Investments

9 Months Ended

Jul. 31, 2012

Investments Disclosure [Abstract]

Investments

6. Investments

The following is a summary of the carrying value of investments at July 31, 2012 and October 31, 2011:

(in thousands)		July 31, 2012		October 31, 2011
Investment securities, trading:
Corporate debt securities		$	-	$	4,832
Consolidated sponsored funds			169,925		143,517
Separately managed accounts			36,301		44,860
Total investment securities, trading			206,226		193,209
Investment securities, available-for-sale			34,156		39,841
Investment in non-consolidated CLO entity			349		278
Investments in equity method investees			37,748		46,900
Investments, other			7,507		7,507
Total investments(1)		$	285,986	$	287,735
(1)	Excludes the Company's investment in its consolidated CLO entity, which is discussed in Note ##VIE.

Investment securities, trading

Investment securities, trading, consist of corporate debt securities held directly by the Company and debt and equity securities held in the portfolios of consolidated sponsored funds and separately managed accounts. The following is a summary of the fair value of investments classified as trading at July 31, 2012 and October 31, 2011:

(in thousands)	July 31, 2012		October 31, 2011
Debt securities	$	65,515	$	85,222
Equity securities		140,711		107,987
Total investment securities, trading	$	206,226	$	193,209

The Company recognizedtrading (losses) and gains related to trading securities still held at the reporting date of $(1.0)million and $(3.0)million for the three months ended July 31, 2012 and 2011, respectively, and $5.8 million and $6.5millionfor the nine months ended July 31, 2012 and 2011, respectively.

Investment securities, available-for-sale

Investment securities, available-for-sale, consist exclusively of seed investments in certain Company-sponsored funds. The following is a summary of thegross unrealized gains and (losses) included in accumulated other comprehensive income related to securities classified as available-for-sale at July 31, 2012 and October 31, 2011:

July 31, 2012				Gross Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Sponsored funds	$	26,224	$	8,073	$	(141)	$	34,156
October 31, 2011				Gross Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Sponsored funds	$	34,368	$	5,518	$	(45)	$	39,841

Net unrealized holding(losses)and gains on investment securities, available-for-sale, included in other comprehensive income were $(0.3) million and $(1.6)million for the three months endedJuly 31, 2012 and 2011, respectively, and$2.5 millionand $2.6million for thenine months ended July 31 2012 and 2011, respectively.

The Company reviewed gross unrealized losses of $0.1million as of July 31, 2012 and determined that these losses were not other-than-temporary, primarily because the Company has both the ability and intent to hold the investments for a period of time sufficient to recover such losses. The aggregate fair value of investments with unrealized losses was $2.7million at July 31, 2012. No investment with a gross unrealized loss has been in a loss position for greater than one year.

The following is a summary of the Company's realized gains and losses upon disposition of sponsored funds classified as available-for-sale for the three and nine months endedJuly 31, 2012 and 2011:

	Three Months Ended				Nine Months Ended
	July 31,				July 31,
(in thousands)	2012		2011		2012		2011
Gains	$	41	$	232	$	288	$	2,338
Losses		(230)		(379)		(353)		(1,933)
Net realized (losses) gains	$	(189)	$	(147)	$	(65)	$	405

Investments in equity method investees

The Company has a 7 percent equity interest in a private equity partnership managed by a third party that invests in companies in the financial services industry. The Company's investment in the partnership was $9.5million and $18.4 million at July 31, 2012 and October 31, 2011, respectively.

In addition, the Company had equity interests in the following sponsored funds as of July 31, 2012 and October 31, 2011:

		Equity Ownership Interest (%)		Fair Value ($)(1)
		July 31,	October 31,		July 31,		October 31,
(dollar amounts in thousands)		2012	2011		2012		2011
Eaton Vance Tax-Advantaged Bond
Strategies Long Term Fund		42%	-	$	12,227	$	-
AGF Floating Rate Income Fund		36%	-		15,013		-
Eaton Vance Parametric Structured
Currency Fund		34%	-		1,019		-
Eaton Vance Parametric Structured
Commodity Strategy Fund		-	47%		-		9,190
Eaton Vance Parametric Option
Absolute Return Strategy Fund		-	27%		-		19,298
(1)	Equity method investments in sponsored funds are measured at fair value based on the funds’ net asset values. The
	Company has the ability to redeem its investments in these funds at any time.

The Company did not recognize any impairment losses related to its investments in affiliates during the three and nine months ended July 31, 2012 and 2011, respectively.