Fair Value Measurements

6 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 5—Fair Value Measurements

Fair value is defined as the price in a transaction to sell an asset or paid to transfer a liability (i.e. the "exit price") in an orderly transaction between market participants at the measurement date. The Company utilizes a three-level valuation hierarchy for disclosure of fair value measurements in accordance with FASB Accounting Standard Codification Topic 820. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the reported date. The three levels are defined as follows:

• Level 1—unadjusted quoted prices in active markets that are available for identical assets or liabilities as of the reported date.

• Level 2—quoted prices in markets that are not active or other pricing inputs that are either directly or indirectly observable as of the reported date.

• Level 3—prices or valuation techniques that are both significant to the fair value measurement and unobservable as of the reported date. These financial instruments do not have active markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Assets and liabilities measured and reported at fair value are classified and disclosed in one of the above categories based on the nature of the inputs that are significant to the fair value measurement in its entirety. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's classification within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Other Investments

Other investments primarily consist of investments in Company-sponsored investment vehicles, including mutual funds, an investment strategy separate account, and three limited liability companies; and an investment in a non-affiliated investment limited partnership.

The investments in the mutual funds and in the separate account are accounted for as available-for-sale securities and valued under the market approach through the use of unadjusted quoted market prices available in an active market, and are classified within Level 1 of the valuation hierarchy. The fair value of these investments at December 31, 2011 was $2.1 million.

During the three months ended December 31, 2011, the Company closed the Epoch Global All Cap separate account and transferred the assets into a new Company-sponsored investment limited liability company. The Company also invested $4.0 million in two additional new Company-sponsored investment limited liability companies. At December 31, 2011, the Company was the sole investor of these limited liability companies and therefore accounted for these investments as consolidated investment vehicles. The Company also invested $1.0 million in a new Company-sponsored separate account, Epoch Global Champions. This investment is accounted for as available-for-sale.

During the fiscal year ended June 30, 2011, the Company invested $4.0 million in a non-affiliated investment limited partnership. At December 31, 2011, the Company held less than a 2% ownership interest in this limited partnership. This investment is accounted for as available-for-sale and is valued based upon the Company's ownership interest in the partnership's net assets. The value of net assets is based on the underlying assets and liabilities of the limited partnership, which primarily include exchange-listed common stocks and money market funds. This investment seeks to generate capital appreciation. The Company's investment may be redeemed as of the end of the partnership's fiscal year, provided that 30 days prior written notice is given to the general partner. Redemptions may be more frequent at the option of the general partner. There is no lock-up and the Company has no unfunded commitments. The investment limited partnership is classified within Level 2 of the valuation hierarchy. The fair value of this investment at December 31, 2011 was $4.2 million.

The following table presents, for each of the hierarchy levels previously described, the Company's assets that are measured at fair value as of December 31, 2011 and June 30, 2011, respectively (in thousands):

	December 31, 2011								June 30, 2011
	Fair Value Measurements		Level 1		Level 2		Level 3		Fair Value Measurements		Level 1		Level 2		Level 3
Available-for-sale:
Company-sponsored mutual funds	$	1,064	$	1,064	$	—	$	—	$	1,179	$	1,179	$	—	$	—
Epoch Global Champions separate account		1,000		1,000		—		—		—		—		—		—
Investment in limited partnership		4,182		—		4,182		—		4,144		—		4,144		—
Epoch Global All Cap separate account		—		—		—		—		3,061		3,061		—		—
Total available-for-sale securities		6,246		2,064		4,182		—		8,384		4,240		4,144		—
Consolidated investment vehicles:
Epoch Global Equity Shareholder Yield Fund, LLC		1,998		1,998		—		—		—		—		—		—
Epoch Global All-Cap Fund, LLC		2,775		2,775		—		—		—		—		—		—
Epoch Global Choice Fund, LLC		1,998		1,998		—		—		—		—		—		—
Total consolidated funds		6,771		6,771		—		—		—		—		—		—
Total investments measured at fair value	$	13,017	$	8,835	$	4,182	$	—	$	8,384	$	4,240	$	4,144	$	—

There were no transfers into or out of the Level 1, 2 and 3 categories in the fair value measurement hierarchy for the periods presented.

The investment in the Epoch Global Absolute Return Fund, LLC is accounted for under the equity method, whereby the Company records its percentage share of realized and unrealized earnings or losses in the Condensed Consolidated Statements of Income. Consequently, this investment is not recorded at, but approximates, fair value. The total carrying value of this investment was $0.5 million at December 31, 2011 and June 30, 2011.