11-K: Annual report of employee stock purchase, savings and similar plans
Published on June 28, 2001
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended December 31, 2000
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OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from _______________ to ______________
Commission file Number 0-10200
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A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
SEI Investments Capital Accumulation Plan
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
SEI Investments Company
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
Report of independent public accountants
To the Plan Administrator of SEI Investments
Capital Accumulation Plan:
We have audited the accompanying statements of net assets available for benefits
of SEI Investments Capital Accumulation Plan (the Plan) as of December 31, 2000
and 1999, and the related statement of changes in net assets available for
benefits for the year ended December 31, 2000. These financial statements and
the supplemental schedule referred to below are the responsibility of the Plan
Administrator. Our responsibility is to express an opinion on these financial
statements and supplemental schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the 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 audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental schedule listed in the
accompanying index is presented for purposes of additional analysis and is not a
required part of the basic financial statements but is supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedule has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
Philadelphia, Pennsylvania
June 4, 2001
SEI Investments Capital Accumulation Plan
Table of contents
SEI Investments Capital Accumulation Plan
Statements of net assets available for benefits
As of December 31, 2000 and 1999
The accompanying notes are an integral part of these financial statements.
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SEI Investments Capital Accumulation Plan
Statement of changes in net assets available for benefits
For the year ended December 31, 2000
Additions:
Additions to net assets attributed to-
Investment income:
Net appreciation in fair value of investments $ 5,529,048
Loan repayments 425,270
Interest 111,926
Dividends 8,240,269
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14,306,513
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Contributions:
Employee 7,868,483
Employer 2,261,347
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10,129,830
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Total additions 24,436,343
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Deductions:
Deductions from net assets attributed to-
Benefits paid to participants 3,059,253
Loans to participants 529,208
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3,588,461
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Net increase 20,847,882
Net assets available for benefits:
Beginning of year 106,343,295
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End of year $ 127,191,177
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The accompanying notes are an integral part of these financial statements.
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SEI Investments Capital Accumulation Plan
Notes to financial statements
December 31, 2000 and 1999
1. Plan description:
The following description of the SEI Investments Capital Accumulation Plan (the
Plan) provides only general information. The Plan, a contributory defined
contribution plan, was established effective January 1983 by the Board of
Directors of the Company. Participants should refer to the Summary Plan Document
for a more complete description of the Plan's provisions. The Plan's sponsor is
SEI Investments Company (SEI or the Company).
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974, (ERISA) as amended. The Plan provides retirement benefits,
including provisions for early retirement and disability benefits, as well as a
tax-deferred savings feature. Generally, an employee will become eligible to
join the Plan after the completion of their first hour of employment. However,
certain employees are not eligible to become participants in the Plan. Any
salary deferral contribution election will not be effective until a later date
as described in the Summary Plan document. A participant may make tax-deferred
contributions to the Plan up to the lesser of 15 percent of eligible
compensation or $10,500 for the calendar year 2000, which are deposited into a
"deferral account."
All Company contributions are discretionary and will be made out of available
profits. The Company's matching contribution may not exceed 4 percent of the
participant's annual eligible compensation or $3,840, whichever is lower, and
will be credited to the participant's matching contribution account. In
addition, the Company may make a contribution to all participants which will be
allocated among eligible participants in the same proportion that each
participant's compensation bears to the aggregate compensation of all
participants. These contributions will be credited to the participant's profit-
sharing account.
Participants are eligible to receive Company contributions at the point when the
participant is eligible to contribute to the Plan. The Company's matching
contributions to the Plan were $2,261,347 and $1,773,864 for 2000 and 1999,
respectively. The Company made no other discretionary contributions during 2000
and 1999.
Investment options:
As of December 31, 2000, contributions may be invested in the following
investment options: SEI Stable Asset Fund, SEI Core Fixed Income Fund, SEI Large
Cap Value Fund, SEI International Equity Fund, SEI Small Cap Growth Fund, SEI
Large Cap Growth Fund, SEI Diversified Moderate Growth Fund, SEI Diversified
Global Growth Fund, SEI Diversified Global Stock Fund, SEI Diversified
Conservative Fund, SEI Emerging Markets Equity Fund, and SEI Investments Company
Common Stock Fund.
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A description of each investment option is provided below:
SEI Stable Asset Fund-This fund is designed to maintain the value of the money
contributed to the Plan and earn interest. The fund invests mostly in
Guaranteed Investment Contracts purchased from insurance companies and other
financial institutions which are either highly rated (AAA or AA) or guaranteed
by the U.S. Government or its agencies. This fund's contract value
approximates fair value.
SEI Core Fixed Income Fund-This fund invests in governmental and corporate
bonds and is structured to earn income without significant price improvement.
SEI Large Cap Value Fund-This fund is structured to invest in equity
securities of large companies. This fund invests in the stocks of companies
whose prices appear low relative to certain fundamental characteristics such
as earnings, book value, or return on equity. The value of the fund will rise
and fall based on these companies' performance.
SEI International Equity Fund-This fund purchases equity securities in
companies outside of the United States. A majority of these investments are
made in European and Asian companies that have a long-term potential for
growth.
SEI Small Cap Growth Fund-This fund invests in equity securities of small
companies. The object of this fund is to allow the investment to grow as the
companies grow.
SEI Large Cap Growth Fund-This fund invests in equity securities of large
companies. The object of this fund is to allow the investment to grow as the
companies grow.
