 3 and 201 2

Notes to Consolidated Financial Statements

Schedule II — Valuation and Qualifying Accounts and Reserves — For the years ended December 31, 2014, 2013 and 2012

All other schedules are omitted because they are not applicable, or not required, or because the required information is 
included in the Consolidated Financial Statements or notes thereto.

3. 

Exhibits, Including Those Incorporated by Reference. The exhibits to this Report are listed on the accompanying index 
to exhibits and are incorporated herein by reference or are filed as part of this Annual Report on Form 1 0-K.

7 0

 
 
 
 
 
 
 
 
 
Signatures

Pursuant to the requirements of Section 1 3 or 1 5(d) of the Securities Exchange Act of 1 934, the Registrant has duly caused this report 
to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:

February 23, 2015

SEI INVESTMENTS COMPANY
By:

/s/ Dennis J. McGonigle
Dennis J. McGonigle
Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1 934, this report has been signed below by the following persons on 
behalf of the Registrant and in the capacities and on dates indicated.

Date:

February 23, 2015

By:

/s/ Alfred P. West, Jr.
Alfred P. West, Jr.
Chairman of the Board, Chief Executive Officer, and Director

Date:

February 23, 2015

By:

Date:

February 23, 2015

By:

Date:

February 23, 2015

By:

Date:

February 23, 2015

By:

Date:

February 23, 2015

By:

Date:

February 23, 2015

By:

/s/ Carmen V. Romeo
Carmen V. Romeo
Director

/s/ Richard B. Lieb
Richard B. Lieb
Director

/s/ William M. Doran
William M. Doran
Director

/s/ Kathryn M. McCarthy
Kathryn M. McCarthy
Director

/s/ Sarah W. Blumenstein
Sarah W. Blumenstein
Director

/s/ Carl A. Guarino
Carl A. Guarino
Director

7 1

 
Exhibit Index

The following is a list of exhibits filed as part of this annual report on Form 1 0-K. For exhibits incorporated by reference, the location 
of the exhibit in the previous filing is indicated in parentheses.

3.1  

3.1 .2 

3.1 .3 

3.1 .4 

3.1 .5 

3.2 

3.2.1  

4.1  

4.2 

Articles of Incorporation of the Registrant as amended on January 21 , 1 983. (Incorporated by reference to exhibit 3.1  to 
the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 1 982.)

Amendment to Articles of Incorporation of the Registrant, dated May 21 , 1 992. (Incorporated by reference to exhibit 3.1 .2 
to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 1 992.)

Amendment to Articles of Incorporation of the Registrant, dated May 26, 1 994. (Incorporated by reference to exhibit 
3.1 .3 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 1 994.)

Amendment to Articles of Incorporation of the Registrant, dated November 21 , 1 996. (Incorporated by reference to 
exhibit 3.1 .4 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 1 996.)

Amendment to Articles of Incorporation of the Registrant, dated February 1 4, 2001 . (Incorporated by reference to exhibit 
3.1 .4 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 2000.)

Amended and Restated By-Laws. (Incorporated by reference to exhibit 3.2 to the Registrant’s Current Report on Form 
8-K dated January 6, 2009.)

Amendment of Section 3.02 of the Amended and Restated Bylaws. (Incorporated by reference to exhibit 3.2.1  to the 
Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 201 0.)

Rights Agreement dated January 6, 2009. (Incorporated by reference to exhibit 4.1  to the Registrant’s Current Report on 
Form 8-K dated January 6, 2009.)

Statement with Respect to Shares of a Domestic Corporation amending the designations of Series A Junior Participating 
Preferred Shares as a series of the Series Preferred Stock of the Company, dated January 6, 2009. (Incorporated by 
reference to exhibit 4.1  to the Registrant’s Current Report on Form 8-K dated January 6, 2009.)

Note: Exhibits 1 0.4 through 1 0.1 1  constitute the management contracts and executive compensatory plans or arrangements in which 
certain of the directors and executive officers of the Registrant participate.

1 0.4 

1 0.4.1  

1 0.5 

1 0.6 

1 0.9 

1 0.1 0 

1 0.1 1  

1 0.22 

1 0.22.1  

1 0.22.2 

1 998 Equity Compensation Plan, Amended and Restated as of April 8, 2003. (Incorporated by reference to exhibit 99.1  to 
the Registrant’s Registration Statement on Form S-8 (No. 333-1 1 1 224) filed December 1 6, 2003.)

Amendment 2006-1  to the 1 998 Equity Compensation Plan, Amended and Restated as of April 8, 2003. (Incorporated by 
reference to exhibit 1 0.4.1  to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 2006.)

