Investments



Investments consist of:
	March 31, 2019		December 31, 2018
	(in thousands)
U.S. Treasury Bills	$	—	$	392,424
Equity securities:
Long-term incentive compensation-related	36,137		38,883
Seed capital	84,697		105,951
Other	53,193		73,409
Exchange-traded options	3,046		2,568
Investments in limited partnership hedge funds:
Long-term incentive compensation-related	13,580		13,546
Seed capital	63,723		67,153
Time deposits	8,634		8,783
Other	12,183		11,627
Total investments	$	275,193	$	714,344

Total investments related to long-term incentive compensation obligations of $49.7 million and $52.4 million as of March 31, 2019 and December 31, 2018, respectively, consist of company-sponsored mutual funds and hedge funds. For long-term incentive compensation awards granted before 2009, we typically made investments in company-sponsored mutual funds and hedge funds 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.

We allocate seed capital to our investment teams to help develop new products and services for our clients. A portion of our seed capital 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. In regard to our seed capital investments, the amounts above reflect those funds in which we are not the primary beneficiary of a VIE or hold a controlling financial interest in a VOE. See Note 14, Consolidated Company-Sponsored Investment Funds, for a description of the seed capital investments that we consolidate. As of March 31, 2019 and December 31, 2018, our total seed capital investments were $381.4 million and $391.6 million, respectively. Seed capital investments in unconsolidated company-sponsored investment funds are valued using published net asset values or non-published net asset values if they are not listed on an active exchange but have net asset values that are comparable to funds with published net asset values and have no redemption restrictions.

In addition, we also have long positions in corporate equities and long exchange-traded options traded through our options desk.

The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of March 31, 2019 and 2018 were as follows:



	Three Months Ended March 31,
	2019		2018
	(in thousands)
Net gains (losses) recognized during the period	$	13,994	$	(442	)
Less: net gains recognized during the period on equity securities sold during the period	3,132		2,895
Unrealized gains (losses) recognized during the period on equity securities held	$	10,862	$	(3,337	)