12 unchanged sentences
Our profit sharing economic structure, described more fully in “Management’s Discussion and Analysis of Financial Condition and Results of Operation—The Economics of Our Business,” results in a sharing of market risk between us and our employees.
−Removed: Almost 40% of our ENI cost structure is variable, representing variable compensation and Acadian key employee distributions.
+Added: Approximately 35% of our ENI cost structure is variable, representing variable compensation and Acadian key employee distributions.
These variable expenses generally are linked in a formulaic manner to the profitability of the business after covering operating expenses, which include base compensation and benefits, general and administrative expenses, and depreciation and amortization.
4 unchanged sentences
Approximately $11.9 billion, or 13%, of our AUM, are in accounts subject to performance fees.
−Removed: Of these assets, the majority are in accounts for which performance fees, or management fee adjustments, are calculated based on investment return that differs from the relative benchmark returns.
+Added: 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.
Assuming the market change does not impact our relative performance, a 10% increase or decrease in AUM would have a $4.9 million impact to our gross performance fees based on our trailing twelve month performance fees of $49.4 million from the Quant & Solutions segment as of December 31, 2022.
14 unchanged sentences
Approximately $10.1 billion, or 14%, of our foreign currency denominated AUM are in accounts subject to performance fees.
−Removed: 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.
+Added: Of these assets, the majority are in accounts for which performance fees, or management fee adjustments, are calculated based on investment return that differs from the relative benchmark returns.
Assuming the market change does not impact our relative performance, a 10% change in foreign currency exchange rates would have an approximate incremental $0.7 million impact from performance fees on our post-tax economic net income, given our current cost structure and operating model.
6 unchanged sentences
Interest on borrowings under the revolving credit facility is based upon variable interest rates.
−Removed: Borrowings under our revolving credit facility were $0.0 million as of December 31, 2021.
+Added: There was no balance drawn on our revolving credit facility as of December 31, 2022.
We currently do not hedge against this interest rate risk.
1 unchanged sentence
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.