July 22, 2009 - PRESS RELEASE - 8-K: Current report filing

Exhibit 99.1

LOGO


Investor Contact:		Media Contact:

Murray Louis		Dana Grosser
(610) 676-1932		(610) 676-2459
mlouis@seic.com		dgrosser@seic.com
Pages: 8

FOR IMMEDIATE RELEASE

SEI REPORTS SECOND-QUARTER 2009 FINANCIAL RESULTS

OAKS, Pa., July 22, 2009 SEI Investments Company (NASDAQ:SEIC) today announced financial results for second-quarter 2009, reporting decreases in revenues, net income attributable to SEI, and diluted earnings per share compared to second-quarter 2008.

Consolidated Overview


	For the Three Months						For the Six Months
(In thousands, except earnings per share)	Ended June 30,						Ended June 30,
	2009		2008		%		2009		2008		%
Revenues	$	252,009	$	329,523	-24	%	$	500,620	$	663,431	-25	%
Net Income attributable to SEI		41,571		46,164	-10	%		75,771		95,110	-20	%
Diluted Earnings Per Share	$	0.22	$	0.24	-8	%	$	0.40	$	0.48	-17	%

While the capital markets did improve in the second quarter, their still-depressed levels continue to have a significant negative impact on our second-quarter financial results as compared to the second quarter, 2008, said Alfred P. West, Jr., SEI Chairman and CEO.

We have resized our company and put in place certain cost reduction initiatives which are reflected in our second-quarter results. We are concentrating our marketing and sales activities where we have short and intermediate term opportunities for revenue growth. At the same time, our positive cash flow allows us to maintain a strong capital base and balance sheet so we can implement our long-term strategies to grow our business.

In these times, it is especially important to focus on our clients well-being and success. We are firm in our belief that what we are doing today will significantly benefit our clients and SEI both today and in the future.

Summary of Second-Quarter and Year to Date Results by Business Segment


(In thousands)	For the Three Month Period								For the Six Month Period
	Ended June 30,								Ended June 30,
	2009			2008			%		2009			2008			%
Private Banks:
Revenues	$	86,645		$	103,602		-16	%	$	183,593		$	210,656		-13	%
Expenses		70,761			85,367		-17	%		149,559			171,534		-13	%

Operating Profit	$	15,884		$	18,235		-13	%	$	34,034		$	39,122		-13	%
Operating Margin		18	%		18	%				19	%		19	%

Investment Advisors:
Revenues		39,582			61,848		-36	%		77,090			122,367		-37	%
Expenses		25,939			31,551		-18	%		53,048			62,927		-16	%

Operating Profit		13,643			30,297		-55	%		24,042			59,440		-60	%
Operating Margin		34	%		49	%				31	%		49	%

Institutional Investors:
Revenues		42,164			51,300		-18	%		81,543			101,989		-20	%
Expenses		23,264			29,328		-21	%		47,434			59,468		-20	%

Operating Profit		18,900			21,972		-14	%		34,109			42,521		-20	%
Operating Margin		45	%		43	%				42	%		42	%

Investment Managers:
Revenues		33,371			37,307		-11	%		66,703			73,800		-10	%
Expenses		22,245			25,012		-11	%		45,112			50,976		-12	%

Operating Profit		11,126			12,295		-10	%		21,591			22,824		-5	%
Operating Margin		33	%		33	%				32	%		31	%

Investments in New Businesses:
Revenues		1,169			1,864		-37	%		2,423			3,698		-34	%
Expenses		2,325			4,147		-44	%		5,618			8,799		-36	%

Operating Loss		(1,156	)		(2,283	)	49	%		(3,195	)		(5,101	)	37	%
Operating Margin		n/a			n/a					n/a			n/a

LSV:
Revenues		49,078			73,602		-33	%		89,268			150,921		-41	%
Expenses (1)		31,709			45,840		-31	%		58,155			93,196		-38	%

Operating Profit		17,369			27,762		-37	%		31,113			57,725		-46	%
Operating Margin		35	%		38	%				35	%		38	%

Consolidated Segment
Totals:
Revenues	$	252,009		$	329,523		-24	%	$	500,620		$	663,431		-25	%
Expenses		176,243			221,245		-20	%		358,926			446,900		-20	%

Operating Profit	$	75,766		$	108,278		-30	%	$	141,694		$	216,531		-35	%
Operating Margin		30	%		33	%				28	%		33	%

(1)	Includes $24,429 and $38,072 for the three-month period ended June 30, 2009 and 2008, respectively, and $43,291 and $79,310 for the six-month period ended June 30, 2009 and 2008, respectively of noncontrolling interest of the other partners of LSV.

