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Investments
 9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments

Investments on the Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 included available-for-sale and trading securities. At September 30, 2017 and December 31, 2016, Federated held investments totaling $116.1 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:
 
 
September 30, 2017
 
December 31, 2016
 
 
 
 
Gross Unrealized
 
Estimated
Fair
 
 
 
Gross Unrealized
 
Estimated
Fair
(in thousands)
 
Cost
 
Gains
 
(Losses)
 
Value
 
Cost
 
Gains
 
(Losses)
 
Value
Equity funds
 
$
14,040

 
$
2,188

 
$
(23
)
 
$
16,205

 
$
23,883

 
$
2,112

 
$
(266
)
 
$
25,729

Fixed-income funds
 
100,468

 
105

 
(642
)
 
99,931

 
105,514

 
92

 
(550
)
 
105,056

Total available-for-sale securities
 
$
114,508

 
$
2,293

 
$
(665
)
 
$
116,136

 
$
129,397

 
$
2,204

 
$
(816
)
 
$
130,785



The decrease in the available-for-sale securities as of September 30, 2017 as compared to December 31, 2016 primarily related to net redemptions of available-for-sale securities during 2017.

Federated's trading securities totaled $50.7 million and $65.5 million at September 30, 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 represent other trading investments held in Separate Accounts.

Federated's trading securities as of September 30, 2017 and December 31, 2016, were primarily composed of domestic debt securities ($46.0 million and $45.5 million, respectively), stocks of large U.S. and international companies ($3.6 million and $7.2 million, respectively) and investments in Federated Funds ($0.6 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
 
Nine Months Ended
 
 
September 30,
 
September 30,
(in thousands)
 
2017

 
2016

 
2017

 
2016

Net unrealized gains (losses)
 
 
 
 
 
 
 
 
Trading securities
 
$
151

 
$
1,684

 
$
526

 
$
5,410

Derivatives1
 
(499
)
 
315

 
493

 
11

Realized gains2
 
 
 
 
 
 
 
 
Available-for-sale securities3
 
914

 
266

 
2,806

 
291

Trading securities
 
258

 
472

 
2,014

 
1,058

Derivatives1
 
914

 
28

 
1,648

 
583

Realized losses2
 
 
 
 
 
 
 
 
Available-for-sale securities3
 
0

 
0

 
(14
)
 
(1,645
)
Trading securities
 
(71
)
 
(273
)
 
(692
)
 
(2,048
)
Derivatives1
 
0

 
(460
)
 
(318
)
 
(1,107
)
Gain on securities, net4
 
$
1,667

 
$
2,032

 
$
6,463

 
$
2,553

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 $9.0 million and $26.4 million for the three and nine months ended September 30, 2017, respectively. These amounts include a redemption of $1.5 million recorded as a receivable during the second quarter that was not settled until after June 30, 2017. 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, respectively.
4
Amounts related to consolidated entities, primarily Federated Funds, totaled $0.6 million and $3.2 million for the three and nine months ended September 30, 2017, respectively and $1.6 million and $3.5 million for the three and nine months ended September 30, 2016, respectively.