Related Party Transactions

12 Months Ended

Oct. 31, 2012

Related Party Transactions Disclosure [Abstract]

Related Party Transactions

22. 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 years ended October 31, 2012, 2011 and 2010 are as follows:

(in thousands)		2012		2011		2010
Investment advisory and administrative fees	$	744,351	$	768,430	$	669,017
Distribution fees		80,920		92,770		91,750
Service fees		126,345		144,530		139,741
Shareholder services fees		2,411		2,188		2,255
Total	$	954,027	$	1,007,918	$	902,763

For the years ended October 31, 2012, 2011 and 2010, the Company had investment advisory agreements with certain sponsored funds pursuant to which the Company contractually waived $8.8million, $13.0million and $18.0million, respectively, of investment advisory fees it was otherwise entitled to receive.

Sales proceeds and net realized (losses) gains from investments in sponsored funds classified as available-for-sale for the years ended October 31, 2012, 2011 and 2010 are as follows:

(in thousands)		2012		2011		2010
Proceeds from sales	$	60,726	$	61,866	$	32,586
Net realized (losses) gains		(92)		586		3,048

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 years ended October 31, 2012, 2011 and 2010, expenses of $18.9million, $16.0million and $16.0million, respectively, were incurred by the Company pursuant to these arrangements.

Included in investment advisory and other receivables at October 31, 2012 and 2011 are receivables due from sponsored funds of $84.4million and $82.5million, 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 0.9percent to 5.0percent), 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, which are full recourse in nature, are reflected as notes receivable from stock option exercises in shareholders' equity and amounted to $4.2 million and $4.4million at October 31, 2012 and 2011, respectively.