Marketable Securities

12 Months Ended

Dec. 31, 2019

The Company prospectively adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) on January 1, 2018 which requires the Company to recognize all changes in fair value of available-for-sale equity securities in current period earnings. Previously, these changes in fair value were recognized as a separate component of comprehensive income.

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

Cash Equivalents

The Company's investments in money market funds and commercial paper classified as cash equivalents had a fair value of $543,765 and $419,154 at December 31, 2019 and 2018, respectively. There were no material unrealized or realized gains or losses from these investments during 2019 and 2018.

Available For Sale and Equity Securities

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



	At December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for sale debt securities	$	104,193	$	605	$	—		$	104,798
SEI-sponsored mutual funds	7,564		125		(39		)	7,650
Equities and other mutual funds	3,637		832		—			4,469
	$	115,394	$	1,562	$	(39	)	$	116,917



	At December 31, 2018
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for sale debt securities	$	103,518	$	—	$	(1,835	)	$	101,683
SEI-sponsored mutual funds	7,446		—		(788		)	6,658
Equities and other mutual funds	3,434		126		—			3,560
	$	114,398	$	126	$	(2,623	)	$	111,901

Net unrealized holding gains at December 31, 2019 of the Company's available-for-sale debt securities were $465 (net of income tax expense of $140). Net unrealized losses at December 31, 2018 of the Company's available-for-sale debt securities were $1,413 (net of income tax benefit of $422). These net unrealized gains and losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets.

There were gross realized losses of $493 and $550 from available-for-sale debt securities during 2019 and 2018, respectively. There were no gross realized gains from available-for-sale debt securities during 2019 and 2018. Realized losses from available-for-sale debt securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations.

There were gross realized gains of $297 and gross realized losses of $48 from mutual funds and equities during 2019. In 2018, there were gross realized gains of $1,065 and gross realized losses of $1,136 from mutual funds and equities. Gains and losses from mutual funds and equities are reflected in Net gain (loss) 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 (loss) from investments on the accompanying Consolidated Statements of Operations.

The investment primarily consists of U.S. dollar denominated funds that invest 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 $5,988 and $4,887 at December 31, 2019 and 2018, respectively. The Company recognized

gains of $1,101 and $1,176 from the change in fair value of the funds during 2019 and 2017, respectively. The Company recognized losses of $1,147 from the change in fair value of the funds during 2018.

Securities Owned

The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $33,486 and $30,892 at December 31, 2019 and 2018, respectively. There were no material net gains or losses from the change in fair value of the securities during 2019, 2018 and 2017.