Consolidated Sponsored Investment Products (Tables)

3 Months Ended

Mar. 31, 2015

Balances of Consolidated Sponsored Investment Products

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014:

	As of
	March 31, 2015			December 31, 2014
($ in thousands)
Total cash	$	11,612		$	8,687
Total investments		254,481			236,652
All other assets		8,629			6,960
Total liabilities		(16,491	)		(12,556	)
Redeemable noncontrolling interests		(34,977	)		(23,071	)
The Company’s net interests in consolidated sponsored investment products	$	223,254		$	216,672

Condensed Consolidated Balance Sheets

The following tables reflect the impact of the consolidated sponsored investment products in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014, respectively:

As of March 31, 2015

	Balance Before Consolidation of Investment Products			Consolidated Sponsored Investment Products		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	166,031		$	11,612	$	—		$	177,643
Total investments		277,471			254,481		(220,476	)		311,476
All other assets		185,404			8,629		(2,778	)		191,255
Total assets	$	628,906		$	274,722	$	(223,254	)	$	680,374
Total liabilities	$	63,762		$	19,269	$	(2,778	)	$	80,253
Redeemable noncontrolling interest		—			—		34,977			34,977
Equity attributable to stockholders of the Company		565,368			255,453		(255,453	)		565,368
Non-redeemable noncontrolling interest		(224	)		—		—			(224	)
Total liabilities and equity	$	628,906		$	274,722	$	(223,254	)	$	680,374

As of December 31, 2014

	Balance Before Consolidation of Investment Products			Consolidated Sponsored Investment Products		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	202,847		$	8,687	$	—		$	211,534
Total investments		279,863			236,652		(216,415	)		300,100
All other assets		180,436			6,960		(257	)		187,139
Total assets	$	663,146		$	252,299	$	(216,672	)	$	698,773
Total liabilities	$	99,794		$	12,813	$	(257	)	$	112,350
Redeemable noncontrolling interest		—			—		23,071			23,071
Equity attributable to stockholders of the Company		563,542			239,486		(239,486	)		563,542
Non-redeemable noncontrolling interest		(190	)		—		—			(190	)
Total liabilities and equity	$	663,146		$	252,299	$	(216,672	)	$	698,773

(a) Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest.

Condensed Consolidated Statement of Operations

The following table reflects the impact of the consolidated sponsored investment products in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2015 and 2014:

For the Three Months Ended March 31, 2015

	Balance Before Consolidation of Investment Products		Consolidated Sponsored Investment Products			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	104,232	$	—		$	(401	)	$	103,831
Total operating expenses		78,471		1,219			(401	)		79,289
Operating income (loss)		25,761		(1,219	)		—			24,542
Total other non-operating income (expense)		4,415		4,914			(3,278	)		6,051
Income (loss) before income tax expense		30,176		3,695			(3,278	)		30,593
Income tax expense		10,868		—			—			10,868
Net income (loss)		19,308		3,695			(3,278	)		19,725
Noncontrolling interests		34		—			(417	)		(383	)
Net income (loss) attributable to the Company	$	19,342	$	3,695		$	(3,695	)	$	19,342

For the Three Months Ended March 31, 2014

	Balance Before Consolidation of Investment Products		Consolidated Sponsored Investment Products			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	107,855	$	—		$	16		$	107,871
Total operating expenses		74,914		315			16			75,245
Operating income (loss)		32,941		(315	)		—			32,626
Total other non-operating income (expense)		2,997		910			(756	)		3,151
Income (loss) before income tax expense		35,938		595			(756	)		35,777
Income tax expense		14,010		—			—			14,010
Net income (loss)		21,928		595			(756	)		21,767
Noncontrolling interests		10		—			161			171
Net income (loss) attributable to the Company	$	21,938	$	595		$	(595	)	$	21,938

(a) Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest.

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets of the consolidated sponsored investment products measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of March 31, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	144,391	$	913	$	145,304
Equity securities		108,408		769		—		109,177
Derivatives		88		179		—		267
Total Assets Measured at Fair Value	$	108,496	$	145,339	$	913	$	254,748
Liabilities
Derivatives	$	129	$	43	$	—	$	172
Short sales		8,975		538		—		9,513
Total Liabilities Measured at Fair Value	$	9,104	$	581	$	—	$	9,685

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities		82,417		18,120		—		100,537
Derivatives		154		227		—		381
Total Assets Measured at Fair Value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales		7,491		674		—		8,165
Total Liabilities Measured at Fair Value	$	7,682	$	674	$	—	$	8,356

Consolidated Sponsored Investment Products [Member]

Reconciliation of Assets Related to Consolidated Sponsored Investment Products

The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.

	For the Three Months Ended March 31, 2015
Level 3 Debt securities (a)
Balance at beginning of period	$	1,065
Paydowns		(1	)
Transferred to Level 2		(152	)
Change in unrealized gain/loss		1
Balance at end of period	$	913

(a) None of the securities in the above table were internally fair valued at March 31, 2015.