3. Investments and Fair Value Measurements

The following table is a summary of the Company’s investments:


	June 30, 2016		December 31, 2015
	Held-to- Maturity		Held-to- Maturity
Federal agency debt instruments	$	18,703	$	23,689

The following table summarizes unrealized gains, losses and fair value of investments:


	June 30, 2016			December 31, 2015
	Held-to- Maturity			Held-to- Maturity
Cost/amortized cost	$	18,703		$	23,689
Gross unrealized gains		110			82
Gross unrealized losses		(129	)		(609	)

Fair value	$	18,684		$	23,162

The following table sets forth the maturity profile of investments; however, these investments may be called prior to the maturity date:


	June 30, 2016		December 31, 2015
	Held-to- Maturity		Held-to- Maturity
Due within one year	$	3,088	$	—
Due one year through five years		5,280		8,369
Due five years through ten years		2,361		3,127
Due over ten years		7,974		12,193

Total	$	18,703	$	23,689

Fair Value Measurement

Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.

These three types of inputs create the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Instruments whose significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available. The Company’s held-to-maturity securities are categorized as Level 1.

As of December 31, 2015, the Company estimated the fair value of the acquisition payable to be $9,900. The fair value measurement of the acquisition payable was categorized as Level 3 and based on a predefined formula that included the following inputs: the contractual minimum payment obligation, European AUM, the Company’s enterprise value over global AUM, and operating results of the European business. At each reporting period through May 2016 (See Note 10), the fair value of the acquisition payable was determined using a discounted cash flows analysis. The significant unobservable inputs used in the fair value measurement were the projected AUM of the European listed ETPs (ranging from $1,000,000 to $6,000,000), the projected operating results of the European business, and the discount rate (27.5%). Significant increases (decreases) to the projected AUM of the European listed ETPs or operating results of the European business in isolation would have resulted in a higher (lower) fair value measurement. Significant increases (decreases) to the discount rate in isolation resulted in a lower (higher) fair value measurement.