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Investments
 9 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments

Investments on the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 included available-for-sale and trading securities. At September 30, 2016 and December 31, 2015, Federated held investments totaling $129.2 million and $141.7 million, respectively, in fluctuating-value Federated 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:
 
 
September 30, 2016
 
December 31, 2015
 
 
 
 
Gross Unrealized
 
Estimated
Fair
 
 
 
Gross Unrealized
 
Estimated
Fair
(in thousands)
 
Cost
 
Gains
 
(Losses)
 
Value
 
Cost
 
Gains
 
(Losses)
 
Value
Equity funds
 
$
23,649

 
$
1,623

 
$
(58
)
 
$
25,214

 
$
32,357

 
$
342

 
$
(2,416
)
 
$
30,283

Fixed-income funds
 
104,747

 
156

 
(909
)
 
103,994

 
115,396

 
109

 
(4,040
)
 
111,465

Total fluctuating-value funds
 
$
128,396

 
$
1,779

 
$
(967
)
 
$
129,208

 
$
147,753

 
$
451

 
$
(6,456
)
 
$
141,748



Federated’s trading securities totaled $66.2 million and $32.4 million at September 30, 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.

Federated’s trading securities as of September 30, 2016 and December 31, 2015, were primarily invested in domestic debt securities ($47.1 million and $9.0 million, respectively), investments in Federated Funds and other funds ($9.0 million and $11.0 million, respectively) and stocks of large U.S. and international companies ($6.2 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
 
Nine Months Ended
 
 
September 30,
 
September 30,
(in thousands)
 
2016

 
2015

 
2016

 
2015

Unrealized gain (loss)
 
 
 
 
 
 
 
 
Trading securities
 
$
1,684

 
$
(903
)
 
$
5,410

 
$
(1,485
)
Derivatives1
 
315

 
148

 
11

 
122

Realized gains2
 
 
 
 
 
 
 
 
Available-for-sale securities3
 
266

 
0

 
291

 
0

Trading securities
 
472

 
224

 
1,058

 
739

Derivatives1
 
28

 
17

 
583

 
313

Realized losses2
 
 
 
 
 
 
 
 
Available-for-sale securities3
 
0

 
(1,342
)
 
(1,645
)
 
(1,342
)
Trading securities
 
(273
)
 
(1,547
)
 
(2,048
)
 
(2,371
)
Derivatives1
 
(460
)
 
(889
)
 
(1,107
)
 
(1,502
)
Gain (loss) on securities, net4
 
$
2,032

 
$
(4,292
)
 
$
2,553

 
$
(5,526
)
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
Proceeds from redemptions of available-for-sale securities were $7.8 million and $8.0 million for the three and nine months ended September 30, 2016.
4
Amounts related to consolidated entities, primarily Federated Funds, totaled $1.6 million and $3.5 million for the three and nine months ended September 30, 2016, respectively, and $(2.6) million and $(3.7) million for the three and nine months ended September 30, 2015, respectively.