Investment Securities (Tables)

3 Months Ended

Mar. 31, 2018


	March 31,		December 31,
	2018		2017
		(in thousands)
Available for sale securities:
Certificates of deposit	$	7,998	12,999
Commercial paper		—	34,978
Corporate bonds		178,719	197,442
U.S. Treasury bills		19,617	19,779
Total available for sale securities		206,334	265,198
Trading debt securities:
Certificates of deposit		1,998	1,999
Corporate bonds		54,833	55,414
U.S. Treasury bills		4,885	4,929
Mortgage-backed securities		9	10
Consolidated sponsored funds		62,093	62,038
Total trading securities		123,818	124,390
Equity securities:
Common stock		130	116
Sponsored funds(1)		137,290	137,857
Sponsored privately offered funds		728	695
Consolidated sponsored funds		79,409	77,048
Total equity securities		217,557	215,716
Equity method securities:
Sponsored funds		94,528	95,188
Total securities	$	642,237	700,492

(1)Includes $124.0 million of investments at December 31, 2017, that were previously reported as available for sale securities prior to the adoption of ASU 2016-01 on January 1, 2018. Refer to Note 1 – Description of Business and Significant Accounting Policies – Basis of Presentation.

Summary of maturities of securities held

Certificates of deposit, corporate bonds and U.S. Treasury bills accounted for as available for sale and held as of March 31, 2018 mature as follows:


		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	58,599	58,355
After one year but within five years		150,279	147,979
	$	208,878	206,334

Certificates of deposit, corporate bonds, U.S. Treasury bills and mortgage-backed securities accounted for as trading and held as of March 31, 2018 mature as follows:


		Fair value
		(in thousands)
Within one year	$	17,016
After one year but within five years		39,823
After 10 years		4,886
	$	61,725

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 March 31, 2018:


	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Certificates of deposit	$	8,000	1	(3)	7,998
Corporate bonds		180,861	19	(2,161)	178,719
U.S. Treasury bills		20,017	—	(400)	19,617
	$	208,878	20	(2,564)	206,334

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2017:


	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Certificates of deposit	$	13,000	1	(2)	12,999
Commercial paper		34,836	142	—	34,978
Corporate bonds		198,404	33	(995)	197,442
U.S. Treasury bills		20,019	—	(240)	19,779
	$	266,259	176	(1,237)	265,198

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
March 31, 2018	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Certificates of deposit	$	2,997	(3)	—	—	2,997	(3)
Corporate bonds		173,701	(2,161)	—	—	173,701	(2,161)
U.S. Treasury bills		19,617	(400)	—	—	19,617	(400)
	$	196,315	(2,564)	—	—	196,315	(2,564)


	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
December 31, 2017	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Certificates of deposit	$	2,998	(2)	—	—	2,998	(2)
Corporate bonds		192,409	(995)	—	—	192,409	(995)
U.S. Treasury bills		19,779	(240)	—	—	19,779	(240)
	$	215,186	(1,237)	—	—	215,186	(1,237)

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


	March 31,		December 31,
	2018		2017
	(in thousands)
Cash	$	4,910	8,472
Investments		141,502	139,086
Other assets		3,253	1,588
Other liabilities		(1,826)	(1,040)
Redeemable noncontrolling interests		(18,570)	(14,509)
Net interest in consolidated sponsored funds	$	129,269	133,597

Schedule of fair value of investment securities


March 31, 2018	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	146,461	—	—	—	146,461
Certificates of deposit		—	5,490	—	—	5,490
Commercial paper		—	14,802	—	—	14,802
Total cash equivalents	$	146,461	20,292	—	—	166,753
Available for sale securities:
Certificates of deposit	$	—	7,998	—	—	7,998
Commercial paper		—	—	—	—	—
Corporate bonds		—	178,719	—	—	178,719
U.S. Treasury bills		—	19,617	—	—	19,617
Trading debt securities:
Certificates of deposit		—	1,998	—	—	1,998
Corporate bonds		—	54,833	—		54,833
U.S. Treasury bills		—	4,885	—	—	4,885
Mortgage-backed securities		—	9	—	—	9
Consolidated sponsored funds		—	61,775	318	—	62,093
Equity securities:
Common stock		130	—	—	—	130
Sponsored funds		137,290	—	—	—	137,290
Sponsored privately offered funds		—	—	—	728	728
Consolidated sponsored funds		79,265	142	2	—	79,409
Equity method securities: (3)
Sponsored funds		94,528	—	—	—	94,528
Total	$	311,213	329,976	320	728	642,237


December 31, 2017	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	145,785	—	—	—	145,785
Commercial paper		—	11,064	—	—	11,064
Total cash equivalents	$	145,785	11,064	—	—	156,849
Available for sale securities:
Certificates of deposit	$	—	12,999	—	—	12,999
Commercial paper		—	34,978	—	—	34,978
Corporate bonds		—	197,442	—	—	197,442
U.S. Treasury bills		—	19,779	—	—	19,779
Trading debt securities:
Certificates of deposit		—	1,999	—	—	1,999
Corporate bonds		—	55,414	—		55,414
U.S. Treasury bills		—	4,929	—	—	4,929
Mortgage-backed securities		—	10	—	—	10
Consolidated sponsored funds		—	62,038	—	—	62,038
Equity securities:
Common stock		116	—	—	—	116
Sponsored funds		137,857	—	—	—	137,857
Sponsored privately offered funds measured at net asset value (2)		—	—	—	695	695
Consolidated sponsored funds		77,048	—	—	—	77,048
Equity method securities: (3)
Sponsored funds		95,188	—	—	—	95,188
Total	$	310,209	389,588	—	695	700,492

(1)

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at NAV and are classified as Level 1. Cash investments in commercial paper are measured at cost, which approximates fair value because of the short time between purchase of the instrument and its expected realization, and are classified as Level 2.

(2)

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.

(3)

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

Schedule of activity of investments categorized as Level 3


	2018
	(in thousands)
Level 3 assets at December 31, 2017	$	—
Additions		419
Valuation change		(99)
Level 3 assets at March 31, 2018	$	320