Related Party Transactions

6 Months Ended

Apr. 30, 2012

Related Party Transactions Disclosure [Abstract]

Related Party Transactions

18. Related Party Transactions

Sponsored funds

The Company is an investment advisor to, and has administrative agreements with, sponsored open-end and closed-end funds for which certain employees are officers and/or directors. Substantially all of the services to these entities for which the Company earns a fee, including investment advisory, distribution, shareholder and administrative, are provided under contracts that set forth the services to be provided and the fees to be charged. These contracts are subject to annual review and approval by the funds' boards of directors or trustees. Revenue for services provided or related to these funds for the three and six months endedApril 30, 2012 and 2011are as follows:

		Three Months Ended				Six Months Ended
		April 30,				April 30,
(in thousands)		2012		2011		2012		2011
Investment advisory and administrative fees	$	188,669	$	194,214	$	372,153	$	381,171
Distribution fees		20,298		23,502		40,775		47,925
Service fees		32,065		36,478		64,364		73,823
Shareholder services fees		630		667		1,227		1,185
Total	$	241,662	$	254,861	$	478,519	$	504,104

For the three months ended April 30, 2012 and 2011, the Company had investment advisory agreements with certain sponsored funds pursuant to which the Company contractually waived $2.1 million and $3.3 million, respectively. For the six months ended April 30, 2012 and 2011, the Company waived $4.5 million and $7.8 million,respectively, of investment advisory fees it was otherwise entitled to receive.

Sales proceeds and net realized gains from investments in sponsored funds classified as available-for-sale for the six months ended April 30, 2012 and 2011 are as follows:

		Three Months Ended				Six Months Ended
		April 30,				April 30,
(in thousands)		2012		2011		2012		2011
Proceeds from sales	$	32,804	$	1,178	$	40,006	$	29,449
Net realized gains		61		85		124		552

The Company bears the non-advisory expenses of certain sponsored funds for which it earns an all-in management fee and provides subsidies to startup and other smaller sponsored funds to enhance their competitiveness. For the three months ended April 30, 2012 and 2011,expenses of $4.3 million and $3.4 million, respectively, were incurred by the Company pursuant to these arrangements. For thesix months ended April 30, 2012 and 2011, expenses of $8.7 million and $6.6 million, respectively, were incurred by the Company pursuant to these arrangements.

Included in investment advisory fees and other receivables at April 30, 2012 and October 31, 2011 are receivables due from sponsored funds of $83.9 million and $82.5 million, respectively.

Employee Loan Program

The Company has established an Employee Loan Program under which a program maximum of $10.0 million is available for loans to officers (other than executive officers) and other key employees of the Company for purposes of financing the exercise of employee stock options. Loans are written for a seven-year period, at varying fixed interest rates (currently ranging from 1.2 percent to 5.0 percent), are payable in annual installments commencing with the third year in which the loan is outstanding, and are collateralized by the stock issued upon exercise of the option. Loans outstanding under this program, are reflected as notes receivable from stock option exercises in shareholders' equity and totaled $4.2 million and $4.4million at April 30, 2012 and October 31, 2011, respectively.