Marketable Securities

9 Months Ended

Sep. 30, 2020

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 $412,663 and $543,765 at September 30, 2020 and December 31, 2019, respectively. There were no material unrealized or realized gains or losses from these investments during the nine months ended September 30, 2020 and 2019. The Company's investments in money market funds and commercial paper are Level 1 assets.

Available for Sale and Equity Securities

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


	At September 30, 2020
	Cost Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Available-for-sale debt securities	$	103,365	$	2,106	$	—	$	105,471
SEI-sponsored mutual funds	6,793		63		(277)		6,579
Equities and other mutual funds	3,605		909		—		4,514
	$	113,763	$	3,078	$	(277)	$	116,564


	At December 31, 2019
	Cost Amount		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

Net unrealized gains at September 30, 2020 of the Company's available-for-sale debt securities were $1,622 (net of income tax expense of $484). Net unrealized gains at December 31, 2019 of the Company's available-for-sale debt securities were $465 (net of income tax expense of $140). These net unrealized gains are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets.

There were gross realized losses of $582 and $347 from available-for-sale debt securities during the nine months ended September 30, 2020 and 2019, respectively. There were no gross realized gains from available-for-sale debt securities during the nine months ended September 30, 2020 and 2019. 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 $254 and gross realized losses of $250 from mutual funds and equities during the nine months ended September 30, 2020. Gains and losses from mutual funds and equities during the nine months ended September 30, 2019 were immaterial. 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 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 gain (loss) from investments on the accompanying Consolidated Statements of Operations.

The investment primarily consists of 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 funds had a fair value of $5,207 and $5,988 at September 30, 2020 and December 31, 2019, respectively. The Company recognized unrealized gains of $458 and $99 during the three months ended September 30, 2020 and 2019, respectively, from the change in fair value of the funds. The Company recognized unrealized losses of $781 and unrealized gains of $646 during the nine months ended September 30, 2020 and 2019, respectively, from the change in fair value of the funds.

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 $35,820 and $33,486 at September 30, 2020 and December 31, 2019, respectively. There were no material net gains or losses related to the securities during the three and nine months ended September 30, 2020 and 2019.