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Consolidated Sponsored Investment Products (Tables) | 12 Months Ended
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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 |

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