Investments

9 Months Ended

Sep. 30, 2012

Investments [Abstract]

Investments

6.      Investments

Investments consist of:

	September 30, 2012		December 31, 2011
	(in thousands)
Available-for-sale (primarily seed capital)	$	14,526	$	13,883
Trading:
Deferred compensation-related		119,386		135,832
United States Treasury Bills		37,985		37,998
Seed capital		279,909		278,932
Equities and exchange-traded options		26,650		58,237
Investments in limited partnership hedge funds:
Deferred compensation-related		32,371		40,538
Seed capital		126,240		123,920
Consolidated private equity fund (10% seed capital)		50,038		58,749
Private equity (seed capital)		32,573		35,726
Other		6,895		11,479
Total investments	$	726,573	$	795,294

Total investments related to deferred compensation obligations of $151.8 million and $176.4 million as of September 30, 2012 and December 31, 2011, respectively, consist of company-sponsored mutual funds and hedge funds. We typically made investments in our services that were notionally elected by deferred compensation plan participants and maintained 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 AllianceBernstein.

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.

United States Treasury Bills are held by SCB LLC in its investment account, the majority of which are pledged as collateral with clearing organizations.

We provide seed capital to our investment teams to develop new products and services for our clients.

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