SEI Diversified Moderate Growth Fund-This fund seeks to provide long-term
capital appreciation with a limited level of current income through
investments in equity and fixed-income funds, including non-U.S. Equity funds.
SEI Diversified Global Growth Fund-This fund invests primarily in other equity
funds. The object of this fund is to provide long-term capital appreciation
through participation in both U.S. and international equity markets.
SEI Diversified Global Stock Fund-This fund is designed to provide long-term
capital appreciation through participation in the global equity markets. The
fund achieves this goal primarily through investment in both U.S. and non-U.S.
equities.
SEI Diversified Conservative Fund-This fund invests primarily in money market
and fixed income funds to provide current income with the opportunity for
capital appreciation.
SEI Emerging Markets Equity Fund-This fund seeks to provide capital
appreciation by investing primarily in a diversified portfolio of equity
securities of emerging market issuers.
SEI Investments Company Common Stock Fund-This fund seeks long-term growth by
investing in shares of the Company's Common Stock.
Participants are immediately vested in their salary deferral contributions to
the Plan and all employer contributions credited to their accounts at the time
of contribution plus any earnings thereon.
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Amounts in participants' accounts will be distributed in the form of
installments, an annuity, lump sum amount, or a combination thereof to
participants or their beneficiaries upon termination of employment, retirement,
death, or total disability. Employee contributions in a participant's deferral
account may be withdrawn during employment after the employee reaches age 59 1/2
or upon showing immediate and substantial financial hardship.
Under the tax-deferral feature, a participant is eligible for a loan amount not
to exceed the lesser of $50,000 or 50 percent of the participant's account
balance (excluding the voluntary contribution account balance) reduced by the
highest outstanding loan balance from the Plan during the preceding 12 months.
The minimum loan amount is $1,000. The loans are made at a rate equivalent to
those being charged on similar commercial loans with terms from one year to five
years, except for loans for the purchase of a primary residence, which can have
terms of up to 30 years.
Participants may no longer make post-tax contributions into the Plan, however,
they may withdrawal previously contributed post-tax amounts at any time.
2. Summary of significant accounting policies:
Basis of accounting
The accompanying financial statements are prepared using the accrual basis of
accounting.
Income taxes
The Internal Revenue Service issued a determination letter dated October 11,
1995, stating that the Plan was designed in accordance with applicable Internal
Revenue Code requirements as of that date. The Plan has been amended since
receiving the determination letter. However, the Plan Administrator believes
that the Plan is currently designed and is being operated in compliance with the
applicable requirements of the Code. Therefore, the Plan Administrator believes
that the Plan was qualified and the related trust was tax-exempt for the years
ended December 31, 2000 and 1999.
Valuation of investments
The Plan's investments are stated at market value in the accompanying financial
statements. Quoted market prices are used to value the investment in the
Company's Common Stock. Shares of mutual funds are valued at the net asset value
of shares held by the Plan at year-end.
Management's use of estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires the Plan's management to make
estimates and assumptions that affect the reported amounts of the net assets
available for benefits and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of changes in net
assets available for benefits during the reporting period. Actual results could
differ from those estimates.
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3. Investments:
The fair market values of individual assets that represent five percent or more
of the Plan's net assets available for benefits as of December 31, 2000 and 1999
are as follows:
2000:
SEI Stable Asset Fund $ 9,617,505
SEI Large Cap Value Fund 18,553,540
SEI Small Cap Growth Fund 19,386,634
SEI Large Cap Growth Fund 25,626,408
SEI Diversified Global Stock Fund 7,315,093
SEI Investments Company Common Stock Fund 28,214,877
1999:
SEI Stable Asset Fund $ 6,177,203
SEI Large Cap Value Fund 16,972,035
SEI International Equity Fund 5,497,389
SEI Small Cap Growth Fund 19,738,299
SEI Large Cap Growth Fund 29,732,395
SEI Diversified Global Stock Fund 5,855,416
SEI Investments Company Common Stock Fund 12,325,822
During 2000, the Plan's investments, including gains and losses on investments
bought and sold, as well as held during the year, appreciated in value by
$5,529,048 as follows:
Mutual funds $ (18,256,877)
Common stock 23,785,925
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$ 5,529,048
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4. Plan expenses:
All normal administrative costs of the Plan are paid by the Company.
5. Plan termination:
Although it has no expressed intention to do so, the Company has the right under
the Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions of ERISA.
In the event of whole or partial termination of the Plan, or complete
discontinuance of employer contributions, each participant shall receive a total
distribution of their account.
6. Distributions to participants:
Distributions to terminated participants are generally made as soon as
reasonably possible after notification. Distributions payable to participants at
December 31, 2000 and 1999 amounted to $2,266 and $90,835, respectively.
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7. Reconciliation to form 5500:
Distributions payable to participants are recorded as a liability in the Plan's
Form 5500 and not recorded as a liability in the accompanying statements of net
assets available for benefits in accordance with accounting principles generally
accepted in the United States.
The following table reconciles net assets available for benefits per the
financial statements to the Form 5500 as filed by the Company.
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Schedule H
EIN #: 23-1707341
PIN #: 002
SEI Investments Capital Accumulation Plan
Part iv, item i--Schedule of assets held for investment purposes
As of December 31, 2000
* Represents a party-in-interest.
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