Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Summary of investment securities

Our investment securities as of December 31, 2020 and 2019, are summarized as follows (in millions):

	December 31,		December 31,
	2020		2019
Seeded investment products:
Consolidated VIEs	$	214.6	$	924.8
Consolidated VREs		29.3		29.9
Unconsolidated VIEs and VREs		73.2		31.4
Separate accounts		63.5		60.8
Pooled investment funds		0.1		0.1
Total seeded investment products		380.7		1,047.0
Investments related to deferred compensation plans		96.5		125.9
Other investments		5.5		5.4
Total investment securities	$	482.7	$	1,178.3

Schedule of net unrealized gains on trading securities

Net unrealized gains (losses) on investment securities held by us as of December 31, 2020, 2019 and 2018, are summarized as follows (in millions):

	Year ended
	December 31,
	2020		2019		2018
Unrealized gains (losses) on investment securities held at period end	$	69.8	$	19.2	$	(40.6)

Schedule of net foreign currency translation gains (losses) on hedged seed investments denominated in foreign currencies and net gains (losses) associated with foreign currency forward contracts under net investment hedging

We recognized the following foreign currency translation gains (losses) on hedged seed investments denominated in currencies other than our functional currency and gains (losses) associated with foreign currency forward contracts under net investment hedge accounting for the years ended December 31, 2020, 2019 and 2018 (in millions):

	Year ended December 31,
	2020		2019		2018
Foreign currency translation	$	3.7	$	(1.1)	$	(6.8)
Foreign currency forward contracts		(3.7)		1.1		6.8
Total	$	—	$	—	$	—

Schedule of investment gains (losses), net in Consolidated Statements of Comprehensive Income

Investment gains (losses), net on our Consolidated Statements of Comprehensive Income included the following for the years ended December 31, 2020, 2019 and 2018 (in millions):

	Year ended December 31,
	2020		2019		2018
Seeded investment products and hedges, net	$	26.6	$	3.5	$	(17.3)
Third-party ownership interests in seeded investment products		20.1		17.2		(25.3)
Long Tail Alpha equity method investment		6.0		1.5		2.0
Deferred equity plan		2.1		9.5		(0.1)
Other		2.7		2.5		(0.2)
Investment gains (losses), net	$	57.5	$	34.2	$	(40.9)

Cash flows related to investment securities

Cash flows related to our investment securities for the years ended December 31, 2020, 2019 and 2018, are summarized as follows (in millions):

	Year ended December 31,
	2020				2019				2018
			Sales,				Sales,				Sales,
	Purchases		settlements		Purchases		settlements		Purchases		settlements
	and		and		and		and		and		and
	settlements		maturities		settlements		maturities		settlements		maturities
Investment securities by consolidated seeded investment products	$	(103.9)	$	83.7	$	(903.3)	$	582.5	$	(596.4)	$	632.9
Investment securities		(120.4)		255.2		(192.5)		194.0		(29.9)		64.2

Not Designated as Hedging Instrument

Schedule of derivative instruments

We were a party to the following derivative instruments as of December 31, 2020 and 2019 (in millions):

	Notional value
	December 31, 2020		December 31, 2019
Futures	$	164.5	$	222.9
Credit default swaps		166.2		143.0
Total return swaps		35.6		46.3
Foreign currency forward contracts		205.0		327.8

Seeded investment products

Schedule of derivative instruments

Our consolidated seeded investment products were party to the following derivative instruments as of December 31, 2020 and 2019 (in millions):

	Notional Value
	December 31, 2020		December 31, 2019
Futures	$	57.0	$	88.3
Contracts for differences		—		15.5
Credit default swaps		1.5		0.1
Total return swaps		—		0.1
Interest rate swaps		75.0		19.4
Options		0.5		1.0
Foreign currency forward contracts		56.1		167.5