institutional research services revenues consist of brokerage commissions derived from securities transactions executed on an agency basis on behalf of mutual funds , institutional and private wealth management clients as well as investment banking revenue , which consists of underwriting profits , selling concessions and management fees associated with underwriting activities . commission revenues vary directly with account trading activity and new account generation . investment banking revenues are directly impacted by the overall market conditions , which affect the number of public offerings which may take place . 28 distribution fees and other income primarily include distribution fee revenue earned in accordance with rule 12b-1 of the company act , as amended , along with sales charges and underwriting fees associated with the sale of the mutual funds plus other revenues . distribution fees fluctuate based on the level of aum and the amount and type of mutual funds sold directly by g.distributors or through various distribution channels . compensation costs include variable and fixed compensation and related expenses paid to officers , portfolio managers , sales , trading , research and all other professional staff . variable compensation paid to sales personnel and portfolio management generally represents 40 % of revenues and is the largest component of total compensation costs . distribution costs include marketing , product distribution and promotion costs . management fee is incentive-based and entirely variable compensation in the amount of 10 % of the aggregate pre-tax profits which is paid to mr. gabelli or his designee for acting as ceo pursuant to his 2008 employment agreement so long as he is an executive of gbl and devotes the substantial majority of his working time to the business . other operating expenses include general and administrative operating costs and clearing charges and fees for gabelli & company 's brokerage operation . other income and expenses include net gains and losses from investments ( which includes both realized and unrealized gains and losses from trading securities and equity in earnings of investments in partnerships ) , interest and dividend income , and interest expense . net gains and losses from investments are derived from our proprietary investment portfolio consisting of various public and private investments . net income ( loss ) attributable to noncontrolling interests represents the share of net income attributable to the minority stockholders , as reported on a separate company basis , of our consolidated majority-owned subsidiaries and net income attributable to third party limited partners of certain partnerships and offshore funds we consolidate . please refer to notes a and d in our consolidated financial statements included elsewhere in this report . consolidated statements of financial condition we ended the 2012 year with approximately $ 568.9 million in cash and investments , which includes $ 5.2 million of cash and investments held by our consolidated investment partnerships . the $ 568.9 million consists of $ 190.6 million cash and cash equivalents , primarily invested in our 100 % u.s. treasury money market fund , $ 138.5 million invested in common stocks , $ 43.0 million invested in u.s. treasury obligations , $ 97.6 million invested in partnerships and $ 2.1 million in other types of investments . this also included approximately $ 97.1 million of our available for sale ( “ afs ” ) securities , consisting of investments in the gabelli dividend & income trust , the gdl fund , and westwood holdings group and various other gabelli and gamco open-end funds . our debt consisted of $ 99 million of 5.5 % senior notes due may 2013 , $ 100 million of 5.875 % senior notes due june 1 , 2021 and $ 17.4 million in zero coupon subordinated debentures ( current principal amount of $ 21.7 million ) due december 31 , 2015 , which were originally distributed to shareholders as a dividend on december 31 , 2010. equity , excluding noncontrolling interest , was $ 367.6 million or $ 14.28 per share on december 31 , 2012 compared to $ 404.0 million or $ 15.10 per share on december 31 , 2011. the decline in equity from the end of 2011 was principally related to the declaration of dividends of $ 76.4 million and the purchase of treasury stock of $ 54.9 million during 2012 partially offset by comprehensive income of $ 79.3 million and $ 13.6 million of stock based compensation . replace_table_token_6_th our strong and liquid balance sheet provides us access to financial markets and the flexibility to opportunistically add operating resources to our firm and consider strategic initiatives . we filed a shelf registration with the sec in 2012 which , among other things , provides us the flexibility to sell any combination of senior and subordinate debt securities , convertible debt securities , equity securities ( including common and preferred stock ) , and other securities up to a total amount of $ 400 million . the shelf is available through may 30 , 2015 , at which time it may be renewed . our primary goal is to use our liquid resources to opportunistically and strategically grow operating income . while this goal is a priority , if opportunities are not present with what we consider a margin of safety , we will consider alternatives to return capital to our shareholders including stock repurchase and dividends . 