XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.1
Investments
6 Months Ended
Mar. 31, 2019
Investments [Abstract]  
Investments
Investments
The disclosures below include details of the Company’s investments, excluding those of consolidated investment products. See Note 8 Consolidated Investment Products for information related to the investments held by these entities.
The Company adopted new accounting guidance on October 1, 2018 that requires substantially all equity investments in nonconsolidated entities to be measured at fair value with changes recognized in earnings, except for those accounted for using the equity method of accounting. The new guidance did not change the accounting for investments in non-equity securities.
Investments consisted of the following:
(in millions)
 
March 31,
2019
Equity securities, at fair value
 
 
Sponsored funds
 
$
354.3

Other equity securities
 
68.8

Total equity securities, at fair value
 
423.1

Debt securities
 
 
Trading
 
57.1

Available-for-sale
 
11.0

Total debt securities
 
68.1

Investments in equity method investees
 
982.8

Other investments
 
41.5

Total
 
$
1,515.5

(in millions)
 
September 30,
2018
Investment securities, trading
 
 
Sponsored funds
 
$
248.1

Debt and other equity securities
 
97.6

Total investment securities, trading
 
345.7

Investment securities, available-for-sale
 
 
Sponsored funds
 
178.6

Debt and other equity securities
 
15.5

Total investment securities, available-for-sale
 
194.1

Investments in equity method investees
 
780.8

Other investments
 
105.9

Total
 
$
1,426.5


Equity securities, at fair value include investments that were classified as trading or available-for-sale or carried at cost prior to adoption of the new guidance. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair value of funds is determined based on their published NAV or estimated using NAV as a practical expedient. The fair value of equity securities other than funds is determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs.
Effective October 1, 2018, equity investments that do not have a readily determinable fair value are measured at cost adjusted for observable price changes and impairment, if any, which are recognized in earnings. The impairment assessment for these investments considers qualitative factors, including the financial condition and specific events related to the investee, that may indicate the fair value of the investment is less than its carrying value. 
Investment balances and related changes for the prior year have not been reclassified to conform to the financial statement presentation as of and for the period ended March 31, 2019.
Investment securities with aggregate carrying amounts of $1.2 million were pledged as collateral at both March 31, 2019 and September 30, 2018.
Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows:
(in millions)
 
Cost Basis
 
Gross Unrealized
 
Fair Value
 
Gains
 
Losses
 
as of March 31, 2019
 
 
 
 
 
 
 
 
Debt securities
 
$
13.1

 
$

 
$
(2.1
)
 
$
11.0

 
 
 
 
 
 
 
 
 
as of September 30, 2018
 
 
 
 
 
 
 
 
Sponsored funds
 
$
172.9

 
$
8.3

 
$
(2.6
)
 
$
178.6

Debt and other equity securities
 
16.8

 
0.5

 
(1.8
)
 
15.5

Total
 
$
189.7

 
$
8.8

 
$
(4.4
)
 
$
194.1


Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows:
(in millions)
 
Less Than 12 Months
 
12 Months or Greater
 
Total
Fair Value
 
Gross
Unrealized
Losses
Fair Value
 
Gross
Unrealized
Losses
Fair Value
 
Gross
Unrealized
Losses
 
 
 
as of March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
10.2

 
$
(2.1
)
 
$
0.6

 
$

 
$
10.8

 
$
(2.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
as of September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Sponsored funds
 
$
48.8

 
$
(2.1
)
 
$
21.0

 
$
(0.5
)
 
$
69.8

 
$
(2.6
)
Debt and other equity securities
 
10.9

 
(1.8
)
 

 

 
10.9

 
(1.8
)
Total
 
$
59.7

 
$
(3.9
)
 
$
21.0

 
$
(0.5
)
 
$
80.7

 
$
(4.4
)