as adjusted , non-gaap diluted net income and non-gaap diluted earnings per share were $ 44.7 million and $ 0.63 , respectively , for the year ended december 31 , 2017 , and $ 31.4 million and $ 0.46 , respectively , for the year ended december 31 , 2016 , $ 34.5 million and $ 0.51 , respectively , for the year ended december 31 , 2015 . gaap and non-gaap net income for diluted earnings per share generally assumes all operating company membership units are converted into company stock at the beginning of the reporting period , and the resulting change to our gaap and non-gaap net income associated with our increased interest in the operating company is taxed at our historical effective tax rate , exclusive of the adjustments related to our tax receivable agreement and the associated liability to selling and converting shareholders , the adjustments related to the non-recurring charges recognized in operating expenses , and other adjustments as noted above . our effective tax rate , exclusive of these adjustments , was 36.7 % for the year ended december 31 , 2017 and approximately 36.8 % and 37.1 % for the years ended december 31 , 2016 and 2015 , respectively . see “ operating results — income tax expense/ ( benefit ) ” below . 27 a reconciliation of the non-gaap measures to the most comparable gaap measures is included below : replace_table_token_6_th 1 reflects the net impact of a change in the calculation of historical 754 step-ups and related deferred tax asset and corresponding liability to selling and converting shareholders recognized during the year-ended december 31 , 2017 as noted in the income tax expense/ ( benefit ) discussion below . revenue we generate revenue primarily from management fees and performance fees , which we collectively refer to as our advisory fees , by managing assets on behalf of our separately managed and sub-advised accounts , as well as our pzena funds . our advisory fee income is primarily based on our aum , as discussed below , and is recognized over the period in which investment management services are provided . following the preferred method identified in the revenue recognition topic of the financial accounting standards board accounting standards codification ( “ fasb asc ” ) , income from performance fees is recorded at the conclusion of the contractual performance period , when all contingencies are resolved . our advisory fees are primarily driven by the level of our aum . our aum increases or decreases with the net inflows or outflows of funds into our various investment strategies and with the investment performance thereof . in order to increase our aum and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients , and provide attractive returns over the long-term . the value and composition of our aum , and our ability to continue 28 to attract clients will depend on a variety of factors as described in “ item 1 — risk factors — risks related to our business — our primary source of revenue is derived from management fees , which are directly tied to our assets under management . fluctuations in aum therefore will directly impact our revenue . `` for our separately managed accounts , we are paid management fees according to a schedule , which varies by investment strategy . the substantial majority of these accounts pay us management fees pursuant to a schedule in which the rate we earn on the aum declines as the amount of aum increases . pursuant to our sub-investment advisory agreements with our clients and advisory agreements with pzena-branded funds , we are generally paid a management fee according to a schedule in which the rate we earn on the aum declines as the amount of aum increases . certain of these funds pay us fixed-rate management fees . due to the substantially larger account size of certain of these sub-advised accounts , the average advisory fees we earn on them , as a percentage of aum , are lower than the advisory fees we earn on our separately managed accounts . advisory fees we earn on separately managed accounts are generally based on the value of aum at a specific date on a quarterly basis . certain of our separately managed accounts , and all of our sub-advised accounts , are calculated based on the average of the monthly or daily market value . advisory fees are also generally adjusted for any cash flows into or out of a portfolio , where the cash flow represents greater than 10 % of the value of the portfolio . while a specific group of accounts may use the same fee rate , the calculation methodology may differ as described above . certain of our clients pay us performance fees according to the performance of their