29 assets under management highlights ( unaudited ) we reported assets under management as follows ( dollars in millions ) : replace_table_token_7_th our net cash inflows or outflows by product line were as follows ( in millions ) : replace_table_token_8_th ( a ) includes $ 104 million and $ 100 million of proprietary seed capital at december 31 , 2012 and december 31 , 2011 , respectively . story_separator_special_tag management fee : in 2011 management fee expense increased 2.5 % to $ 12.3 million versus $ 12.0 million in 2010. management fee expense is incentive-based and entirely variable in the amount of 10 % of the aggregate pre-tax profits which is paid to mr. gabelli ( or his designee ) for acting as ceo pursuant to his 2008 employment agreement so long as he is an executive of gbl and devoting the substantial majority of his working time to the business . in accordance with his 2008 employment agreement , mr. gabelli chose to allocate $ 0.5 million and $ 2.4 million of his management fee to employees of the company in 2011 and 2010 , respectively . distribution costs : distribution costs , which include marketing , promotion and distribution costs increased $ 13.4 million , or 43.2 % , to $ 44.4 million in 2011 from $ 31.0 million in 2010. included in this increase was $ 5.6 million in one-time costs directly related to the launch of a new closed-end fund in the first quarter of 2011. excluding this charge , distribution costs were $ 7.8 million , or 25.2 % , higher in 2011 driven by an increase in average open-end equity mutual funds aum of 28.4 % . other operating expenses : our other operating expenses were $ 24.2 million in 2011 compared to $ 22.5 million in 2010. this 7.6 % increase was spread across multiple categories of expenses with no one expense making up a significant portion of the increase . operating income and margin operating income was $ 113.3 million for the year ended december 31 , 2011 , increasing 24.5 % from $ 91.0 million in the prior year . the year over year increase in operating income was primarily due to the growth in revenues which were largely attributable to the higher levels of average aum in 2011 versus 2010. operating expenses grew at a slower rate benefiting from lower growth in non-variable compensation and other operating expenses and the impact of lower non-operating income on management fee . significant charges unique to each period included $ 5.6 million in distribution costs related to the launch of a new closed-end fund in 2011 and a $ 5.8 million charge to compensation costs in 2010 related to the acceleration of rsas . while these charges reduced operating income for each year their net impact on the year over year comparison of total operating income was only $ 0.2 million . operating margin was 34.6 % for the year ended december 31 , 2011 , versus 32.5 % in the prior year period . operating income before management fee was $ 125.6 million for the year ended of 2011 , versus $ 103.0 million in the prior year . operating margin before management fee was 38.4 % in 2011 versus 36.8 % in 2010. the reconciliation of operating income before management fee and operating margin before management fee is provided at the end of this section . other income and expense total other income ( expense ) ( which represents primarily investment income from our proprietary investments ) , net of interest expense , was an expense of $ 2.9 million for the year ended december 31 , 2011 compared to $ 18.3 million of income in 2010. net gain from investments was $ 5.6 million in 2011 as compared to $ 24.4 million in 2010. interest and dividend income was $ 6.6 million in 2011 compared to $ 5.9 million in 2010. the increase of $ 0.7 million was due to an increase of $ 1.0 million of dividend income offset by a reduction of interest income of $ 0.3 million due to lower interest rates on our cash and cash equivalent holdings . 