Investments



Investments consist of:
	September 30, 2015		December 31, 2014
	(in thousands)

Available-for-sale (primarily seed capital)	$	325	$	6,172
Trading:
Long-term incentive compensation-related	57,623		74,095
U.S. Treasury Bills	25,030		28,982
Seed capital	398,656		400,746
Equities	57,458		79,720
Exchange-traded options	11,178		22,290
Investments in limited partnership hedge funds:
Long-term incentive compensation-related	18,403		24,684
Seed capital	25,085		33,951
Consolidated private equity fund (10% seed capital)	24,602		32,604
Private equity (seed capital)	49,503		48,734
Other	12,777		11,497
Total investments	$	680,640	$	763,475

Total investments related to long-term incentive compensation obligations of $76.0 million and $98.8 million as of September 30, 2015 and December 31, 2014, respectively, consist of company-sponsored mutual funds and hedge funds. For long-term incentive compensation awards granted before 2009, we typically made investments in our services that were notionally elected by plan participants and maintained them (and continue to maintain them) in a consolidated rabbi trust or separate custodial account. The rabbi trust and custodial account enable us to hold such investments separate from our other assets for the purpose of settling our obligations to participants. The investments held in the rabbi trust and custodial account remain available to the general creditors of AB.

The underlying investments of the hedge funds in which we invest include long and short positions in equity securities, fixed income securities (including various agency and non-agency asset-based securities), currencies, commodities and derivatives (including various swaps and forward contracts). These investments are valued at quoted market prices or, where quoted market prices are not available, are fair valued based on the pricing policies and procedures of the underlying funds.

U.S. Treasury Bills, the majority of which are pledged as collateral with clearing organizations, are held by SCB LLC in its investment account. These clearing organizations have the ability by contract or custom to sell or re-pledge this collateral.

We allocate seed capital to our investment teams to help them develop new products and services for our clients. The seed capital trading investments are equity and fixed income products, primarily in the form of separately-managed account portfolios, U.S. mutual funds, Luxembourg funds, Japanese investment trust management funds or Delaware business trusts. We also may allocate seed capital to investments in private equity funds, such as our consolidated venture capital fund, which holds technology, media, telecommunications, healthcare and clean-tech investments, and a third-party venture capital fund that invests in communications, consumer, digital media, healthcare and information technology markets.

Trading securities also include long positions in corporate equities, an exchange-traded fund and long exchange-traded options traded through our options desk.

The portion of trading gains (losses) for the three and nine months ended September 30, 2015 and 2014 related to trading securities held as of September 30, 2015 and 2014 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)

Net (losses) gains recognized during the period	$	(31,965	)	$	(14,784	)	$	(26,613	)	$	10,985
Less: net gains recognized during the period on trading securities sold during the period	1,059			3,580			7,612			11,446
Unrealized (losses) recognized during the period on trading securities held	$	(33,024	)	$	(18,364	)	$	(34,225	)	$	(461	)