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The value of our assets under management was $177.5 billion as of December 31, 2025.
−Removed: A 10% increase or decrease in the value of our assets under management, if proportionally distributed over all of our investment strategies, asset classes and client relationships, would cause an annualized increase or decrease in our gross management fee revenues of approximately $44.0 million based on our current weighted average fee rate of approximately 38 basis points.
+Added: A 10% increase or decrease in the value of our assets under management, if proportionally distributed over all of our investment strategies, asset classes and client relationships, would cause an annualized increase or decrease in our gross management fee revenues of approximately $61 million based on our effective weighted average fee rate of approximately 34 basis points in the most recent quarter.
Approximately $23 billion, or 13%, of our AUM, are in accounts subject to performance fees.
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Assuming the market change does not impact our relative performance, a 10% increase or decrease in AUM would have a $3 million impact to our gross performance fees based on our trailing twelve-month performance fees of $31 million as of December 31, 2025.
−Removed: The combined impact on our management fees and performance fees would have a direct impact on our earnings and result in an annual change of approximately $19 million in our post-tax economic net income, given our current cost structure and operating model.
+Added: The combined impact on our management fees and performance fees would have a direct impact on our earnings and result in an annual change of approximately $25 million in our post-tax economic net income.
+Added: The analysis is based on our operating model, effective cost and fee structure in the quarter ended December 31, 2025.
Equity market risk, interest rate risk, and foreign currency risk are the market risks that could have the greatest impact on our management fees, performance fees and our business profitability.
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Of these assets, the majority are in accounts for which performance fees are calculated based on investment return in excess of the relative benchmark returns.
−Removed: Assuming the market change does not impact our relative performance, a 10% change in equity markets would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income, given our current cost structure and operating model.
−Removed: • Foreign currency AUM includes equity and alternative assets denominated in foreign currencies.
−Removed: A 10% increase or decrease in foreign exchange rates against the U.S.
−Removed: dollar would cause our $94 billion of foreign currency denominated AUM to increase or decrease by $9 billion, resulting in a change in annualized management fee revenue of $37 million and an annual change in post-tax economic net income of $14 million, based on weighted average fees earned on our foreign currency denominated AUM of 39 basis points at the mix of strategies as of December 31, 2024.
+Added: Assuming the market change does not impact our relative performance, a 10% change in equity markets would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income.
+Added: The analysis is based on our operating model, effective cost and fee structure in the quarter ended December 31, 2025.
+Added: • Foreign currency AUM includes equity assets denominated in foreign currencies.
+Added: Assuming that all other factors remain constant, including client activity and asset flows and pricing, we estimate that a 10% increase or decrease in foreign exchange rates against the U.S.
+Added: dollar would cause our $125 billion of foreign currency denominated AUM to increase or decrease by $13 billion, resulting in a change in annualized management fee revenue of $48 million and an annual change in post-tax economic net income of $19 million, based on effective weighted average fees earned on our foreign currency denominated AUM of 39 basis points at the mix of strategies as of December 31, 2025.
Approximately $16 billion, or 13%, of our foreign currency denominated AUM are in accounts subject to performance fees.
Of these assets, the majority are in accounts for which performance fees are calculated based on investment return that differs from the relative benchmark returns.
−Removed: Assuming the market change does not impact our relative performance, a 10% change in foreign currency exchange rates would have an approximate incremental $2 million impact from performance fees on our post-tax economic net income, given our current cost structure and operating model.
+Added: Assuming the market change does not impact our relative performance, a 10% change in foreign currency exchange rates would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income.
+Added: The analysis is based on our operating model, effective cost and fee structure in the quarter ended December 31, 2025.
While the analysis above assumes that market changes occur in a uniform manner across the relevant portfolio, because of our declining fee rates for larger relationships and differences in our fee rates across asset classes, a change in the composition of our assets under management, in particular an increase in the proportion of our total assets under management attributable to strategies, clients or relationships with lower effective fee rates, could have a material negative impact on our overall weighted average fee rate.
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Interest Rate Risk
−Removed: We are exposed to interest rate risks primarily through borrowings under Acadian LLC’s revolving credit facility.
−Removed: Interest on borrowings under the revolving credit facility is based upon variable interest rates.
+Added: We are exposed to interest rate risks primarily through borrowings under Acadian LLC’s revolving credit facility and Delayed Draw Term Loan.
+Added: Interest on borrowings under the revolving credit facility and Delayed Draw Term Loan are based upon variable interest rates.
There was no balance drawn on our revolving credit facility as of December 31, 2025.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.