CONSOLIDATED SPONSORED INVESTMENT PRODUCTS

The following table presents the balances related to CSIP that are included on the Condensed Consolidated Balance Sheets as well as Invesco's net interests in CSIP for each period presented.



$ in millions	September 30, 2014		December 31, 2013
Investments of CSIP	305.8		93.2
Cash and cash equivalents of CSIP	18.1		12.7
Accounts receivable and other assets of CSIP	10.6		2.6
Assets of CSIP	334.5		108.5
Other liabilities of CSIP	(7.8	)	(4.7	)
Equity attributable to redeemable noncontrolling interests	(157.5	)	—
Equity attributable to nonredeemable noncontrolling interests	(19.2	)	(12.0	)
Invesco's net interests in CSIP	150.0		91.8
Invesco's net economic interests as a percentage of investments of CSIP	49.1	%	98.5	%

The carrying value of investments held by CSIP is also their fair value. The following tables present the fair value hierarchy levels of investments held by CSIP, which are measured at fair value as of September 30, 2014, and December 31, 2013:



	As of September 30, 2014
$ in millions	Fair Value Measurements	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investments:
Fixed income securities	191.8	67.0	124.8	—
Equity securities	30.5	30.5	—	—
Investments in fixed income funds*	56.3	56.3	—	—
Investments in other private equity funds*	27.2	—	—	27.2
Total investments at fair value	305.8	153.8	124.8	27.2



	As of December 31, 2013
$ in millions	Fair Value Measurements	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level2)	Significant Unobservable Inputs (Level 3)
Investments:
Fixed income securities	43.2	—	43.2	—
Equity securities	27.8	27.8	—	—
Investments in fixed income funds*	6.0	6.0	—	—
Investments in other private equity funds*	16.2	—	—	16.2
Total investments at fair value	93.2	33.8	43.2	16.2

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*	Investments in fixed income funds and other private equity funds are valued using the net asset value (NAV) as a practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date. Refer to Note 13, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds.

The tables below summarizes as of September 30, 2014 and December 31, 2013, the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized:

As of September 30, 2014

Fair Value

($ in millions)

Total Unfunded Commitments ($ in millions)

Weighted Average Remaining Term ⁽¹⁾

Redemption Frequency

Redemption Notice Period

Fixed income funds

56.3

—

n/a

Monthly

10 days

Private equity fund of funds

27.2

29.0

7.3 years

n/a ⁽²⁾

n/a⁽²⁾

As of December 31, 2013

Fair Value

($ in millions)

Total Unfunded Commitments ($ in millions)

Weighted Average Remaining Term ⁽¹⁾

Redemption Frequency

Redemption Notice Period

Fixed income funds

6.0

—

n/a

Monthly

10 days

Private equity fund of funds

16.2

35.6

8.5 years

n/a ⁽²⁾

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(1) These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.

(2) These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.

Equity securities are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2.

Fixed income securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3.

The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:



	Three months ended September 30,			Nine months ended September 30,
$ in millions	2014		2013	2014		2013
Beginning balance	24.1		—	16.2		—
Consolidation of CSIP	—		13.2	—		13.2
Purchases	3.0		—	7.0		—
Sales	(0.2	)	—	(0.5	)	—
Gains and losses included in the Condensed Consolidated Statements of Income*	0.3		—	4.5		—
Ending balance	27.2		13.2	27.2		13.2

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*	Included in other income/(loss) of CSIP, net, in the Consolidated Statement of Income for the three and nine months ended September 30, 2014 are $0.3 million and $4.5 million in net unrealized gains attributable to investments still held at September 30, 2014 (three and nine months ended September 30, 2013: none).