Note 4—Other Investments

The Company's other investments at March 31, 2012 and June 30, 2011 are summarized as follows (in thousands):


	March 31, 2012									June 30, 2011
			Gross Unrealized					Fair				Gross Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value

Available-for-sale securities:
Company-sponsored mutual funds	$	1,212	$	90	$	(124	)	$	1,178	$	1,185	$	91	$	(97	)	$	1,179
Epoch Global Champions separate account		996		144		(1	)		1,139		—		—		—			—
Investment in limited partnership		4,000		255		—			4,255		4,000		144		—			4,144
Epoch Global All Cap separate account		—		—		—			—		2,652		445		(36	)		3,061

Total available-for-sale securities		6,208		489		(125	)		6,572		7,837		680		(133	)		8,384


Consolidated investment vehicles:
Epoch Global All-Cap Fund, LLC		2,590		506		(28	)		3,068		—		—		—			—
Epoch Global Choice Fund, LLC		2,005		240		(8	)		2,237		—		—		—			—

Total consolidated investment vehicles		4,595		746		(36	)		5,305		—		—		—			—


Equity method investments:
Epoch Global Equity Shareholder Yield Fund, LLC		2,108		—		—			2,108		—		—		—			—
Epoch Global Absolute Return Fund, LLC		531		—		—			531		523		—		—			523

Total equity method investments		2,639		—		—			2,639		523		—		—			523


Total Other Investments	$	13,442	$	1,235	$	(161	)	$	14,516	$	8,360	$	680	$	(133	)	$	8,907

In December 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. As of March 31, 2012, the Company was the sole investor in this entity. As such, the Company has consolidated the investment activity in this entity within the Company's financial statements. 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.

In December 2011, in connection with the launch of several new investment vehicles, the Company invested $4.0 million in two investment limited liability companies—the Epoch Global Choice Fund, LLC and the Epoch Global Equity Shareholder Yield Fund, LLC. As of March 31, 2012, the Company was the sole investor in the Epoch Global Choice Fund, LLC. As such, the Company accounts for this investment in the same manner as the investment in the Epoch Global All-Cap Fund, LLC discussed above. As of March 31, 2012, the Company was less than a 50% investor in the Epoch Global Equity Shareholder Yield Fund, LLC. As such, the Company accounts for this investment under the equity method, whereby the Company records its share of earnings or losses in other income.

In December 2011, 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.

The unrealized losses in the Company-sponsored mutual funds 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 March 31,
	2012							2011
			Gross Realized							Gross Realized
	Proceeds		Gains		Losses			Proceeds		Gains		Losses
Epoch Global Champions separate account	$	49	$	1	$	(11	)	$	—	$	—	$	—
Epoch Global All Cap separate account		—		—		—			700		103		(17	)

	$	49	$	1	$	(11	)	$	700	$	103	$	(17	)


	For the Nine Months Ended March 31,
	2012							2011
			Gross Realized							Gross Realized
	Proceeds		Gains		Losses			Proceeds		Gains		Losses

Epoch Global Champions separate account	$	49	$	1	$	(11	)	$	—	$	—	$	—
Epoch Global All Cap separate account		1,634		80		(254	)		1,734		234		(71	)
Company-sponsored mutual funds*		20		20		—			35		35		—

	$	1,703	$	101	$	(265	)	$	1,769	$	269	$	(71	)

*	Proceeds from Company-sponsored mutual funds represent capital gain distributions.

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 three 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 counterparties 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 not been material. 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 these derivatives are included in other income/(loss) on the Condensed Consolidated Statements of Income.