accounts relative to certain agreed-upon benchmarks , which results in a lower base fee , but allows for us to earn higher fees if the relevant investment strategy outperforms the agreed-upon benchmark . some performance-based fee arrangements include high-water mark provisions , which generally provide that if a client account underperforms relative to its performance target , it must gain back such underperformance before we can collect future performance-based fees . fulcrum fee arrangements related to one client relationship require a reduction in the base fee , or allow for a performance fee if the relevant investment strategy underperforms or outperforms , respectively , the agreed-upon benchmark . story_separator_special_tag assets in sub-advised accounts increased $ 2.2 billion , or 15.6 % , from $ 14.1 billion at december 31 , 2015 , due to $ 2.6 billion in gross inflows and $ 2.5 billion in market appreciation , partially offset by $ 2.9 billion in gross outflows . assets in pzena funds increased by $ 0.3 billion , or 33.3 % , from $ 0.9 billion at december 31 , 2015 as a result of $ 0.3 billion in gross inflows and $ 0.2 billion in market appreciation , partially offset by $ 0.2 billion in gross outflows . at december 31 , 2015 , we managed $ 11.0 billion in separately managed accounts , $ 14.1 billion in sub-advised accounts , and $ 0.9 billion in pzena funds , for a total of $ 26.0 billion in assets . for the year ended december 31 , 2015 , we experienced total gross outflows of $ 4.7 billion and market depreciation of $ 1.4 billion , which were partially offset by total gross inflows of $ 4.4 billion . assets in separately managed accounts decreased by $ 0.7 billion , or 6.0 % , from $ 11.7 billion at december 31 , 2014 due to $ 2.4 billion in gross outflows and $ 0.6 billion in market depreciation , partially offset by $ 2.3 billion in gross inflows . assets in sub-advised accounts decreased $ 0.9 billion , or 6.0 % , from $ 15.0 billion at december 31 , 2014 , due to $ 2.1 billion in gross outflows and $ 0.7 billion in market depreciation , partially offset by $ 1.9 billion in gross inflows . assets in pzena funds decreased by $ 0.1 billion , or 10.0 % , from $ 1.0 billion at december 31 , 2014 , as a result of $ 0.2 billion in gross outflows and $ 0.1 billion in market depreciation , partially offset by $ 0.2 billion in gross inflows . revenue our revenue from advisory fees earned on our separately managed accounts , sub-advised accounts and pzena funds for the three years ended december 31 , 2017 is described below : replace_table_token_12_th year ended december 31 , 2017 versus december 31 , 2016 our total revenue increased $ 33.0 million , or 30.4 % , to $ 141.3 million for the year ended december 31 , 2017 from $ 108.3 million for the year ended december 31 , 2016 . this change was driven by an increase in average assets during 2017 , as well as an increase in performance fees recognized during 2017. we recognized $ 3.2 million in performance fees during 2017 as compared to $ 0.2 million in performance fees recognized in 2016. in addition , we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2017 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum increased 26.6 % to $ 33.8 billion as of december 31 , 2017 from $ 26.7 billion as of december 31 , 2016 . our weighted average fee rates were 0.418 % and 0.406 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in separately managed accounts increased 24.5 % to $ 13.7 billion for the year ended december 31 , 2017 , from $ 11.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.556 % and 0.555 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in sub-advised accounts increased 27.4 % to $ 18.6 billion for the year ended december 31 , 2017 , from $ 14.6 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.295 % and 0.273 % for the years ended december 31 , 2017 and 2016 , respectively . the increase in weighted average fees in sub-advised accounts was due primarily to a increase in performance fees recognized in 2017 and the reduction of base fees related to the fulcrum fee arrangements of certain accounts related to one client relationship recognized in 2016. a reduction in 36 base fees was not recognized during 2017. average assets in pzena funds increased 50.0 % to $ 1.5 billion for the year ended december 31 , 2017 , from $ 1.