SEI Investments Co. (NASDAQ:SEIC) Q3 2020 Earnings Conference Call - Final Transcript
Oct 21, 2020 • 04:30 pm ET
Dennis J. McGonigle
million in income to SEI during the third quarter of 2020. This compares to a contribution of $37.6 million in income during the third quarter of 2019. Assets during the second -- during the third quarter grew approximately $1 billion. LSV experienced net negative cash flow during the quarter of approximately $2.2 billion, offsetting market appreciation of approximately $3.2 billion.
Revenue was approximately $94.9 million for the quarter with no performance fees. Since I know the question is coming on expenses, I thought I would address that. Expenses grew approximately $13 million or 4% from second quarter 2020 to third quarter 2020. Just under one-half of this expense growth, approximately $6 million relates to salary and other compensation adjustments we made at the beginning of the quarter, consistent with our annual compensation process for most of our workforce as well as continued hiring in areas of growth.
In addition, approximately 20% or $3 million was due to a spike in health insurance costs during the quarter, which are not predictable and driven by actual experience since we are generally self-insured. The final 30% or approximately $4.5 million is essentially one-time in nature, related to some severance expense and professional services fees and costs associated with trade corrections as a result of a couple of incidents disclosed in our second quarter 10-Q. These costs are spread across our segments as well as G&A. I hope that breakdown helps. Finally, our effective tax rate for the quarter was 21.4%.
I will now take any questions you have.