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Investments
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments

Investments on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 included available-for-sale and trading securities. At March 31, 2017 and December 31, 2016, Federated held investments totaling $122.1 million and $130.8 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.

Available-for-sale securities were as follows:
 
 
March 31, 2017
 
December 31, 2016
 
 
 
 
Gross Unrealized
 
Estimated
Fair
 
 
 
Gross Unrealized
 
Estimated
Fair
(in thousands)
 
Cost
 
Gains
 
(Losses)
 
Value
 
Cost
 
Gains
 
(Losses)
 
Value
Equity funds
 
$
20,907

 
$
2,668

 
$
(46
)
 
$
23,529

 
$
23,883

 
$
2,112

 
$
(266
)
 
$
25,729

Fixed-income funds
 
99,079

 
94

 
(581
)
 
98,592

 
105,514

 
92

 
(550
)
 
105,056

Total available-for-sale securities
 
$
119,986

 
$
2,762

 
$
(627
)
 
$
122,121

 
$
129,397

 
$
2,204

 
$
(816
)
 
$
130,785



Federated’s trading securities totaled $60.9 million and $65.5 million at March 31, 2017 and December 31, 2016, respectively. 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 March 31, 2017 and December 31, 2016, were primarily composed of domestic debt securities ($46.1 million and $45.5 million, respectively), stocks of large U.S. and international companies ($7.5 million and $7.2 million, respectively) and investments in Federated Funds ($5.7 million and $8.9 million, respectively).

The following table presents gains and losses recognized in Gain 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)
 
2017

 
2016

Net unrealized gains
 
 
 
 
Trading securities
 
$
600

 
$
2,156

Derivatives1
 
367

 
107

Realized gains2
 
 
 
 
Available-for-sale securities
 
1,033

 
0

Trading securities
 
704

 
116

Derivatives1
 
444

 
406

Realized losses2
 
 
 
 
Available-for-sale securities
 
0

 
(17
)
Trading securities
 
(290
)
 
(1,297
)
Derivatives1
 
(296
)
 
(380
)
Gain on securities, net3
 
$
2,562

 
$
1,091

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 $1.3 million and $1.0 million for the three months ended March 31, 2017, and 2016, respectively.