35 interest expense increased $ 3.0 million to $ 15.0 million in 2011 , from $ 12.0 million in 2010. the increase was primarily due to the issuance of $ 100 million of 5.875 % ten-year senior notes in may 2011 and the issuance of $ 86.4 million in zero coupon subordinated debentures on december 31 , 2010 , slightly offset by the repurchases of the $ 40 million 2011 notes and the $ 60 million 2018 notes during the course of 2010. income taxes the effective tax rate was 36.9 % for the year ended december 31 , 2011 , versus 36.0 % for the year ended december 31 , 2010. net income attributable to noncontrolling interest net income attributable to noncontrolling interests was a loss of $ 7,000 in 2011 compared to $ 1.2 million of expense in 2010. the decrease was primarily due to decreased earnings in 2011 as compared to 2010 from the partnerships and offshore funds that we consolidate . net income net income for 2011 was $ 69.7 million or $ 2.61 per fully diluted share versus $ 68.8 million or $ 2.52 per fully diluted share for 2010. shareholder compensation and initiatives during 2011 , we returned $ 51.2 million of our earnings to shareholders through dividends and stock repurchases . we returned to shareholders a total of $ 0.15 per share in regular quarterly cash dividends and a special dividend of $ 1.00 per share totaling $ 30.8 million during 2011. during 2010 , we returned $ 139.2 million of our earnings to shareholders through dividends and stock repurchases . we returned to shareholders $ 1.82 per share in cash dividends through regular quarterly cash dividends and two special cash dividends of $ 0.90 per share and $ 0.80 per share , totaling $ 49.4 million , in 2010. additionally , we paid a special dividend of $ 59.6 million ( $ 3.20 of principal per share or $ 86.4 million ) to shareholders in the form of a five-year , zero coupon subordinated debenture due 2015. through our stock buyback program , we repurchased 450,966 and 684,003 shares in 2011 and 2010 , respectively , for a

liquidity and capital resources our principal assets are highly liquid in nature and consist of cash and cash equivalents , short-term investments , securities held for investment purposes , investments in mutual funds , and investment partnerships . cash and cash equivalents are comprised primarily of 100 % u.s. treasury money market funds managed by gamco . although investments in partnerships and offshore funds are subject to restrictions on the timing of distributions , the underlying investments of such partnerships or funds are , for the most part , liquid , and the valuations of these products reflect that underlying liquidity . summary cash flow data derived from our audited consolidated statements of cash flows are as follows : replace_table_token_14_th cash and liquidity requirements have historically been met through cash generated by operating income and our borrowing capacity . we filed a registration with the sec in 2012 which , among other things , provides us opportunistic flexibility to sell any combination of senior and subordinate debt securities , convertible debt securities , equity securities ( including common and preferred stock ) , and other securities up to a total amount of $ 400 million . the shelf is available through may 30 , 2015 , at which time it may be renewed . at december 31 , 2012 , we had cash and cash equivalents of $ 190.6 million , a decrease of $ 85.7 million from the prior year-end primarily due to the company 's financing activities described below . cash and cash equivalents of $ 0.9 million and investments in securities of $ 7.0 million held by consolidated investment partnerships and offshore funds may not be readily available for the company to access .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our principal assets are highly liquid in nature and consist of cash and cash equivalents , short-term investments , securities held for investment purposes , investments in mutual funds , and investment partnerships . cash and cash equivalents are comprised primarily of 100 % u.s. treasury money market funds managed by gamco . although investments in partnerships and offshore funds are subject to restrictions on the timing of distributions , the underlying investments of such partnerships or funds are , for the most part , liquid , and the valuations of these products reflect that underlying liquidity . summary cash flow data derived from our audited consolidated statements of cash flows are as follows : replace_table_token_14_th cash and liquidity requirements have historically been met through cash generated by operating income and our borrowing capacity . we filed a registration with the sec in 2012 which , among other things , provides us opportunistic flexibility to sell any combination of senior and subordinate debt securities , convertible debt securities , equity securities ( including common and preferred stock ) , and other securities up to a total amount of $ 400 million . the shelf is available through may 30 , 2015 , at which time it may be renewed . at december 31 , 2012 , we had cash and cash equivalents of $ 190.6 million , a decrease of $ 85.7 million from the prior year-end primarily due to the company 's financing activities described below . cash and cash equivalents of $ 0.9 million and investments in securities of $ 7.0 million held by consolidated investment partnerships and offshore funds may not be readily available for the company to access .
