Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investment Securities

Schedule of investment securities

	December 31,		December 31,
	2019		2018
		(in thousands)
Available for sale securities:
Certificates of deposit	$	—	5,001
Commercial paper		1,977	7,970
Corporate bonds		254,291	218,121
U.S. Treasury bills		—	19,672
Total available for sale securities		256,268	250,764
Trading debt securities:
Commercial paper		1,977	1,993
Corporate bonds		84,920	77,250
U.S. Treasury bills		5,979	5,884
Mortgage-backed securities		4	7
Term loans		44,268	—
Consolidated sponsored funds		43,567	33,088
Total trading securities		180,715	118,222
Equity securities:
Common stock		34,945	21,204
Sponsored funds		178,386	153,548
Sponsored privately offered funds		845	678
Consolidated sponsored funds		—	24,879
Total equity securities		214,176	200,309
Equity method securities:
Sponsored funds		37,187	47,840
Total securities	$	688,346	617,135

Summary of maturities of securities held

Commercial paper and corporate bonds accounted for as available for sale and held as of December 31, 2019 mature as follows:

		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	78,072	78,326
After one year but within five years		174,886	177,942
	$	252,958	256,268

Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of December 31, 2019 mature as follows:

		Fair value
		(in thousands)
Within one year	$	30,749
After one year but within five years		78,367
After five years but within 10 years		28,032
	$	137,148

Summary of the gross unrealized 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 December 31, 2019:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Commercial paper	$	1,976	1	—	1,977
Corporate bonds		250,982	3,314	(5)	254,291
	$	252,958	3,315	(5)	256,268

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2018:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Certificates of deposit	$	5,000	1	—	5,001
Commercial paper		7,902	68	—	7,970
Corporate bonds		219,236	254	(1,369)	218,121
U.S. Treasury bills		19,672	—	—	19,672
	$	251,810	323	(1,369)	250,764

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

A summary of available for sale debt securities with fair values below carrying values at December 31, 2019 is as follows:

	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Corporate bonds	$	4,538	—	8,056	(5)	12,594	(5)

A summary of available for sale debt securities with fair values below carrying values at December 31, 2018 is as follows:

	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Corporate bonds	$	36,302	(160)	119,480	(1,209)	155,782	(1,369)

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

The following table details the balances related to consolidated sponsored funds at December 31, 2019 and 2018, as well as the Company’s net interest in these funds:

	December 31,		December 31,
	2019		2018
	(in thousands)
Cash	$	1,530	4,285
Investments		43,567	57,967
Other assets		483	872
Other liabilities		—	(79)
Redeemable noncontrolling interests		(19,205)	(11,463)
Net interest in consolidated sponsored funds	$	26,375	51,582

Schedule of fair value of investment securities

The following tables summarize our investment securities as of December 31, 2019 and 2018 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs.

December 31, 2019	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	4,203	—	—	—	4,203
Commercial paper		—	38,143	—	—	38,143
Total cash equivalents	$	4,203	38,143	—	—	42,346
Available for sale securities:
Commercial paper	$	—	1,977	—	—	1,977
Corporate bonds		—	254,291	—	—	254,291
Trading debt securities:
Commercial paper		—	1,977	—	—	1,977
Corporate bonds		—	84,920	—		84,920
U.S. Treasury bills		—	5,979	—	—	5,979
Mortgage-backed securities		—	4	—	—	4
Term loans		—	40,368	3,900	—	44,268
Consolidated sponsored funds		—	43,567	—	—	43,567
Equity securities:
Common stock		34,942	—	3	—	34,945
Sponsored funds		178,386	—	—	—	178,386
Sponsored privately offered funds measured at net asset value (2)		—	—	—	845	845
Equity method securities: (3)
Sponsored funds		37,187	—	—	—	37,187
Total investment securities	$	250,515	433,083	3,903	845	688,346

December 31, 2018	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	121,759	—	—	—	121,759
U.S. government sponsored enterprise note		—	895	—	—	895
Commercial paper		—	74,277	—	—	74,277
Total cash equivalents	$	121,759	75,172	—	—	196,931
Available for sale securities:
Certificates of deposit	$	—	5,001	—	—	5,001
Commercial paper		—	7,970	—	—	7,970
Corporate bonds		—	218,121	—	—	218,121
U.S. Treasury bills		—	19,672	—	—	19,672
Trading debt securities:
Commercial paper		—	1,993	—	—	1,993
Corporate bonds		—	77,250	—		77,250
U.S. Treasury bills		—	5,884	—	—	5,884
Mortgage-backed securities		—	7	—	—	7
Consolidated sponsored funds		—	33,088	—	—	33,088
Equity securities:
Common stock		21,192	—	12	—	21,204
Sponsored funds		153,548	—	—	—	153,548
Sponsored privately offered funds measured at net asset value (2)		—	—	—	678	678
Consolidated sponsored funds		24,879	—	—	—	24,879
Equity method securities: (3)
Sponsored funds		47,840	—	—	—	47,840
Total investment securities	$	247,459	368,986	12	678	617,135

(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 net asset value 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) 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

The following table summarizes the activity of investments categorized as Level 3 for the year ended December 31, 2019:

	For the year ended
	December 31, 2019
	(in thousands)
Level 3 assets at December 31, 2018	$	12
Purchases		2,607
Transfers in to level 3		3,241
Transfers out of level 3		(1,142)
Losses in Investment and other income		(48)
Redemptions and paydowns		(767)
Level 3 assets at December 31, 2019	$	3,903
Change in unrealized losses for Level 3 assets held at December 31, 2019	$	(13)