Consolidated Sponsored Investment Products (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balances of Consolidated Sponsored Investment Products

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014:

	As of
	September 30, 2015			December 31, 2014
($ in thousands)
Total cash and cash equivalents	$	16,732		$	8,687
Total investments	311,429			236,652
All other assets	10,494			6,960
Total liabilities	(29,849		)	(12,556		)
Redeemable noncontrolling interests	(49,895		)	(23,071		)
The Company’s net interests in consolidated sponsored investment products	$	258,911		$	216,672
The Company's net interest as a percentage of total investments of consolidated sponsored investment products	83.1		%	91.6		%

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation

The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.

	Nine Months Ended September 30,
($ in thousands)	2015			2014
Level 3 Debt securities (a)
Balance at beginning of period	$	1,065		$	—
Purchases	135			450
Paydowns	(14		)	(2		)
Sales	(13		)	—
Transferred to Level 2	(126		)	—
Change in unrealized gain/(loss), net	(121		)	(1		)
Balance at end of period	$	926		$	447

(a) None of the securities reflected in the above table were internally fair valued at September 30, 2015.

Derivative Instruments

The Company's consolidated sponsored investment products were party to the following derivative instruments for the period ended September 30, 2015:

($ in thousands)
	Volume
Purchased options	$	3,527	(a)
Written options	2,499		(b)
Futures contracts long/short	109,286		(c)
Forward foreign currency exchange purchase contracts	2,294		(d)
Forward foreign currency exchange sale contracts	26,565		(e)
Interest rate swaps	31,603		(a)
Other swaps	27,956		(f)

(a)    Represents cost of holdings as of the end of the period.

(b)    Represents aggregate premiums received for the period.

(c)    Represents cost at trade date for holdings as of the end of the period.

(d)    Represents value of trade date payable for holdings as of the end of the period.

(e)    Represents value at settlement date receivable for holdings as of the end of the period.

(f) Includes credit default, total return, inflation and variance swaps. Represents notional value of holdings as of the end of the period.

Derivatives, Offsetting Assets

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

Derivatives, Offsetting Liabilities

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

Derivatives, Net Gains (Losses)

The following is a summary of the net gains (losses) recognized in income by primary risk exposure, for the three and nine months ended September 30, 2015:

($ in thousands)	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Interest rate contracts	$	(217	)	$	(75	)
Foreign currency exchange contracts	263			666
Equity contracts	633			1,414
Commodity contracts	212			126
Credit contracts	(13		)	(100		)
Total	$	878		$	2,031