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Investments
 12 Months Ended
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]  
Investments
(7) Investments
Investments on the Consolidated Balance Sheets as of December 31, 2011 and 2010 included available-for-sale and trading securities. At December 31, 2011 and 2010, Federated held investments totaling $159.5 million and $105.7 million, respectively, in fluctuating-value Federated-sponsored mutual funds that were classified as available-for-sale securities and were included in Investments- affiliates on the Consolidated Balance Sheets. Federated’s trading securities totaled $113.5 million and $29.2 million at December 31, 2011 and 2010, respectively, and were included in Investments - other on the Consolidated Balance Sheets. Federated consolidates certain investment companies into its Consolidated Financial Statements as a result of Federated’s controlling financial interest in the products (see Note (5)). All investments held by these investment companies, which primarily represented Federated-sponsored investment companies, were included in Federated’s Consolidated Balance Sheets as of December 31, 2011 and 2010 as trading securities.
Federated’s trading securities as of December 31, 2011 were primarily comprised of high quality short-term debt securities held by a consolidated, non-US dollar-denominated sponsored money market fund ($77.1 million), as well as shares of an offshore master fund invested in global project and trade finance transactions ($17.9 million) and stocks of large-cap U.S. and international companies ($10.9 million) held by various other consolidated investment companies.
 
Available-for-sale securities (see Note (1)(g)) consisted of the following at December 31:
 
 
2011
 
2010
 
 
 
 
Gross Unrealized
 
Estimated
Market
Value
 
 
 
Gross Unrealized
 
Estimated
Market
Value
in thousands
 
Cost
 
Gains
 
(Losses)
 
Cost
 
Gains
 
(Losses)
 
Equity mutual funds
 
$
43,217

 
$
2,037

 
$
(925
)
 
$
44,329

 
$
41,879

 
$
5,200

 
$
(24
)
 
$
47,055

Fixed-income mutual funds
 
115,699

 
461

 
(950
)
 
115,210

 
58,143

 
662

 
(136
)
 
58,669

Total fluctuating-value mutual funds
 
$
158,916

 
$
2,498

 
$
(1,875
)
 
$
159,539

 
$
100,022

 
$
5,862

 
$
(160
)
 
$
105,724



The increase in available-for-sale securities at December 31, 2011 as compared to December 31, 2010, was primarily due to Federated investing $60.0 million of available cash in certain Federated-sponsored fixed-income mutual funds during 2011. As of December 31, 2011, unrealized gains of $2.5 million related to equity and fixed-income investments with a fair value of $48.4 million. As of December 31, 2011, unrealized losses of $1.9 million related to fixed-income and equity investments with a fair value of $111.1 million, all of which were outstanding for less than twelve months.
Gains and losses recognized in Gain on securities, net on the Consolidated Statements of Income in connection with investments consisted of the following for the years ended December 31:
in thousands
 
2011

 
2010

 
2009

Unrealized (loss) gain
 
 
 
 
 
 
Trading securities
 
$
(871
)
 
$
541

 
$
2,824

Derivatives1
 
(560
)
 
190

 
(18
)
Realized gains2
 
 
 
 
 
 
Available-for-sale securities
 
3,006

 
1,239

 
118

Trading securities
 
931

 
2,045

 
810

Derivatives1
 
570

 
720

 
328

Purchased loans
 
0

 
678

 
0

Realized losses2
 
 
 
 
 
 
Available-for-sale securities
 
0

 
(6
)
 
0

Trading securities
 
(830
)
 
(958
)
 
(1,405
)
Derivatives1
 
(814
)
 
(907
)
 
0

Impairments
 
0

 
0

 
(386
)
Gain on securities, net3
 
$
1,432

 
$
3,542

 
$
2,271

1
These items relate to the settlement of economic derivatives held either by certain consolidated sponsored products or Federated.
2
Realized gains and losses are computed on a specific-identification basis.
3
Amounts related to consolidated investment companies totaled $(1.2) million, $1.5 million and $2.3 million for 2011, 2010 and 2009, respectively.