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.679 % and 0.687 % for the years ended december 31 , 2017 and 2016 , respectively . year ended december 31 , 2016 versus december 31 , 2015 our total revenue decreased $ 8.3 million , or 7.1 % , to $ 108.3 million for the year ended december 31 , 2016 , from $ 116.6 million for the year ended december 31 , 2015 . this change was driven by a decrease in performance fees recognized during 2016 , a decrease in average assets , as well as a reduction in base fees associated with fulcrum fee arrangements . we recognized $ 0.2 million in performance fees during 2016 as compared to $ 4.5 million in performance fees recognized in 2015. we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2015 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum decreased 2.6 % to $ 26.7 billion as of december 31 , 2016 from $ 27.4 billion as of december 31 , 2015. our weighted average fee rates were 0.406 % and 0.426 % for the years ended december 31 , 2016 and 2015 , respectively . average assets in separately managed accounts decreased 6.0 % , to $

cash flows year ended december 31 , 2017 versus december 31 , 2016 cash increased $ 19.9 million to $ 63.4 million in 2017 compared to $ 43.5 million in 2016 . net cash provided by operating activities increased $ 12.7 million in 2017 to $ 67.7 million from $ 58.6 million in 2016 . the increase primarily reflects an increase in net income , changes in the levels of non-cash compensation , equity in the earnings of affiliates , net realized and unrealized gains from investments , as well as changes in operating assets and liabilities and working capital . net cash provided by investing activities was $ 0.5 million in 2017 compared to $ 0.2 million in 2016 . the $ 0.3 million increase was primarily due to a $ 1.1 million increase in proceeds from net sales of investments , partially offset by a $ 0.5 million increase in payments to related parties related primarily to loans made to employees . net cash used in financing activities decreased $ 2.4 million in 2017 to $ 48.0 million from $ 50.4 million in 2016 . this decrease is primarily due to a $ 1.6 million decrease in the repurchase and retirement of shares of class a common stock and class b units during 2017 and a $ 2.0 million decrease in net distributions from non-controlling interests , partially offset by a $ 0.9 million decrease in cash provided by option exercises . year ended december 31 , 2016 versus december 31 , 2015 cash increased $ 8.1 million to $ 43.5 million in 2016 compared to $ 35.4 million in 2015 . net cash provided by operating activities increased $ 1.2 million in 2016 to $ 58.6 million from $ 57.4 million in 2015 . the increase primarily reflects a change in the timing of year-end bonus payments to january of the subsequent year as well as an increase in net income driven by taxes , changes in the liability to selling and converting shareholders , and gains/ losses and other investment income .


 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.
     ```cash flows year ended december 31 , 2017 versus december 31 , 2016 cash increased $ 19.9 million to $ 63.4 million in 2017 compared to $ 43.5 million in 2016 . net cash provided by operating activities increased $ 12.7 million in 2017 to $ 67.7 million from $ 58.6 million in 2016 . the increase primarily reflects an increase in net income , changes in the levels of non-cash compensation , equity in the earnings of affiliates , net realized and unrealized gains from investments , as well as changes in operating assets and liabilities and working capital . net cash provided by investing activities was $ 0.5 million in 2017 compared to $ 0.2 million in 2016 . the $ 0.3 million increase was primarily due to a $ 1.1 million increase in proceeds from net sales of investments , partially offset by a $ 0.5 million increase in payments to related parties related primarily to loans made to employees . net cash used in financing activities decreased $ 2.4 million in 2017 to $ 48.0 million from $ 50.4 million in 2016 . this decrease is primarily due to a $ 1.6 million decrease in the repurchase and retirement of shares of class a common stock and class b units during 2017 and a $ 2.0 million decrease in net distributions from non-controlling interests , partially offset by a $ 0.9 million decrease in cash provided by option exercises . year ended december 31 , 2016 versus december 31 , 2015 cash increased $ 8.1 million to $ 43.5 million in 2016 compared to $ 35.4 million in 2015 . net cash provided by operating activities increased $ 1.2 million in 2016 to $ 58.6 million from $ 57.4 million in 2015 . the increase primarily reflects a change in the timing of year-end bonus payments to january of the subsequent year as well as an increase in net income driven by taxes , changes in the liability to selling and converting shareholders , and gains/ losses and other investment income .
