Investment Securities (Tables)

6 Months Ended

Jun. 30, 2017


	June 30,		December 31,
	2017		2016
		(in thousands)
Available for sale securities:
Certificates of deposit	$	10,001	—
Commercial paper		4,985	—
Corporate bonds		34,147	—
Sponsored funds		145,937	122,806
Sponsored privately offered funds		—	570
Total available for sale securities		195,070	123,376
Trading securities:
Mortgage-backed securities		12	13
Corporate bonds		16,098	—
Common stock		110	101
Consolidated sponsored funds		215,116	145,710
Sponsored funds		30,945	29,541
Sponsored privately offered funds		631	—
Total trading securities		262,912	175,365
Equity method securities:
Sponsored funds		40,154	26,775
Sponsored privately offered funds		3,691	3,234
Total equity method securities		43,845	30,009
Total securities	$	501,827	328,750

Summary of maturities of securities held

Certificates of deposit, commercial paper and corporate bonds accounted for as available for sale and held as of June 30, 2017 mature as follows:


		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	24,008	24,007
After one year but within five years		20,140	20,126
After 10 years		5,000	5,000
	$	49,148	49,133

Mortgage-backed securities and corporate bonds accounted for as trading and held as of June 30, 2017 mature as follows:


		Fair value
		(in thousands)
Within one year	$	6,014
After one year but within five years		10,089
After five years but within 10 years		7
	$	16,110

Summary of the gains (losses) related to securities

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at June 30, 2017:


	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Certificates of deposit	$	10,000	2	(1)	10,001
Commercial paper		4,981	4	—	4,985
Corporate bonds		34,166	1	(20)	34,147
Sponsored funds		149,078	1,630	(4,771)	145,937
	$	198,225	1,637	(4,792)	195,070

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2016:


	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Sponsored funds	$	129,427	828	(7,449)	122,806
Sponsored privately offered funds		265	305	—	570
	$	129,692	1,133	(7,449)	123,376

Summary of available for sale sponsored funds with fair values below carrying values


	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
June 30, 2017	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Certificates of deposit	$	4,999	(1)	—	—	4,999	(1)
Corporate bonds		24,146	(20)	—	—	24,146	(20)
Sponsored funds		33,506	(1,190)	35,900	(3,581)	69,406	(4,771)
	$	62,651	(1,211)	35,900	(3,581)	98,551	(4,792)

Less than 12 months

12 months or longer

Total

Unrealized

December 31, 2016

Fair value

losses

Fair value

losses

Fair value

losses

(in thousands)

Sponsored funds

71,051

(1,834)

34,182

(5,615)

105,233

(7,449)

Summary of balances related to consolidated sponsored funds as well the company’s net interest in these funds


	June 30,		December 31,
	2017		2016
	(in thousands)
Cash	$	3,706	6,885
Investments		215,116	145,710
Other assets		7,847	763
Other liabilities		(6,800)	(390)
Redeemable noncontrolling interests		(28,718)	(10,653)
Net interest in consolidated sponsored funds	$	191,151	142,315

Schedule of fair value of investment securities


June 30, 2017	Level 1		Level 2	Level 3	Other Assets Not Held at Fair Value	Total
	(in thousands)
Available for sale securities:
Certificates of deposit	$	—	10,001	—	—	10,001
Commercial paper		—	4,985	—	—	4,985
Corporate bonds		—	34,147	—	—	34,147
Sponsored funds		145,937	—	—	—	145,937
Trading securities:
Mortgage-backed securities		—	12	—	—	12
Corporate bonds		—	16,098	—		16,098
Common stock		110	—	—	—	110
Consolidated sponsored funds		132,187	82,929	—	—	215,116
Sponsored funds		30,945	—	—	—	30,945
Sponsored privately offered funds measured at net asset value (1)		—	—	—	631	631
Equity method securities: (2)
Sponsored funds		40,154	—	—	—	40,154
Sponsored privately offered funds measured at net asset value (1)		—	—	—	3,691	3,691
Total	$	349,333	148,172	—	4,322	501,827


December 31, 2016	Level 1		Level 2	Level 3	Other Assets Not Held at Fair Value	Total
	(in thousands)
Available for sale securities:
Sponsored funds	$	122,806	—	—	—	122,806
Sponsored privately offered funds measured at net asset value (1)		—	—	—	570	570
Trading securities:
Mortgage-backed securities		—	13	—	—	13
Common stock		101	—	—	—	101
Consolidated sponsored funds		100,847	44,863	—	—	145,710
Sponsored funds		29,541	—	—	—	29,541
Equity method securities: (2)
Sponsored funds		26,775	—	—	—	26,775
Sponsored privately offered funds measured at net asset value (1)		—	—	—	3,234	3,234
Total	$	280,070	44,876	—	3,804	328,750

(1)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.

Substantially all of the Company’s equity method investments are investment companies that record their underlying investments at fair value.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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