Employee Stock Purchase Plan as Amended and Restated on May 20, 2008. (Incorporated by reference to the 
Registrant’s Current Report on Form 8-K dated May 20, 2008.)

SEI Capital Accumulation Plan. (Incorporated by reference to exhibit 99(e) to the Registrant’s Registration Statement on 
Form S-8 (No. 333-41 343) filed December 2, 1 997.)

Employment Agreement, dated June 25, 2004, between N. Jeffrey Klauder and the Registrant. (Incorporated by 
reference to exhibit 1 0.9 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 2006.)

2007 Equity Compensation Plan. (Incorporated by reference to exhibit 1 0.1 0 to the Registrant’s Current Report on Form 
8-K dated April 1 1 , 2007.)

201 4 Omnibus Equity Compensation Plan. (Incorporated by reference to exhibit 1 0.1 1  to the Registrant’s Current Report 
on Form 8-K dated May 21 , 201 4.)

Credit Facility, dated January 1 4, 2003 between Royal Bank of Canada and SEI Investments Canada Company, a 
subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 1 0.22 to the Registrant’s Annual Report on 
Form 1 0-K for the fiscal year ended December 31 , 2005.)

First Amendment, dated June 1 5, 2005 to Credit Facility, dated January 1 4, 2003 between Royal Bank of Canada and SEI 
Investments Canada Company, a subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 1 0.22.1  to 
the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 2005.)

Second Amendment, dated February 20, 2006 to Credit Facility, dated January 1 4, 2003 between Royal Bank of Canada 
and SEI Investments Canada Company, a subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 
1 0.22.2 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 2005.)

1 0.24 

$300,000 Credit Agreement, dated February 2, 201 2, among SEI Investments Company, the Lenders Party thereto, U.S. 
Bank National Association, as Syndication Agent, Citizens Bank of Pennsylvania and Manufacturers and Traders Trust 

7 2

1 0.25 

1 4 

21  * 

23.1  * 

23.2 * 

23.3 * 

23.4 * 

31 .1  * 

31 .2 * 

32 * 

99.1  

99.2 

99.3 

99.4 

Company, each as Documentation Agent, and Wells Fargo Bank, National Association, as Administrative Agent 
(Incorporated by reference to exhibit 1 0.24 to the Registrant’s Current Report on Form 8-K/A dated February 2, 201 2.)

Guaranty and Collateral Agreement dated as of October 1 , 201 2 among SEI Investments Company, LSV Employee Group 
III, LLC, and The PrivateBank and Trust Company. (Incorporated by reference to exhibit 1 0.25 to the Registrant’s Current 
Report on Form 8-K dated October 1 , 201 2.)

Code of Ethics for Senior Financial Officers. (Incorporated by reference to exhibit 1 4 to the Registrant’s Annual Report on 
Form 1 0-K for the fiscal year ended December 31 , 2003.)

Subsidiaries of the Registrant.

Consent of KPMG LLP.

Consent of KPMG LLP relating to the financial statements of LSV Asset Management.

Consent of PricewaterhouseCoopers LLP.

Consent of PricewaterhouseCoopers LLP relating to the financial statements of LSV Asset Management.

Rule 1 3a-1 5(e)/1 5d-1 5(e) Certification of Chief Executive Officer.

Rule 1 3a-1 5(e)/1 5d-1 5(e) Certification of Chief Financial Officer.

Section 1 350 Certifications.

Financial Statements of LSV Asset Management dated December 31 , 201 0 and 2009. (Incorporated by reference to 
exhibit 99.1  to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 201 0.)

Financial Statements of LSV Asset Management dated December 31 , 201 1  and 201 0. (Incorporated by reference to 
exhibit 99.2 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 201 1 .)

Financial Statements of LSV Asset Management dated December 31 , 201 2 and 201 1 . (Incorporated by reference to 
exhibit 99.3 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 201 2.)

Financial Statements of LSV Asset Management dated December 31 , 201 3 and 201 2. (Incorporated by reference to 
exhibit 99.4 to the Registrant’s Annual Report on Form 1 0-K for the fiscal year ended December 31 , 201 3.)

99.5 * 

Financial Statements of LSV Asset Management dated December 31 , 201 4 and 201 3.

1 01 .INS * 

XBRL Instance Document

1 01 .SCH * 

XBRL Taxonomy Extension Schema Document

1 01 .CAL * 

XBRL Taxonomy Extension Calculation Linkbase Document

1 01 .LAB * 

XBRL Taxonomy Extension Label Linkbase Document

1 01 .PRE * 

XBRL Taxonomy Extension Presentation Linkbase Document

1 01 .DEF * 

XBRL Taxonomy Extension Definition Linkbase Document

* 

Filed herewith as an exhibit to this Annual Report on Form 1 0-K.