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 Suspicious Activity Report : as adjusted , non-gaap diluted net income and non-gaap diluted earnings per share were $ 44.7 million and $ 0.63 , respectively , for the year ended december 31 , 2017 , and $ 31.4 million and $ 0.46 , respectively , for the year ended december 31 , 2016 , $ 34.5 million and $ 0.51 , respectively , for the year ended december 31 , 2015 . gaap and non-gaap net income for diluted earnings per share generally assumes all operating company membership units are converted into company stock at the beginning of the reporting period , and the resulting change to our gaap and non-gaap net income associated with our increased interest in the operating company is taxed at our historical effective tax rate , exclusive of the adjustments related to our tax receivable agreement and the associated liability to selling and converting shareholders , the adjustments related to the non-recurring charges recognized in operating expenses , and other adjustments as noted above . our effective tax rate , exclusive of these adjustments , was 36.7 % for the year ended december 31 , 2017 and approximately 36.8 % and 37.1 % for the years ended december 31 , 2016 and 2015 , respectively . see “ operating results — income tax expense/ ( benefit ) ” below . 27 a reconciliation of the non-gaap measures to the most comparable gaap measures is included below : replace_table_token_6_th 1 reflects the net impact of a change in the calculation of historical 754 step-ups and related deferred tax asset and corresponding liability to selling and converting shareholders recognized during the year-ended december 31 , 2017 as noted in the income tax expense/ ( benefit ) discussion below . revenue we generate revenue primarily from management fees and performance fees , which we collectively refer to as our advisory fees , by managing assets on behalf of our separately managed and sub-advised accounts , as well as our pzena funds . our advisory fee income is primarily based on our aum , as discussed below , and is recognized over the period in which investment management services are provided . following the preferred method identified in the revenue recognition topic of the financial accounting standards board accounting standards codification ( “ fasb asc ” ) , income from performance fees is recorded at the conclusion of the contractual performance period , when all contingencies are resolved . our advisory fees are primarily driven by the level of our aum . our aum increases or decreases with the net inflows or outflows of funds into our various investment strategies and with the investment performance thereof . in order to increase our aum and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients , and provide attractive returns over the long-term . the value and composition of our aum , and our ability to continue 28 to attract clients will depend on a variety of factors as described in “ item 1 — risk factors — risks related to our business — our primary source of revenue is derived from management fees , which are directly tied to our assets under management . fluctuations in aum therefore will directly impact our revenue . `` for our separately managed accounts , we are paid management fees according to a schedule , which varies by investment strategy . the substantial majority of these accounts pay us management fees pursuant to a schedule in which the rate we earn on the aum declines as the amount of aum increases . pursuant to our sub-investment advisory agreements with our clients and advisory agreements with pzena-branded funds , we are generally paid a management fee according to a schedule in which the rate we earn on the aum declines as the amount of aum increases . certain of these funds pay us fixed-rate management fees . due to the substantially larger account size of certain of these sub-advised accounts , the average advisory fees we earn on them , as a percentage of aum , are lower than the advisory fees we earn on our separately managed accounts . advisory fees we earn on separately managed accounts are generally based on the value of aum at a specific date on a quarterly basis . certain of our separately managed accounts , and all of our sub-advised accounts , are calculated based on the average of the monthly or daily market value . advisory fees are also generally adjusted for any cash flows into or out of a portfolio , where the cash flow represents greater than 10 % of the value of the portfolio . while a specific group of accounts may use the same fee rate , the calculation methodology may differ as described above . certain of our clients pay us performance fees according to the performance of their accounts relative to certain agreed-upon benchmarks , which results in a lower base fee , but allows for us to earn higher fees if the relevant investment strategy outperforms the agreed-upon benchmark . some performance-based fee arrangements include high-water mark provisions , which generally provide that if a client account underperforms relative to its