A reconciliation of the totals reported for the business segments to the applicable line items in the Consolidated Statements of Income for the three-and six-month periods ended June 30, 2009 and 2008 is as follows:


	Three months ended June 30,						Six months ended June 30,
	2009			2008			2009			2008
Total operating profit from business segments	$	75,766		$	108,278		$	141,694		$	216,531

Corporate overhead expenses		(8,697	)		(10,347	)		(18,338	)		(20,456	)
Noncontrolling interest reflected in segments		24,737			39,082			43,800			81,270
LSV Employee Group Expenses (1)		(1,820	)		(1,819	)		(3,640	)		(3,640	)


Income from operations	$	89,986		$	135,194		$	163,516		$	273,705

(1)

Includes $1,806 for the three-month period ending June 30, 2009 and 2008, and $3,611 for the six-month period ended June 30, 2009 and 2008 of amortization expense related to intangible assets owned by LSV Employee Group LLC. The amortization is offset through noncontrolling interest since SEI does not have any ownership in LSV Employee Group LLC.

Second-Quarter Business Commentary:

Revenues were down across all segments due to the decline in the capital markets. The Institutional Investors and Investment Managers segments partially offset the negative capital market impact with new business growth. Investment processing revenues helped the Private Banks segment offset the negative capital markets as well.

The second-quarter 2009 results include losses of $2.3 million associated with SIV-related issues involving SEI-sponsored money market funds. SEI has recognized cumulative losses of $200.0 million associated with these SIV-related issues through June 30, 2009. Additional information pertaining to SIV-related issues involving SEI-sponsored money market funds is contained in SEIs 2008 Form 10-K filed February 25, 2009 and SEIs 2009 first-quarter Form 10-Q filed May 4, 2009.

In June 2009, SEI purchased the remaining SIVs from the SLAT Prime Obligation Fund for $57.5 million. SEI borrowed $59.0 million on its credit facility in order to finance the purchase of the notes. As a result of this purchase, SEIs obligation under the Capital Support Agreement with the SLAT Prime Obligation Fund was canceled.

Our obligation under the Capital Support Agreement with the SDIT Prime Obligation Fund is $30.0 million at June 30, 2009.

Assets under management increased by $12.9 billion during the second-quarter 2009 to $135.7 billion, primarily due to market appreciation.

In the second-quarter, SEI purchased 453,000 shares of its common stock for $7.7 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM ET on July 22, 2009. Investors may listen to the call at www.seic.com (Investor Information section), or listen at www.earnings.com, a service of Thomson Streetevents. The call may also be accessed at numerous financial services web sites including AOL and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 107763.

About SEI

SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The companys innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of June 30, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $360 billion in mutual fund and pooled assets and manages $136 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.

Many of the statements in this release may be considered forward looking statements and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)


	Three Months Ended June 30,
	2009			2008
Asset management, admin. and distribution fees	$	183,209		$	260,931
Information processing and software servicing fees		54,694			57,088
Transactionbased and trade execution fees		14,106			11,504


Total revenues		252,009			329,523

Commissions and fees		36,139			43,045
Compensation, benefits and other personnel		67,031			83,529
Consulting, outsourcing and professional fees		18,711			26,611
Data processing and computer related		11,177			11,229
Facilities, supplies and other costs		16,203			18,417
Depreciation and amortization		12,762			11,498


Total expenses		162,023			194,329

Income from operations		89,986			135,194

Net loss on investments		(2,533	)		(27,294	)
Interest and dividend income		1,937			3,223
Interest expense		(1,051	)		(808	)


Income before taxes		88,339			110,315

Income taxes		24,212			27,572


Net income		64,127			82,743


Less: Net income attributable to the noncontrolling interest		(22,556	)		(36,579	)


Net income attributable to SEI	$	41,571		$	46,164


Diluted earnings per common share	$	0.22		$	0.24


Shares used to calculate diluted earnings per common share		191,933			195,992


Basic earnings per common share	$	0.22		$	0.24


Shares used to calculate basic earnings per common share		191,023			192,187

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)


	Six Months Ended June 30,
	2009			2008
Asset management, admin. and distribution fees	$	352,573		$	520,990
Information processing and software servicing fees		116,911			117,227
Transactionbased and trade execution fees		31,136			25,214


Total revenues		500,620			663,431

Commissions and fees		73,692			88,340
Compensation, benefits and other personnel		143,899			167,421
Consulting, outsourcing and professional fees		39,861			53,368
Data processing and computer related		22,692			21,777
Facilities, supplies and other costs		31,636			35,802
Depreciation and amortization		25,324			23,018


Total expenses		337,104			389,726

Income from operations		163,516			273,705

Net loss on investments		(16,983	)		(51,340	)
Interest and dividend income		3,648			7,361
Interest expense		(1,850	)		(1,775	)


Income before taxes		148,331			227,951

Income taxes		33,141			56,747


Net income		115,190			171,204


Less: Net income attributable to the noncontrolling interest		(39,419	)		(76,094	)


