Related Party Transactions

3 Months Ended

Jan. 31, 2013

Related Party Transactions Disclosure [Abstract]

Related Party Transactions

19. 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 months ended January 31, 2013 and 2012are as follows:

		Three Months Ended
		January 31,
(in thousands)		2013		2012
Investment advisory and administrative fees	$	192,192	$	183,484
Distribution fees		20,073		20,477
Service fees		31,130		32,299
Shareholder services fees		540		597
Other revenue		135		-
Total	$	244,070	$	236,857

For the three months ended January 31, 2013 and 2012, the Company had investment advisory agreements with certain sponsored funds pursuant to which the Company contractually waived $2.8 million and $2.4 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 three months ended January 31, 2013 and 2012 are as follows:

		Three Months Ended
		January 31,
(in thousands)		2013		2012
Proceeds from sales	$	20,816	$	7,202
Net realized gains		4,909		63

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 January 31, 2013 and 2012, expenses of $5.1 millionand $4.4 million, respectively, were incurred by the Company pursuant to these arrangements.

Included in investment advisory and other receivables at January 31, 2013 and October 31, 2012 are receivables due from sponsored funds of $86.2 million and $84.4 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 0.9 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, which are full recourse in nature, are reflected as notes receivable from stock option exercises in shareholders' equity and amounted to$7.7 million and $4.2million at January 31, 2013 and October 31, 2012, respectively.