9 unchanged sentences
The impact that market changes have on performance fee eligible accounts varies due to high-water marks and other measurement hurdles which are not factored in this analysis.
−Removed: Changes in performance fees revenues could be significant in each period.
+Added: Changes in performance fee revenues could be significant in each period.
The basis for the analysis is performance fees earned for the twelve months ended December 31, 2023.
3 unchanged sentences
In modeling the impact of market risk, we assume that these operating expenses remain unchanged, but the resulting impact on profit driven by increases or decreases in revenue will change variable compensation and Acadian key employee distributions in line with their formulaic calculations.
−Removed: Any change in pre-tax profit is tax-effected at our statutory combined state and federal rate of approximately 27.3% to calculate profit after tax.
+Added: Any change in pre-tax profit is tax-affected to calculate profit after tax.
The value of our assets under management was $103.7 billion as of December 31, 2023.
2 unchanged sentences
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% 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.
+Added: Assuming the market change does not impact our relative performance, a 10% increase or decrease in AUM would have a $5 million impact to our gross performance fees based on our trailing twelve month performance fees of $50 million as of December 31, 2023.
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 $17 million in our post-tax economic net income, given our current cost structure and operating model.
9 unchanged sentences
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 instruments denominated in foreign currencies.
+Added: • Foreign currency AUM includes equity and alternative assets denominated in foreign currencies.
A 10% increase or decrease in foreign exchange rates against the U.S.
1 unchanged sentence
Approximately $12 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, 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% change in foreign currency exchange rates 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.
4 unchanged sentences
Interest Rate Risk
−Removed: We are exposed to interest rate risks primarily through borrowings under our revolving credit facility.
+Added: We are exposed to interest rate risks primarily through borrowings under Acadian’s revolving credit facility.
Interest on borrowings under the revolving credit facility is based upon variable interest rates.
There was no balance drawn on our revolving credit facility as of December 31, 2023.
−Removed: We currently do not hedge against this interest rate risk.
−Removed: As of December 31, 2022, a hypothetical 10% change in interest rates would have no material impact to our interest expense during the twelve months ended December 31, 2022.
+Added: We currently do not hedge against interest rate risk.
+Added: As of December 31, 2023, a hypothetical 10% change in interest rates would have resulted in an immaterial change to our interest expense during the twelve months ended December 31, 2023.
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.