Investments

The Company earns income on cash balances and investments, as well as on premium trust balances that the Company maintains for premiums collected from insureds but not yet remitted to insurance companies, and funds held under the terms of certain outsourcing agreements to pay certain obligations on behalf of clients. Premium trust balances and receivables, as well as a corresponding liability, are included in Fiduciary assets and Fiduciary liabilities in the accompanying Condensed Consolidated Statements of Financial Position.

The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions):



	March 31, 2013		December 31, 2012
Cash and cash equivalents	$	408	$	291
Short-term investments	352		346
Fiduciary assets (1)	4,253		4,029
Investments	152		165
	$	5,165	$	4,831

______________________________________________


(1)	Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables.

The Company’s investments are as follows (in millions):



	March 31, 2013		December 31, 2012
Equity method investments (2)	$	93	$	102
Other investments, at cost	40		43
Fixed-maturity securities	19		20
	$	152	$	165

______________________________________________


(2)	The reduction in equity method investments is primarily due to redemptions.