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Investments
 3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments

Investments on the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 included available-for-sale and trading securities. At March 31, 2016 and December 31, 2015, Federated held investments totaling $132.0 million and $141.7 million, respectively, in fluctuating-value sponsored mutual funds that were classified as available-for-sale securities and were included in Investments—affiliates on the Consolidated Balance Sheets. The decrease in Investments—affiliates primarily related to a newly consolidated VIE as a result of the adoption of ASU 2015-02 and is now recorded in Investments—consolidated investment companies. See Note (2) for additional information.

Available-for-sale securities were as follows:
 
 
March 31, 2016
 
December 31, 2015
 
 
 
 
Gross Unrealized
 
Estimated
Fair
 
 
 
Gross Unrealized
 
Estimated
Fair
(in thousands)
 
Cost
 
Gains
 
(Losses)
 
Value
 
Cost
 
Gains
 
(Losses)
 
Value
Equity mutual funds
 
$
32,459

 
$
566

 
$
(1,996
)
 
$
31,029

 
$
32,357

 
$
342

 
$
(2,416
)
 
$
30,283

Fixed-income mutual funds
 
103,331

 
123

 
(2,503
)
 
100,951

 
115,396

 
109

 
(4,040
)
 
111,465

Total fluctuating-value mutual funds
 
$
135,790

 
$
689

 
$
(4,499
)
 
$
131,980

 
$
147,753

 
$
451

 
$
(6,456
)
 
$
141,748



As of March 31, 2016, unrealized losses of $4.5 million related to investments with a fair value of $113.8 million. Of these, investments with a fair value of $107.4 million with unrealized losses of $4.1 million have been in a continuous unrealized loss position for 12 months or longer. The remaining investments with a fair value of $6.4 million with unrealized losses of $0.4 million have been in a continuous unrealized loss position for less than 12 months. As of December 31, 2015, unrealized losses of $6.5 million related to investments with a fair value of $124.0 million. Of these, investments with a fair value of $92.6 million with unrealized losses of $5.5 million have been in a continuous unrealized loss position for 12 months or longer. The remaining investments with a fair value of $31.4 million with unrealized losses of $1.0 million have been in a continuous unrealized loss position for less than 12 months.

Federated regularly reviews its investments for other-than-temporary impairment using both qualitative and quantitative criteria. This review considers management's ability and intent to hold the security, as well as the near-term prospects of the investment and the duration and severity of the unrealized loss. Management believes the unrealized loss associated with Federated's available-for-sale securities as of March 31, 2016 will be recovered within the foreseeable future and intends to hold these investments. Management does not believe these investments are other-than temporarily impaired.

Federated’s trading securities totaled $62.3 million and $32.4 million at March 31, 2016 and December 31, 2015, respectively. The increase in trading securities primarily related to the aforementioned newly consolidated VIE which was previously recorded in Investments—affiliates on the Consolidated Balance Sheets. See Note (2) for additional information. Federated consolidates certain Federated Funds into its Consolidated Financial Statements as a result of Federated’s controlling financial interest in the Federated Fund (see Note (5)). All investments held by these Federated Funds were included in Investments—consolidated investment companies on Federated’s Consolidated Balance Sheets. Investments—other on the Consolidated Balance Sheets represented other trading investments held in Separate Accounts (which include separately managed accounts, institutional accounts, sub-advised funds and other managed products).

Federated’s trading securities as of March 31, 2016 and December 31, 2015, were primarily composed of domestic debt securities ($43.8 million and $9.0 million, respectively), investments in Federated Funds and other mutual funds ($8.5 million and $11.0 million, respectively), and stocks of large U.S. and international companies ($6.8 million and $10.5 million, respectively).

The following table presents gains and losses recognized in Gain (loss) on securities, net on the Consolidated Statements of Income in connection with Federated's investments as well as economic derivatives held by certain consolidated Federated Funds:
 
 
Three Months Ended
 
 
March 31,
(in thousands)
 
2016

 
2015

Unrealized gain (loss)
 
 
 
 
Trading securities
 
$
2,156

 
$
456

Derivatives1
 
107

 
(159
)
Realized gains2
 
 
 
 
Trading securities
 
116

 
189

Derivatives1
 
406

 
235

Realized losses2
 
 
 
 
Available-for-sale securities
 
(17
)
 
0

Trading securities
 
(1,297
)
 
(613
)
Derivatives1
 
(380
)
 
(362
)
Gain (loss) on securities, net3
 
$
1,091

 
$
(254
)
1 
Amounts related to the settlement of economic derivatives held by certain consolidated Federated Funds.
2 
Realized gains and losses are computed on a specific-identification basis.
3
Amounts related to consolidated entities, primarily Federated Funds, totaled $1.0 million and $(0.3) million for the three months ended March 31, 2016, and 2015, respectively.