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 Suspicious Activity Report : institutional research services revenues consist of brokerage commissions derived from securities transactions executed on an agency basis on behalf of mutual funds , institutional and private wealth management clients as well as investment banking revenue , which consists of underwriting profits , selling concessions and management fees associated with underwriting activities . commission revenues vary directly with account trading activity and new account generation . investment banking revenues are directly impacted by the overall market conditions , which affect the number of public offerings which may take place . 28 distribution fees and other income primarily include distribution fee revenue earned in accordance with rule 12b-1 of the company act , as amended , along with sales charges and underwriting fees associated with the sale of the mutual funds plus other revenues . distribution fees fluctuate based on the level of aum and the amount and type of mutual funds sold directly by g.distributors or through various distribution channels . compensation costs include variable and fixed compensation and related expenses paid to officers , portfolio managers , sales , trading , research and all other professional staff . variable compensation paid to sales personnel and portfolio management generally represents 40 % of revenues and is the largest component of total compensation costs . distribution costs include marketing , product distribution and promotion costs . management fee is incentive-based and entirely variable compensation in the amount of 10 % of the aggregate pre-tax profits which is paid to mr. gabelli or his designee for acting as ceo pursuant to his 2008 employment agreement so long as he is an executive of gbl and devotes the substantial majority of his working time to the business . other operating expenses include general and administrative operating costs and clearing charges and fees for gabelli & company 's brokerage operation . other income and expenses include net gains and losses from investments ( which includes both realized and unrealized gains and losses from trading securities and equity in earnings of investments in partnerships ) , interest and dividend income , and interest expense . net gains and losses from investments are derived from our proprietary investment portfolio consisting of various public and private investments . net income ( loss ) attributable to noncontrolling interests represents the share of net income attributable to the minority stockholders , as reported on a separate company basis , of our consolidated majority-owned subsidiaries and net income attributable to third party limited partners of certain partnerships and offshore funds we consolidate . please refer to notes a and d in our consolidated financial statements included elsewhere in this report . consolidated statements of financial condition we ended the 2012 year with approximately $ 568.9 million in cash and investments , which includes $ 5.2 million of cash and investments held by our consolidated investment partnerships . the $ 568.9 million consists of $ 190.6 million cash and cash equivalents , primarily invested in our 100 % u.s. treasury money market fund , $ 138.5 million invested in common stocks , $ 43.0 million invested in u.s. treasury obligations , $ 97.6 million invested in partnerships and $ 2.1 million in other types of investments . this also included approximately $ 97.1 million of our available for sale ( “ afs ” ) securities , consisting of investments in the gabelli dividend & income trust , the gdl fund , and westwood holdings group and various other gabelli and gamco open-end funds . our debt consisted of $ 99 million of 5.5 % senior notes due may 2013 , $ 100 million of 5.875 % senior notes due june 1 , 2021 and $ 17.4 million in zero coupon subordinated debentures ( current principal amount of $ 21.7 million ) due december 31 , 2015 , which were originally distributed to shareholders as a dividend on december 31 , 2010. equity , excluding noncontrolling interest , was $ 367.6 million or $ 14.28 per share on december 31 , 2012 compared to $ 404.0 million or $ 15.10 per share on december 31 , 2011. the decline in equity from the end of 2011 was principally related to the declaration of dividends of $ 76.4 million and the purchase of treasury stock of $ 54.9 million during 2012 partially offset by comprehensive income of $ 79.3 million and $ 13.6 million of stock based compensation . replace_table_token_6_th our strong and liquid balance sheet provides us access to financial markets and the flexibility to opportunistically add operating resources to our firm and consider strategic initiatives . we filed a shelf registration with the sec in 2012 which , among other things , provides us the flexibility to sell any combination of senior and subordinate debt securities , convertible debt securities , equity securities ( including common and preferred stock ) , and other securities up to a total amount of $ 400 million . the shelf is available through may 30 , 2015 , at which time it may be renewed . our primary goal is to use our liquid resources to opportunistically and strategically grow operating income . while this goal is a priority , if opportunities are not present with what we consider a margin of safety , we will consider alternatives to return capital to our shareholders including stock repurchase and dividends . 