Marketable Securities

9 Months Ended

Sep. 30, 2011

Marketable Securities

Marketable Securities

Note 6. Marketable Securities

Investments Available for Sale

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


		As of September 30, 2011
		Cost Amount				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
SEI-sponsored mutual funds		$	8,778			$	67			$	(593	)		$	8,252
Other mutual funds			109				13				0				122
Debt securities			65,354				4,250				0				69,604

		$	74,241			$	4,330			$	(593	)		$	77,978

		As of December 31, 2010
		Cost Amount				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
SEI-sponsored mutual funds		$	5,086			$	279			$	(14	)		$	5,351
Other mutual funds			443				59				0				502
Debt securities			67,118				1,799				0				68,917

		$	72,647			$	2,137			$	(14	)		$	74,770

Net unrealized holding gains at September 30, 2011 and December 31, 2010 were $2,354 (net of income tax expense of $1,383) and $1,339 (net of income tax expense of $784), respectively. These net unrealized gains are reported as a separate component of Accumulated other comprehensive income on the accompanying Consolidated Balance Sheets.

Gross realized gains and losses from available-for-sale securities during the nine months ended September 30, 2011 and 2010 were minimal. Gains and losses from available-for-sale securities are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

The Company's debt securities classified as available-for-sale securities are issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased to satisfy applicable regulatory requirements of SEI Private Trust Company (SPTC) and have maturity dates which range from 2020 to 2041.

Trading Securities

Trading securities of the Company consist of:


		As of September 30, 2011
		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
SIV securities		$	149,850			$	0			$	(94,217	)		$	55,633
LSV-sponsored mutual funds			2,049				1,448				0				3,497

		$	151,899			$	1,448			$	(94,217	)		$	59,130

		As of December 31, 2010
		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
SIV securities		$	231,026			$	0			$	(130,381	)		$	100,645
LSV-sponsored mutual funds			2,049				1,900				0				3,949

		$	233,075			$	1,900			$	(130,381	)		$	104,594

The Company records all of its trading securities 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 Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

Through September 30, 2011, the Company recognized $140,707 in cumulative losses from SIV securities and SIV-related issues. During the nine months ended September 30, 2011 and 2010, the Company recognized net gains from SIV securities of $4,128 and $29,990, respectively. Of the net gains recognized during the nine months ended September 30, 2011, gains of $8,430 resulted from cash payments received from the SIV securities offset by losses of $4,302 which resulted from a decrease in fair value at September 30, 2011. Of the gains recognized during the nine months ended September 30, 2010, $19,390 resulted from cash payments received from the SIV securities and $10,217 was from an increase in fair value at September 30, 2010. The net gains from the SIV securities are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

In January 2011, the Company sold the senior note obligation originally issued by Stanfield Victoria. There was no gain or loss recognized by the Company from the sale of the note in 2011 as the fair value of the Stanfield Victoria note at December 31, 2010 was not different than the sale price received.

The Company has an investment related to the startup of mutual funds sponsored by LSV. These are U.S. dollar denominated funds that invest primarily in securities of Canadian, Australian and Japanese companies as well as various other global securities. The underlying securities held by the funds are translated into U.S. dollars within the funds. The net gains (losses) from the change in fair value of the funds during the three and nine months ended September 30, 2011 and 2010 were minimal.

Securities Owned

During 2011, the Company's broker-dealer subsidiary, SIDCO, made 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 $20,032 at September 30, 2011. The changes in fair value recognized in the three and nine months ended September 30, 2011 were minimal.