7 3

 
EXHIBIT 31 .1

Certifications
I, Alfred P. West, Jr., certify that:

1 .    I have reviewed this Annual Report on Form 1 0-K of SEI Investments Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact 

necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading 
with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all 
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods 
presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures 

(as defined in Exchange Act Rules 1 3a-1 5(e) and 1 5d-1 5(e)) and internal control over financial reporting (as defined in Exchange Act 
Rules 1 3a-1 5(f) and 1 5d-1 5(f)) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under 
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made 
known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed 
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 
financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions 
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on 
such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the 

registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially 
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial 
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the 
equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting  
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial 
information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s 

internal control over financial reporting.

Date:

February 23, 2015

By:

/s/ Alfred P. West, Jr.
Alfred P. West, Jr.
Chairman and Chief Executive Officer

74

 
 
 
 
 
 
Exhibit 31 .2

Certifications
I, Dennis J. McGonigle, certify that:

1 .    I have reviewed this Annual Report on Form 1 0-K of SEI Investments Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact 

necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading 
with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all 
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods 
presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures 

(as defined in Exchange Act Rules 1 3a-1 5(e) and 1 5d-1 5(e)) and internal control over financial reporting (as defined in Exchange Act 
Rules 1 3a-1 5(f) and 1 5d-1 5(f)) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under 
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made 
known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed 
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 
financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions 
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on 
such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the 

registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially 
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial 
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the 
equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting  
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial 
information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s 

internal control over financial reporting.

Date:

February 23, 2015

By:

/s/ Dennis J. McGonigle
Dennis J. McGonigle
Chief Financial Officer

7 5

 
 
 
 
 
 
 
Exhibit 32

Certification Pursuant To 1 8 U.S.C. Section 1 350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley  
Act of 2002
I, Alfred P. West, Jr., Chairman and Chief Executive Officer, and I, Dennis J. McGonigle, Chief Financial Officer, of SEI Investments 
Company, a Pennsylvania corporation (the “Company”), hereby certify that, to my knowledge:

(1 )   The Company’s Quarterly Report on Form 1 0-K for the annual period ended December 31 , 201 4 (the “Form 1 0-K”) fully complies 

with the requirements of Section 1 3(a) of the Securities Exchange Act of 1 934; and 

(2)   The information contained in the Form 1 0-K fairly presents, in all material respects, the financial condition and results of 

operations of the Company.

Date:

February 23, 2015

Date:

February 23, 2015

/s/ Alfred P. West, Jr.
Alfred P. West, Jr.
Chairman and Chief Executive Officer

/s/ Dennis J. McGonigle
Dennis J. McGonigle
Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the 
Company and furnished to the Securities and Exchange Commission or its staff upon request.

7 6

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7 7

 
[  This Page Intentionally Left Blank  ]

7 8

SEI Investments Company 

( NASDAQ: SEIC )

›› Corporate Headquarters 

1 Freedom Valley Drive, P.O. Box 1 1 00 
Oaks, Pennsylvania 1 9456-1 1 00 
61 0-676-1 000

›› Shareholder Assistance 

Contact your investment advisor regarding positions held in your accounts with their 
firms. For questions about positions registered in your name, contact:

 American Stock Transfer & Trust Company, LLC 
6201 15th Avenue 
Brooklyn, NY 1 121 9 
800-937-5449

Board of Directors

Executive Officers

Alfred P. West, Jr.
Chairman and Chief Executive Officer 
SEI

Sarah W. Blumenstein
Philanthropic Consultant

William M. Doran
Consultant. Retired Partner 
Morgan, Lewis & Bockius, LLP (Law Firm)

Carl A. Guarino
Private Investor

Richard B. Lieb
Private Investor

Kathryn M. McCarthy
Independent Consultant and Financial Advisor

Carmen V. Romeo
Private Investor

Alfred P. West, Jr.
Chairman and Chief Executive Officer

Kevin P. Barr
Executive Vice President

Robert F. Crudup
Executive Vice President

Kathy C. Heilig
Vice President and Controller

N. Jeffrey Klauder
Executive Vice President and General Counsel

Edward D. Loughlin
Executive Vice President

Dennis J. McGonigle
Executive Vice President and Chief Financial Officer

Stephen G. Meyer
Executive Vice President

Mark H. Samuels
Executive Vice President

Joseph P. Ujobai
Executive Vice President

Wayne M. Withrow
Executive Vice President

 
1 Freedom Valley Drive
Oaks, PA 19456-1100
610-676-1000
seic.com

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