CONSOLIDATED SPONSORED INVESTMENT PRODUCTS
The following table presents the balances related to CSIP that are included on the Consolidated Balance Sheets as well as Invesco's net interests in CSIP for each period presented.
|
| | | | | |
$ in millions | December 31, 2015 | | December 31, 2014 |
Investments of CSIP | 290.3 |
| | 288.5 |
|
Cash and cash equivalents of CSIP | 21.9 |
| | 11.4 |
|
Accounts receivable and other assets of CSIP | 6.9 |
| | 5.9 |
|
Assets of CSIP | 319.1 |
| | 305.8 |
|
Other liabilities of CSIP | (4.4 | ) | | (7.9 | ) |
Equity attributable to redeemable noncontrolling interests | (167.3 | ) | | (165.5 | ) |
Equity attributable to nonredeemable noncontrolling interests | (40.8 | ) | | (10.6 | ) |
Invesco's net interests in CSIP | 106.6 |
| | 121.8 |
|
Invesco's net interests as a percentage of investments of CSIP | 36.7 | % | | 42.2 | % |
The carrying value of investments held by CSIP is also their fair value. The following table presents the fair value hierarchy levels of investments held by CSIP, which are measured at fair value as of December 31, 2015 and December 31, 2014:
|
| | | | | | | | | | | |
| As of December 31, 2015 |
$ in millions | Fair Value Measurements | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Other Unobservable Inputs (Level 3) |
Investments: | | | | | | | |
Fixed income securities | 204.2 |
| | — |
| | 204.2 |
| | — |
|
Equity securities | 0.7 |
| | 0.7 |
| | — |
| | — |
|
Investments in fixed income funds* | 35.0 |
| | 35.0 |
| | — |
| | — |
|
Investments in other private equity funds* | 50.4 |
| | — |
| | — |
| | 50.4 |
|
Total investments at fair value | 290.3 |
| | 35.7 |
| | 204.2 |
| | 50.4 |
|
|
| | | | | | | | | | | |
| As of December 31, 2014 |
$ in millions | Fair Value Measurements | | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | | Significant Other
Observable Inputs
(Level 2) | | Significant
Other
Unobservable
Inputs
(Level 3) |
Investments: | | | | | | | |
Fixed income securities | 200.3 |
| | — |
| | 200.3 |
| | — |
|
Investments in fixed income funds* | 58.0 |
| | 58.0 |
| | — |
| | — |
|
Investments in other private equity funds* | 30.2 |
| | — |
| | — |
| | 30.2 |
|
Total investments at fair value | 288.5 |
| | 58.0 |
| | 200.3 |
| | 30.2 |
|
| |
* | 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 20, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds. |
The tables below summarize as of December 31, 2015 and December 31, 2014, 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 December 31, 2015 |
| | Fair Value ($ in millions) | | Total Unfunded Commitments ($ in millions) | | Weighted Average Remaining Term (1) | | Redemption Frequency | | Redemption Notice Period |
Fixed income funds | | 35.0 | | — |
| | n/a | | Monthly | | 10 days |
Private equity fund of funds | | 50.4 | | 33.2 | | 7.9 years | | n/a (2) | | n/a (2) |
|
| | | | | | | | | | | |
| | As of December 31, 2014 |
| | Fair Value ($ in millions) | | Total Unfunded Commitments ($ in millions) | | Weighted Average Remaining Term (1) | | Redemption Frequency | | Redemption Notice Period |
Fixed income funds | | 58.0 | | — |
| | n/a | | Monthly | | 10 days |
Private equity fund of funds | | 30.2 | | 35.0 | | 7.6 years | | n/a (2) | | n/a (2) |
(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 table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:
|
| | | | | |
| Year ended December 31, |
$ in millions | 2015 | | 2014 |
Beginning balance | 30.2 |
| | 16.2 |
|
Purchases | 10.8 |
| | 9.0 |
|
Sales | (2.8 | ) | | (1.0 | ) |
Gains and losses included in the Consolidated Statements of Income* | 12.2 |
| | 6.0 |
|
Ending balance | 50.4 |
| | 30.2 |
|
| |
* | Included in other income/(expense) of CSIP, net, in the Consolidated Statement of Income for the year ended December 31, 2015 are $12.2 million in net unrealized gains attributable to investments still held at December 31, 2015 (year ended December 31, 2014: $6.0 million in net unrealized gains attributable to investments still held at December 31, 2014). |