Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investment Securities

Schedule of investment securities

Investment securities at March 31, 2020 and December 31, 2019 were as follows:

	March 31,		December 31,
	2020		2019
		(in thousands)
Available for sale securities:
Commercial paper	$	—	1,977
Corporate bonds		222,478	254,291
Total available for sale securities		222,478	256,268
Trading debt securities:
Commercial paper		9,573	1,977
Corporate bonds		77,325	84,920
U.S. Treasury bills		6,022	5,979
Mortgage-backed securities		3	4
Term loans		37,220	44,268
Consolidated sponsored funds		42,241	43,567
Total trading securities		172,384	180,715
Equity securities:
Common stock		30,528	34,945
Sponsored funds		148,683	178,386
Sponsored privately offered funds		668	845
Total equity securities		179,879	214,176
Equity method securities:
Sponsored funds		31,039	37,187
Total securities	$	605,780	688,346

Summary of maturities of securities held

Corporate bonds accounted for as available for sale and held as of March 31, 2020 mature as follows:

		Amortized
		cost	Fair value
		(in thousands)
Within one year	$	63,347	63,292
After one year but within five years		159,011	159,186
	$	222,358	222,478

Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of March 31, 2020 mature as follows:

		Fair value
		(in thousands)
Within one year	$	35,102
After one year but within five years		70,350
After five years but within 10 years		24,691
	$	130,143

Summary of the gross unrealized gains (losses) related to securities

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at March 31, 2020:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Corporate bonds	$	222,358	1,505	(1,385)	222,478

The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2019:

	Amortized		Unrealized	Unrealized
	cost		gains	losses	Fair value
	(in thousands)
Available for sale securities:
Commercial paper	$	1,976	1	—	1,977
Corporate bonds		250,982	3,314	(5)	254,291
	$	252,958	3,315	(5)	256,268

Summary of available for sale sponsored funds with fair values below carrying values

A summary of available for sale investment securities with fair values below carrying values at March 31, 2020 is as follows:

	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Corporate bonds	$	93,046	(1,385)	—	—	93,046	(1,385)

A summary of available for sale investment securities with fair values below carrying values at December 31, 2019 is as follows:

	Less than 12 months			12 months or longer		Total
			Unrealized		Unrealized		Unrealized
	Fair value		losses	Fair value	losses	Fair value	losses
	(in thousands)
Corporate bonds	$	4,538	—	8,056	(5)	12,594	(5)

Summary of balances related to consolidated sponsored funds as well the company's net interest in these funds

The following table details the balances related to consolidated sponsored funds at March 31, 2020 and December 31, 2019, as well as the Company’s net interest in these funds:

	March 31,		December 31,
	2020		2019
	(in thousands)
Cash	$	765	1,530
Investments		42,241	43,567
Other assets		1,107	483
Other liabilities		(793)	—
Redeemable noncontrolling interests		(19,070)	(19,205)
Net interest in consolidated sponsored funds	$	24,250	26,375

Schedule of fair value of investment securities

The following tables summarize our investment securities as of March 31, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs.

March 31, 2020	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	7,759	—	—	—	7,759
Commercial paper		—	19,159	—	—	19,159
Total cash equivalents	$	7,759	19,159	—	—	26,918
Available for sale securities:
Corporate bonds	$	—	222,478	—	—	222,478
Trading debt securities:
Commercial paper		—	9,573	—	—	9,573
Corporate bonds		—	77,325	—		77,325
U.S. Treasury bills		—	6,022	—	—	6,022
Mortgage-backed securities		—	3	—	—	3
Term loans		—	29,090	8,130	—	37,220
Consolidated sponsored funds		—	42,241	—	—	42,241
Equity securities:
Common stock		30,528	—	—	—	30,528
Sponsored funds		148,683	—	—	—	148,683
Sponsored privately offered funds measured at net asset value (2)		—	—	—	668	668
Equity method securities: (3)
Sponsored funds		31,039	—	—	—	31,039
Total investment securities	$	210,250	386,732	8,130	668	605,780

December 31, 2019	Level 1		Level 2	Level 3	Other Assets Held at Net Asset Value	Total
	(in thousands)
Cash equivalents: (1)
Money market funds	$	4,203	—	—	—	4,203
Commercial paper		—	38,143	—	—	38,143
Total cash equivalents	$	4,203	38,143	—	—	42,346
Available for sale securities:
Commercial paper	$	—	1,977	—	—	1,977
Corporate bonds		—	254,291	—	—	254,291
Trading debt securities:
Commercial paper		—	1,977	—	—	1,977
Corporate bonds		—	84,920	—		84,920
U.S. Treasury bills		—	5,979	—	—	5,979
Mortgage-backed securities		—	4	—	—	4
Term Loans		—	40,368	3,900	—	44,268
Consolidated sponsored funds		—	43,567	—	—	43,567
Equity securities:
Common stock		34,942	—	3	—	34,945
Sponsored funds		178,386	—	—	—	178,386
Sponsored privately offered funds measured at net asset value (2)		—	—	—	845	845
Equity method securities: (3)
Sponsored funds		37,187	—	—	—	37,187
Total investment securities	$	250,515	433,083	3,903	845	688,346

(1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at net asset value and are classified as Level 1. Cash investments in commercial paper are measured at cost, which approximates fair value because of the short time between purchase of the instrument and its expected realization and are classified as Level 2.

(2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.  The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.

(3) The Company’s equity method investments are investment companies that record their underlying investments at fair value.

Schedule of activity of investments categorized as Level 3

The following table summarizes the activity of investments categorized as Level 3 for the three months ended March 31, 2020:

	For the three months ended
	March 31, 2020
	(in thousands)
Level 3 assets at December 31, 2019	$	3,903
Additions		6,020
Transfers in to level 3		7,371
Transfers out of level 3		(5,630)
Losses in Investment and other income		(932)
Redemptions/Paydowns		(2,602)
Level 3 assets at March 31, 2020	$	8,130
Change in unrealized losses for Level 3 assets held at March 31, 2020	$	(158)