Net income attributable to SEI	$	75,771		$	95,110


Diluted earnings per common share	$	0.40		$	0.48


Shares used to calculate diluted earnings per common share		191,671			197,102


Basic earnings per common share	$	0.40		$	0.49


Shares used to calculate basic earnings per common share		191,053			192,908

CONDENSED BALANCE SHEETS

(In thousands)


	(Unaudited) June 30, 2009		December 31, 2008
Assets

Cash and short-term investments	$	493,128	$	416,643
Restricted cash		17,000		14,000
Receivables		207,573		208,209
Other current assets		55,300		100,819


Total current assets		773,001		739,671

Property and equipment, net		144,058		148,124
Marketable securities		165,295		86,693
Capitalized software, net		285,118		270,606
Goodwill		22,842		22,842
Intangible assets, net		48,689		52,518
Other assets, net		19,819		21,261


Total assets	$	1,458,822	$	1,341,715


Liabilities

Current liabilities (1)	$	147,585	$	329,894
Long-term debt		272,288		24,332
Deferred income taxes		96,295		104,548
Long-term liabilities		4,913		4,067

Total SEI Investments Company shareholders equity		836,826		769,152
Noncontrolling interest		100,915		109,722

Total Equity		937,741		878,874

Total liabilities and equity	$	1,458,822	$	1,341,715

(1)	Includes $29,973 and $173,983 at June 30, 2009 and December 31, 2008, respectively, of an accrual related to money market funds support agreements.

SEI INVESTMENTS COMPANY

ASSET BALANCES

(In millions)

(Unaudited)


	Jun. 30, 2008		Sep. 30, 2008		Dec. 31, 2008		Mar. 31, 2009		Jun. 30, 2009
Private Banks:
Equity/Fixed Income prgms.	$	18,163	$	14,436	$	10,573	$	9,679	$	10,892
Collective Trust Fund prgm.		955		1,028		1,145		1,198		1,176
Liquidity funds		8,345		9,253		9,194		8,929		7,581

Total assets under mgmt.	$	27,463	$	24,717	$	20,912	$	19,806	$	19,649

Client assets under admin.		13,242		12,301		10,622		9,920		10,143

Total assets	$	40,705	$	37,018	$	31,534	$	29,726	$	29,792

Investment Advisors:
Equity/Fixed Income prgms.	$	31,938	$	27,817	$	21,631	$	18,832	$	21,705
Collective Trust Fund prgm.		2,259		2,471		2,606		2,716		2,621
Liquidity funds		2,410		2,859		3,436		3,458		2,469

Total assets under mgmt.	$	36,607	$	33,147	$	27,673	$	25,006	$	26,795

Institutional Investors:
Equity/Fixed Income prgms.	$	43,608	$	39,775	$	34,966	$	32,565	$	36,955
Collective Trust Fund prgm.		947		1,001		942		791		755
Liquidity funds		3,950		3,930		4,582		3,802		3,462

Total assets under mgmt.	$	48,505	$	44,706	$	40,490	$	37,158	$	41,172

Investment Managers:
Equity/Fixed Income prgms.	$	19	$	10	$	8	$	3	$	3
Collective Trust Fund prgm.		6,572		6,453		5,974		6,917		6,794
Liquidity funds		438		699		869		898		505

Total assets under mgmt.	$	7,029	$	7,162	$	6,851	$	7,818	$	7,302

Client assets under admin. (A)		228,722		256,553		234,628		221,798		213,930

Total assets	$	235,751	$	263,715	$	241,479	$	229,616	$	221,232

Investments in New Businesses:
Equity/Fixed Income prgms.	$	838	$	704	$	519	$	472	$	473
Liquidity funds		98		115		153		157		133

Total assets under mgmt.	$	936	$	819	$	672	$	629	$	606

LSV Asset Management
Equity/Fixed Income prgms.	$	57,692	$	51,296	$	37,714	$	32,308	$	40,210

Consolidated:
Equity/Fixed Income prgms (B)	$	152,258	$	134,038	$	105,411	$	93,859	$	110,238
Collective Trust Fund prgm.		10,733		10,953		10,667		11,622		11,346
Liquidity funds		15,241		16,856		18,234		17,244		14,150

Total assets under mgmt.	$	178,232	$	161,847	$	134,312	$	122,725	$	135,734

Client assets under admin. (C)		241,964		268,854		245,250		231,718		224,073

Total assets	$	420,196	$	430,701	$	379,562	$	354,443	$	359,807

(A)	Client assets under administration in the Investment Managers segment include $68,673 of assets balances that require limited services and therefore are at fee levels below our normal full service assets.

(B)	Equity/Fixed Income programs include $1,941 of assets invested in various asset allocation funds at June 30, 2009.

(C)	In addition to the numbers presented, SEI also administers an additional $7,483 in Funds of Funds assets (as of June 30, 2009) on which SEI does not earn an administration fee.

Form: 8-K

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