Investment Securities (Tables)

3 Months Ended

Mar. 31, 2021

Investment Securities

Schedule of investment securities

Investment securities at March 31, 2021 and December 31, 2020 were as follows:

	March 31,		December 31,
	2021		2020
		(in thousands)
Available for sale securities:
Commercial paper	$	—	9,705
Corporate bonds		133,652	157,832
Total available for sale securities		133,652	167,537
Trading debt securities:
Commercial paper		14,079	11,785
Corporate bonds		70,427	76,734
Mortgage-backed securities		—	1
Term loans		48,077	47,224
Total trading securities		132,583	135,744
Equity securities:
Common stock		42,323	41,410
Sponsored funds		82,323	81,019
Sponsored privately offered funds		1,224	1,165
Total equity securities		125,870	123,594
Equity method securities:
Sponsored funds		59,954	59,890
Total securities	$	452,059	486,765

Summary of maturities of securities held

Corporate bonds accounted for as available for sale and held as of March 31, 2021 mature as follows:

		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	74,726	75,746
After one year but within five years		56,513	57,906
	$	131,239	133,652

Commercial paper, corporate bonds and term loans accounted for as trading and held as of March 31, 2021 mature as follows:

		Fair value
		(in thousands)
Within one year	$	38,039
After one year but within five years		68,227
After five years but within 10 years		26,317
	$	132,583

Summary of the gross unrealized gains (losses) related to securities

The following is a summary of the gross unrealized gains related to securities classified as available for sale at March 31, 2021:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Corporate bonds	$	131,239	2,413	—	133,652

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2020:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Commercial paper	$	9,720	—	(15)	9,705
Corporate bonds		154,270	3,562	—	157,832
	$	163,990	3,562	(15)	167,537

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

There are no available for sale investment securities with fair values below carrying values at March 31, 2021.  A summary of available for sale investment securities with fair values below carrying values at December 31, 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)
Corporate bonds	$	2,414	(15)	—	—	2,414	(15)

Schedule of fair value of investment securities

The following tables summarize our investment securities as of March 31, 2021 and December 31, 2020 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs.

March 31, 2021	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	20,062	—	—	—	20,062
Commercial paper		—	25,801	—	—	25,801
Total cash equivalents	$	20,062	25,801	—	—	45,863
Available for sale securities:
Corporate bonds	$	—	133,652	—	—	133,652
Trading debt securities:
Commercial paper		—	14,079	—	—	14,079
Corporate bonds		—	70,427	—		70,427
Term loans		—	46,355	1,722	—	48,077
Equity securities:
Common stock		42,018	—	305	—	42,323
Sponsored funds		82,323	—	—	—	82,323
Sponsored privately offered funds measured at net asset value (2)		—	—	—	1,224	1,224
Equity method securities: (3)
Sponsored funds		59,954	—	—	—	59,954
Total investment securities	$	184,295	264,513	2,027	1,224	452,059

December 31, 2020	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	82,085	—	—	—	82,085
Commercial paper		—	47,421	—	—	47,421
Total cash equivalents	$	82,085	47,421	—	—	129,506
Available for sale securities:
Commercial paper	$	—	9,705	—	—	9,705
Corporate bonds		—	157,832	—	—	157,832
Trading debt securities:
Commercial paper		—	11,785	—	—	11,785
Corporate bonds		—	76,734	—		76,734
Mortgage-backed securities		—	1	—	—	1
Term loans		—	46,030	1,194	—	47,224
Equity securities:
Common stock		41,079	—	331	—	41,410
Sponsored funds		81,019	—	—	—	81,019
Sponsored privately offered funds measured at net asset value (2)		—	—	—	1,165	1,165
Equity method securities: (3)
Sponsored funds		59,890	—	—	—	59,890
Total investment securities	$	181,988	302,087	1,525	1,165	486,765

(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 three months ended March 31, 2021:

	For the three months ended
	March 31, 2021
	(in thousands)
Level 3 assets at December 31, 2020	$	1,525
Transfers into level 3		4,863
Transfers out of level 3		(4,293)
Gains in Investment and other income (loss)		33
Redemptions and paydowns		(101)
Level 3 assets at March 31, 2021	$	2,027
Change in unrealized losses for Level 3 assets held at March 31, 2021	$	(26)