Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2017

The assets and liability measured at fair value on a recurring basis were as follows:



(in millions)	Level 1		Level 2		Level 3		Total
as of December 31, 2017	Level 1		Level 2		Level 3		Total
Assets
Investment securities, trading
Sponsored funds	$	17.7	$	—	$	—	$	17.7
Debt and other equity securities	20.0		65.1		196.8		281.9
Investment securities, available-for-sale
Sponsored funds	112.5		—		—		112.5
Debt and other equity securities	0.9		0.6		0.3		1.8
Life settlement contracts	—		—		13.0		13.0
Total Assets Measured at Fair Value	$	151.1	$	65.7	$	210.1	$	426.9

Liability
Contingent consideration liability	$	—	$	—	$	62.0	$	62.0



(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2017	Level 1		Level 2		Level 3		Total
Assets
Investment securities, trading
Sponsored funds	$	31.1	$	—	$	—	$	31.1
Debt and other equity securities	18.2		78.4		186.8		283.4
Investment securities, available-for-sale
Sponsored funds	110.8		—		—		110.8
Debt and other equity securities	1.0		0.6		0.3		1.9
Life settlement contracts	—		—		12.8		12.8
Total Assets Measured at Fair Value	$	161.1	$	79.0	$	199.9	$	440.0

Liability
Contingent consideration liability	$	—	$	—	$	51.0	$	51.0

Changes in the Level 3 assets and liability were as follows:



	2017					2016
(in millions)	Investments		Contingent Consideration Liability			Investments			Contingent Consideration Liability
for the three months ended December 31,	Investments		Contingent Consideration Liability			Investments			Contingent Consideration Liability
Balance at beginning of period	$	199.9	$	(51.0	)	$	205.1		$	(98.1	)
Total realized and unrealized gains (losses)
Included in investment and other income, net	1.2		—			0.6			—
Included in general, administrative and other expense	—		(4.0		)	—			12.2
Purchases	5.3		—			0.5			—
Sales	—		—			(2.4		)	—
Settlements	—		—			(1.7		)	2.2
Foreign exchange revaluation and other	3.7		(7.0		)	(3.4		)	—
Balance at End of Period	$	210.1	$	(62.0	)	$	198.7		$	(83.7	)
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	$	1.2	$	(4.0	)	$	(0.1	)	$	12.2

Valuation techniques and significant unobservable inputs used in the Level 3 fair value measurements were as follows:



(in millions)
as of December 31, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	180.3	Market pricing	Redemption price	$73 per $100 of par
				Discount rate	18.6%
	16.5		Discounted cash flow	Discount rate	4.3%–6.7% (5.8%)
				Risk premium	2.0%–4.7% (3.1%)

Life settlement contracts	13.0		Discounted cash flow	Life expectancy	19–121 months (61)
				Discount rate	8.0%–20.0% (13.2%)

Contingent consideration liability	62.0		Discounted cash flow	AUM growth rate	2.1%
				Discount rate	14.8%



(in millions)
as of September 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	175.7	Market pricing	Redemption price	$73 per $100 of par
				Discount rate	18.6%
	11.1		Discounted cash flow	Discount rate	4.1%–6.7% (5.7%)
				Risk premium	2.0%–4.1% (2.9%)

Life settlement contracts	12.8		Discounted cash flow	Life expectancy	20–123 months (62)
				Discount rate	8.0%–20.0% (13.2%)

Contingent consideration liability	51.0		Discounted cash flow	AUM growth rate	1.3%–9.4% (5.3%)
				Discount rate	14.6%

Financial instruments that were not measured at fair value were as follows: