Marketable Securities

12 Months Ended

Dec. 31, 2022

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 $450,240 and $422,838 at December 31, 2022 and 2021, respectively. There were no material unrealized or realized gains or losses from these investments during 2022 and 2021.

Available For Sale and Equity Securities

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


	At December 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Available for sale debt securities	$	129,372	$	—	$	(12,071)	$	117,301
SEI-sponsored mutual funds	6,207		—		(176)		6,031
Equities and other mutual funds	5,026		—		(157)		4,869
	$	140,605	$	—	$	(12,404)	$	128,201


	At December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Available for sale debt securities	$	117,215	$	—	$	(80)	$	117,135
SEI-sponsored mutual funds	6,748		463		—		7,211
Equities and other mutual funds	4,935		260		—		5,195
	$	128,898	$	723	$	(80)	$	129,541

Net unrealized holding losses at December 31, 2022 of the Company's available-for-sale debt securities were $9,294 (net of income tax benefit of $2,777). Net unrealized losses at December 31, 2021 of the Company's available-for-sale debt securities were $62 (net of income tax expense of $18). These unrealized losses are associated with the Company’s investments in mortgage-backed securities issued by GNMA and were caused by interest rate increases (See Note 4). The contractual cash flows of these securities are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company's investments. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. 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 $602, $1,160 and $902 from available-for-sale debt securities during 2022, 2021 and 2020, respectively. There were no gross realized gains from available-for-sale debt securities during 2022, 2021 and

2020. Realized losses from available-for-sale debt securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net loss from investments on the accompanying Consolidated Statements of Operations.

There were gross realized gains of $263 and gross realized losses of $773 from mutual funds and equities during 2022. In 2021, there were gross realized gains of $741 and gross realized losses of $72 from mutual funds and equities. In 2020, there were gross realized gains of $1,100 and gross realized losses of $250 from mutual funds and equities. Gains and losses from mutual funds and equities are reflected in Net loss from investments on the accompanying Consolidated Statements of Operations.

Investments in Affiliated Funds

The Company has an investment in 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 loss from investments on the accompanying Consolidated Statements of Operations.

The funds had a fair value of $6,366 and $6,916 at December 31, 2022 and 2021, respectively. The Company recognized losses of $550 during 2022 and gains of $750 and $178 from the change in fair value of the funds during 2021 and 2020, respectively.

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 $32,148 and $28,267 at December 31, 2022 and 2021, respectively. There were no material net gains or losses from the change in fair value of the securities during 2022, 2021 and 2020.