Investments



Investments consist of:
	March 31, 2016		December 31, 2015
	(in thousands)

Available-for-sale	$	293	$	364
Trading:
Long-term incentive compensation-related	49,120		59,150
U.S. Treasury Bills	29,961		24,942
Seed capital	282,176		406,322
Equities	70,315		43,584
Exchange-traded options	4,709		5,910
Investments in limited partnership hedge funds:
Long-term incentive compensation-related	16,391		19,004
Seed capital	19,695		20,082
Consolidated private equity fund	—		23,897
Private equity	38,248		48,761
Investments in consolidated VIEs	243,248		—
Other	17,896		17,784
Total investments	$	772,052	$	669,800

Total investments related to long-term incentive compensation obligations of $65.5 million and $78.2 million as of March 31, 2016 and December 31, 2015, 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 in our 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 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. As of March 31, 2016 and December 31, 2015, our seed capital investments were $395.4 million and $478.0 million, respectively.

Our consolidated venture capital fund, previously consolidated under the voting interest entity model, is considered a consolidated VIE effective January 1, 2016 upon the adoption of ASU 2015-02.

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 months ended March 31, 2016 and 2015 related to trading securities held as of March 31, 2016 and 2015 were as follows:



	Three Months Ended March 31,
	2016			2015
	(in thousands)

Net gains recognized during the period	$	1,232		$	6,784
Less: net (losses) gains recognized during the period on trading securities sold during the period	(10,361		)	6,047
Unrealized gains recognized during the period on trading securities held	$	11,593		$	737