Consolidated Sponsored Investment Products (Tables)
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9 Months Ended |
Sep. 30, 2015 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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| 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 | % |
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| 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 |
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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 |
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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 |
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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 |
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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 |
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| 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 |
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| | (a) | None of the securities reflected in the above table were internally fair valued at September 30, 2015. |
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| 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. |
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| 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 |
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| 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 |
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| 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 |
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