Other Investments

6 Months Ended

Dec. 31, 2011

Other Investments [Abstract]

Other Investments

Note 4—Other Investments

The Company's other investments at December 31, 2011 and June 30, 2011 are summarized as follows (in thousands):

	December 31, 2011									June 30, 2011
	Cost		Gross Unrealized					Fair Value		Cost		Gross Unrealized					Fair Value
			Gains		Losses							Gains		Losses
Available-for-sale securities:
Company-sponsored mutual funds	$	1,212	$	43	$	(191	)	$	1,064	$	1,185	$	91	$	(97	)	$	1,179
Epoch Global Champions separate account		1,000		—		—			1,000		—		—		—			—
Investment in limited partnership		4,000		182		—			4,182		4,000		144		—			4,144
Epoch Global All Cap separate account		—		—		—			—		2,652		445		(36	)		3,061
Total available-for-sale securities		6,212		225		(191	)		6,246		7,837		680		(133	)		8,384
Consolidated investment vehicles:
Epoch Global Equity Shareholder Yield Fund, LLC		2,000		—		(2	)		1,998		—		—		—			—
Epoch Global All-Cap Fund, LLC		2,501		366		(92	)		2,775		—		—		—			—
Epoch Global Choice Fund, LLC		2,000		—		(2	)		1,998		—		—		—			—
Total consolidated investment vehicles		6,501		366		(96	)		6,771		—		—		—			—
Equity method investment:
Epoch Global Absolute Return Fund, LLC		479		—		—			479		523		—		—			523
Total Other Investments	$	13,192	$	591	$	(287	)	$	13,496	$	8,360	$	680	$	(133	)	$	8,907

During the three months ended December 31, 2011, the Company closed the Epoch Global All Cap separate account and transferred the portfolio into the Epoch Global All-Cap Fund, LLC. Upon transfer, the Company reclassified approximately $0.3 million in unrealized gains from accumulated other comprehensive income to other income.

During the three months ended December 31, 2011, in connection with the launch of several new investment vehicles, the Company invested $4.0 million in two investment limited liability companies. As of December 31, 2011, the Company was the sole investor in these entities. As such, the Company has consolidated the investment activity in these entities within the Company's financial statements. Investment securities held in the portfolios of consolidated investment vehicles are carried at fair value based upon quoted market prices. Net realized and unrealized gains or losses recognized on investments held in the portfolios of consolidated funds are reflected as a component of other income.

The Company also invested $1.0 million in a new separate account, Epoch Global Champions. This investment is accounted for as available-for-sale securities. Unrealized gains or losses from available-for-sale securities are recorded in accumulated other comprehensive income/(loss), net of tax, as a separate component of stockholders' equity until realized.

The unrealized losses in the available-for-sale securities for each period presented have been unrealized for twelve months or more. Management has reviewed its investment securities for other-than-temporary impairment in accordance with its accounting policy outlined in Note 2 of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2011. When evaluating whether an unrealized loss on an available-for-sale investment is other than temporary, management reviews such factors as extent and duration of the loss, reduction or cessation of dividend payments, and overall financial condition of the issuer.

Based on management's assessment, the Company does not believe that the declines are other-than-temporary for all periods presented. The gross unrealized losses from available-for-sale securities were primarily caused by overall weakness in the financial markets and world economy. Management expects the securities will recover their value over time, and management has the intent and ability to hold these investments until such recovery occurs.

Proceeds as well as realized gains and losses recognized from investments classified as available-for-sale during the periods presented are as follows (in thousands):

	For the Three Months Ended December 31,
	2011							2010
	Proceeds		Gross Realized					Proceeds		Gross Realized
			Gains		Losses					Gains		Losses
Epoch Global All Cap separate account	$	261	$	25	$	(49	)	$	592	$	93	$	(11	)
Company-sponsored mutual funds		20		20		—			35		35		—
	$	281	$	45	$	(49	)	$	627	$	128	$	(11	)
	For the Six Months Ended December 31,
	2011							2010
	Proceeds		Gross Realized					Proceeds		Gross Realized
			Gains		Losses					Gains		Losses
Epoch Global All Cap separate account	$	1,634	$	80	$	(254	)	$	1,034	$	130	$	(54	)
Company-sponsored mutual funds		20		20		—			35		35		—
	$	1,654	$	100	$	(254	)	$	1,069	$	165	$	(54	)

Realized gains and losses from available-for-sale securities are included in other income in the Condensed Consolidated Statements of Income using the specific identification method.

Derivatives

On a limited basis, the Company utilizes derivative financial instruments, consisting of foreign exchange spot contracts, to facilitate purchases and to hedge market price risk and currency risk exposure associated with its purchases of foreign securities in its investments in separate accounts and consolidated funds seeded for product development purposes. These derivative financial instruments are closed out within the settlement period of the related security purchase – generally within 3 days. The Company does not use derivative financial instruments for speculative purposes and does not anticipate doing so in the future. The Company's derivative instruments are entered into with a counterparty where a legal right of set-off exists under master netting agreements enforceable by law. Due to the short-term nature of the Company's derivative instruments, the unrealized and realized gains and losses to date have been negligible. The Company's derivative instruments are recorded at their net fair values and are included in other investments on the condensed consolidated balance sheets. The Company elected not to apply hedge accounting to its derivative instruments. Gains and losses on the Company's derivatives not designated as hedging instruments are included in other income/(loss) on the condensed consolidated statements of income.

As of December 31, 2011, the Company had foreign exchange spot contracts outstanding with one counterparty, all of which were settled in January 2012.