Investment Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investment Securities

Schedule of investment securities

Investment securities at September 30, 2020 and December 31, 2019 were as follows:

	September 30,		December 31,
	2020		2019
		(in thousands)
Available for sale securities:
Commercial paper	$	9,714	1,977
Corporate bonds		180,203	254,291
Total available for sale securities		189,917	256,268
Trading debt securities:
Commercial paper		18,774	1,977
Corporate bonds		70,984	84,920
U.S. Treasury bills		—	5,979
Mortgage-backed securities		1	4
Term loans		44,994	44,268
Consolidated sponsored funds		—	43,567
Total trading securities		134,753	180,715
Equity securities:
Common stock		34,206	34,945
Sponsored funds		149,857	178,386
Sponsored privately offered funds		924	845
Total equity securities		184,987	214,176
Equity method securities:
Sponsored funds		69,687	37,187
Total securities	$	579,344	688,346

Summary of maturities of securities held

Commercial paper and corporate bonds accounted for as available for sale and held as of September 30, 2020 mature as follows:

		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	64,321	65,057
After one year but within five years		121,170	124,860
	$	185,491	189,917

Commercial paper, corporate bonds, mortgage-backed securities and term loans accounted for as trading and held as of September 30, 2020 mature as follows:

		Fair value
		(in thousands)
Within one year	$	29,580
After one year but within five years		83,508
After five years but within 10 years		21,665
	$	134,753

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 September 30, 2020:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Commercial paper	$	9,720	3	(9)	9,714
Corporate bonds		175,771	4,432	—	180,203
	$	185,491	4,435	(9)	189,917

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

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

A summary of available for sale investment securities with fair values below carrying values at September 30, 2020 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)
Commercial paper	$	2,420	(9)	—	—	2,420	(9)

A summary of available for sale investment 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)

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 September 30, 2020 and December 31, 2019, as well as the Company’s net interest in these funds:

	September 30,		December 31,
	2020		2019
	(in thousands)
Cash	$	—	1,530
Investments		—	43,567
Other assets		—	483
Other liabilities		—	—
Redeemable noncontrolling interests		—	(19,205)
Net interest in consolidated sponsored funds	$	—	26,375

Schedule of fair value of investment securities

The following tables summarize our investment securities as of September 30, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs.

September 30, 2020	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	45,007	—	—	—	45,007
Commercial paper		—	23,316	—	—	23,316
Total cash equivalents	$	45,007	23,316	—	—	68,323
Available for sale securities:
Commercial paper	$	—	9,714	—	—	9,714
Corporate bonds	$	—	180,203	—	—	180,203
Trading debt securities:
Commercial paper		—	18,774	—	—	18,774
Corporate bonds		—	70,984	—		70,984
Mortgage-backed securities		—	1	—	—	1
Term loans		—	43,288	1,706	—	44,994
Equity securities:
Common stock		34,206	—	—	—	34,206
Sponsored funds		149,857	—	—	—	149,857
Sponsored privately offered funds measured at net asset value (2)		—	—	—	924	924
Equity method securities: (3)
Sponsored funds		69,687	—	—	—	69,687
Total investment securities	$	253,750	322,964	1,706	924	579,344

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

(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 nine months ended September 30, 2020:

	For the nine months ended
	September 30, 2020
	(in thousands)
Level 3 assets at December 31, 2019	$	3,903
Additions		6,501
Transfers in to level 3		11,086
Transfers out of level 3		(15,622)
Losses in Investment and other income		(1,026)
Redemptions/Paydowns		(3,136)
Level 3 assets at September 30, 2020	$	1,706
Change in unrealized losses for Level 3 assets held at September 30, 2020	$	(9)