Consolidated Sponsored Investment Products (Tables)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balances of Consolidated Sponsored Investment Products

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

	As of December 31,
	2015			2014
($ in thousands)
Total cash	$	11,866		$	8,687
Total investments	323,335			236,652
All other assets	8,549			6,960
Total liabilities	(15,387		)	(12,556		)
Redeemable noncontrolling interest	(73,864		)	(23,071		)
The Company’s net interests in consolidated sponsored investment products	$	254,499		$	216,672
The Company's net interest as a percentage of total investments of consolidated sponsored investment products	78.7		%	91.6		%

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

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 17 and 18, respectively, as of December 31, 2015 and December 31, 2014, by fair value hierarchy level were as follows:

December 31, 2015
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	54,772	$	—	$	—	$	54,772
Marketable securities trading:
Sponsored funds	29,331		—		—		29,331
Equity securities	9,168		—		—		9,168
Marketable securities available-for-sale:
Sponsored closed-end funds	2,997		—		—		2,997
Other investments
Nonqualified retirement plan assets	5,310		—		—		5,310
Total assets measured at fair value	$	101,578	$	—	$	—	$	101,578

December 31, 2014
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:

As of December 31, 2015
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	151,156	$	1,397	$	152,553
Equity securities	162,986		7,796		—		170,782
Derivatives	33		738		—		771
Total assets measured at fair value	$	163,019	$	159,690	$	1,397	$	324,106
Liabilities
Derivatives	$	128	$	844	$	—	$	972
Short sales	5,334		75		—		5,409
Total liabilities measured at fair value	$	5,462	$	919	$	—	$	6,381

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

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

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	8,297	$	—	$	—	$	8,297
Bank loans	—		199,485		—		199,485
Total Assets Measured at Fair Value	$	8,297	$	199,485	$	—	$	207,782

Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation

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.

	Year Ended December 31,
	2015			2014
(in thousands)
Level 3 Debt Securities (a)
Balance at beginning of period	$	1,065		$	—
Purchases	913			1,119
Sales	(370		)	—
Paydowns	(10		)	(3		)
Change in unrealized loss, net	(113		)	(51		)
Change in realized loss, net	(141		)	—
Transfers from Level 2	151			—
Transfers to Level 2	(98		)	—
Balance at end of period	$	1,397		$	1,065

(a) None of the securities were internally fair valued at December 31, 2015 or December 31, 2014.

Derivative Instruments

The Company's consolidated sponsored investment products were party to the following derivative instruments for the year ended December 31, 2015:

	Volume
($ in thousands)
Purchased options	$	3,015	(a)
Written options	755		(b)
Futures contracts long/short	278		(c)
Forward foreign currency exchange purchase contracts	5,591		(d)
Forward foreign currency exchange sale contracts	29,069		(e)
Interest rate swaps	69,094		(f)
Other swaps	35,180		(f), (g)

(a)    Represents average premiums paid for the period.

(b)    Represents average premiums received for the period.

(c)    Represents average unrealized gains/losses for the period.

(d)    Represents average value payable at trade date.

(e)    Represents average value at receivable at settlement date.

(f) Represents notional value of holdings as of the end of the period.

(g) Includes credit default, total return, inflation and variance swaps.

Derivatives, Offsetting Assets

The following is a summary of the consolidated sponsored investment products' derivative instruments as of December 31, 2015. For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Consolidated Balance Sheets.

	Fair Value
	Assets			Liabilities
($ in thousands)
Futures contracts	$	77		$	128
Forward foreign currency exchange contracts	388			287
Swaps	897			502
Purchased options	2,071			63
Purchased swaptions	803			—
Written options	—			654
Total derivative assets and liabilities in the Consolidated Balance Sheets	4,236			1,634
Derivatives not subject to a master netting agreement	(978		)	(281		)
Total assets and liabilities subject to a master netting agreement	$	3,258		$	1,353

The following is a summary of the Company's consolidated sponsored investment products' assets and liabilities, net of amounts available for offset under a master netting arrangement and net of any related cash collateral received:

	As of December 31, 2015
	Amount Subject to a Master Netting Arrangement		Derivatives Available for Offset			Collateral Pledged or Received			Net Amount
($ in thousands)
Derivative assets	$	3,258	$	(1,140	)	$	(1,784	)	$	334
Derivative liabilities	1,353		(1,140		)	(209		)	4

Derivatives, Offsetting Liabilities

The following is a summary of the consolidated sponsored investment products' derivative instruments as of December 31, 2015. For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Consolidated Balance Sheets.

	Fair Value
	Assets			Liabilities
($ in thousands)
Futures contracts	$	77		$	128
Forward foreign currency exchange contracts	388			287
Swaps	897			502
Purchased options	2,071			63
Purchased swaptions	803			—
Written options	—			654
Total derivative assets and liabilities in the Consolidated Balance Sheets	4,236			1,634
Derivatives not subject to a master netting agreement	(978		)	(281		)
Total assets and liabilities subject to a master netting agreement	$	3,258		$	1,353

The following is a summary of the Company's consolidated sponsored investment products' assets and liabilities, net of amounts available for offset under a master netting arrangement and net of any related cash collateral received:

	As of December 31, 2015
	Amount Subject to a Master Netting Arrangement		Derivatives Available for Offset			Collateral Pledged or Received			Net Amount
($ in thousands)
Derivative assets	$	3,258	$	(1,140	)	$	(1,784	)	$	334
Derivative liabilities	1,353		(1,140		)	(209		)	4

Derivatives, Net Gains (Losses)

The following is a summary of the net gains (losses) recognized in income by primary risk exposure:

	Year Ended December 31,
	2015
($ in thousands)
Interest rate contracts	$	(80	)
Foreign currency exchange contracts	181
Equity contracts	312
Commodity contracts	324
Credit contracts	8
Total	$	745