performance target , it must gain back such underperformance before we can collect future performance-based fees . fulcrum fee arrangements related to one client relationship require a reduction in the base fee , or allow for a performance fee if the relevant investment strategy underperforms or outperforms , respectively , the agreed-upon benchmark . story_separator_special_tag assets in sub-advised accounts increased $ 2.2 billion , or 15.6 % , from $ 14.1 billion at december 31 , 2015 , due to $ 2.6 billion in gross inflows and $ 2.5 billion in market appreciation , partially offset by $ 2.9 billion in gross outflows . assets in pzena funds increased by $ 0.3 billion , or 33.3 % , from $ 0.9 billion at december 31 , 2015 as a result of $ 0.3 billion in gross inflows and $ 0.2 billion in market appreciation , partially offset by $ 0.2 billion in gross outflows . at december 31 , 2015 , we managed $ 11.0 billion in separately managed accounts , $ 14.1 billion in sub-advised accounts , and $ 0.9 billion in pzena funds , for a total of $ 26.0 billion in assets . for the year ended december 31 , 2015 , we experienced total gross outflows of $ 4.7 billion and market depreciation of $ 1.4 billion , which were partially offset by total gross inflows of $ 4.4 billion . assets in separately managed accounts decreased by $ 0.7 billion , or 6.0 % , from $ 11.7 billion at december 31 , 2014 due to $ 2.4 billion in gross outflows and $ 0.6 billion in market depreciation , partially offset by $ 2.3 billion in gross inflows . assets in sub-advised accounts decreased $ 0.9 billion , or 6.0 % , from $ 15.0 billion at december 31 , 2014 , due to $ 2.1 billion in gross outflows and $ 0.7 billion in market depreciation , partially offset by $ 1.9 billion in gross inflows . assets in pzena funds decreased by $ 0.1 billion , or 10.0 % , from $ 1.0 billion at december 31 , 2014 , as a result of $ 0.2 billion in gross outflows and $ 0.1 billion in market depreciation , partially offset by $ 0.2 billion in gross inflows . revenue our revenue from advisory fees earned on our separately managed accounts , sub-advised accounts and pzena funds for the three years ended december 31 , 2017 is described below : replace_table_token_12_th year ended december 31 , 2017 versus december 31 , 2016 our total revenue increased $ 33.0 million , or 30.4 % , to $ 141.3 million for the year ended december 31 , 2017 from $ 108.3 million for the year ended december 31 , 2016 . this change was driven by an increase in average assets during 2017 , as well as an increase in performance fees recognized during 2017. we recognized $ 3.2 million in performance fees during 2017 as compared to $ 0.2 million in performance fees recognized in 2016. in addition , we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2017 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum increased 26.6 % to $ 33.8 billion as of december 31 , 2017 from $ 26.7 billion as of december 31 , 2016 . our weighted average fee rates were 0.418 % and 0.406 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in separately managed accounts increased 24.5 % to $ 13.7 billion for the year ended december 31 , 2017 , from $ 11.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.556 % and 0.555 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in sub-advised accounts increased 27.4 % to $ 18.6 billion for the year ended december 31 , 2017 , from $ 14.6 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.295 % and 0.273 % for the years ended december 31 , 2017 and 2016 , respectively . the increase in weighted average fees in sub-advised accounts was due primarily to a increase in performance fees recognized in 2017 and the reduction of base fees related to the fulcrum fee arrangements of certain accounts related to one client relationship recognized in 2016. a reduction in 36 base fees was not recognized during 2017. average assets in pzena funds increased 50.0 % to $ 1.5 billion for the year ended december 31 , 2017 , from $ 1.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.679 % and 0.687 % for the years ended december 31 , 2017 and 2016 , respectively . year ended december 31 , 2016 versus december 31 , 2015 our total revenue decreased $ 8.3 million , or 7.1 % , to $ 108.3 million for the year ended december 31 , 2016 , from $ 116.6 million for the year ended december 31 , 2015 . this change was driven by a decrease in performance fees recognized during 2016 , a decrease in average assets , as well as a reduction in base fees associated with fulcrum fee arrangements . we recognized $ 0.2 million in performance fees during 2016 as compared to $ 4.5 million in performance fees recognized in 2015. we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2015 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum decreased 2.6 % to $ 26.7 billion as of december 31 , 2016 from $ 27.4 billion as of december 31 , 2015. our weighted average fee rates were 0.406 % and 0.426 % for the years ended december 31 , 2016 and 2015 , respectively . average assets in separately managed accounts decreased 6.0 % , to $