29 assets under management highlights ( unaudited ) we reported assets under management as follows ( dollars in millions ) : replace_table_token_7_th our net cash inflows or outflows by product line were as follows ( in millions ) : replace_table_token_8_th ( a ) includes $ 104 million and $ 100 million of proprietary seed capital at december 31 , 2012 and december 31 , 2011 , respectively . story_separator_special_tag management fee : in 2011 management fee expense increased 2.5 % to $ 12.3 million versus $ 12.0 million in 2010. management fee expense is incentive-based and entirely variable in the amount of 10 % of the aggregate pre-tax profits which is paid to mr. gabelli ( or his designee ) for acting as ceo pursuant to his 2008 employment agreement so long as he is an executive of gbl and devoting the substantial majority of his working time to the business . in accordance with his 2008 employment agreement , mr. gabelli chose to allocate $ 0.5 million and $ 2.4 million of his management fee to employees of the company in 2011 and 2010 , respectively . distribution costs : distribution costs , which include marketing , promotion and distribution costs increased $ 13.4 million , or 43.2 % , to $ 44.4 million in 2011 from $ 31.0 million in 2010. included in this increase was $ 5.6 million in one-time costs directly related to the launch of a new closed-end fund in the first quarter of 2011. excluding this charge , distribution costs were $ 7.8 million , or 25.2 % , higher in 2011 driven by an increase in average open-end equity mutual funds aum of 28.4 % . other operating expenses : our other operating expenses were $ 24.2 million in 2011 compared to $ 22.5 million in 2010. this 7.6 % increase was spread across multiple categories of expenses with no one expense making up a significant portion of the increase . operating income and margin operating income was $ 113.3 million for the year ended december 31 , 2011 , increasing 24.5 % from $ 91.0 million in the prior year . the year over year increase in operating income was primarily due to the growth in revenues which were largely attributable to the higher levels of average aum in 2011 versus 2010. operating expenses grew at a slower rate benefiting from lower growth in non-variable compensation and other operating expenses and the impact of lower non-operating income on management fee . significant charges unique to each period included $ 5.6 million in distribution costs related to the launch of a new closed-end fund in 2011 and a $ 5.8 million charge to compensation costs in 2010 related to the acceleration of rsas . while these charges reduced operating income for each year their net impact on the year over year comparison of total operating income was only $ 0.2 million . operating margin was 34.6 % for the year ended december 31 , 2011 , versus 32.5 % in the prior year period . operating income before management fee was $ 125.6 million for the year ended of 2011 , versus $ 103.0 million in the prior year . operating margin before management fee was 38.4 % in 2011 versus 36.8 % in 2010. the reconciliation of operating income before management fee and operating margin before management fee is provided at the end of this section . other income and expense total other income ( expense ) ( which represents primarily investment income from our proprietary investments ) , net of interest expense , was an expense of $ 2.9 million for the year ended december 31 , 2011 compared to $ 18.3 million of income in 2010. net gain from investments was $ 5.6 million in 2011 as compared to $ 24.4 million in 2010. interest and dividend income was $ 6.6 million in 2011 compared to $ 5.9 million in 2010. the increase of $ 0.7 million was due to an increase of $ 1.0 million of dividend income offset by a reduction of interest income of $ 0.3 million due to lower interest rates on our cash and cash equivalent holdings . 35 interest expense increased $ 3.0 million to $ 15.0 million in 2011 , from $ 12.0 million in 2010. the increase was primarily due to the issuance of $ 100 million of 5.875 % ten-year senior notes in may 2011 and the issuance of $ 86.4 million in zero coupon subordinated debentures on december 31 , 2010 , slightly offset by the repurchases of the $ 40 million 2011 notes and the $ 60 million 2018 notes during the course of 2010. income taxes the effective tax rate was 36.9 % for the year ended december 31 , 2011 , versus 36.0 % for the year ended december 31 , 2010. net income attributable to noncontrolling interest net income attributable to noncontrolling interests was a loss of $ 7,000 in 2011 compared to $ 1.2 million of expense in 2010. the decrease was primarily due to decreased earnings in 2011 as compared to 2010 from the partnerships and offshore funds that we consolidate . net income net income for 2011 was $ 69.7 million or $ 2.61 per fully diluted share versus $ 68.8 million or $ 2.52 per fully diluted share for 2010. shareholder compensation and initiatives during 2011 , we returned $ 51.2 million of our earnings to shareholders through dividends and stock repurchases . we returned to shareholders a total of $ 0.15 per share in regular quarterly cash dividends and a special dividend of $ 1.00 per share totaling $ 30.8 million during 2011. during 2010 , we returned $ 139.2 million of our earnings to shareholders through dividends and stock repurchases . we returned to shareholders $ 1.82 per share in cash dividends through regular quarterly cash dividends and two special cash dividends of $ 0.90 per share and $ 0.80 per share , totaling $ 49.4 million , in 2010. additionally , we paid a special dividend of $ 59.6 million ( $ 3.20 of principal per share or $ 86.4 million ) to shareholders in the form of a five-year , zero coupon subordinated debenture due 2015. through our stock buyback program , we repurchased 450,966 and 684,003 shares in 2011 and 2010 , respectively , for a

