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: Approximately 35% of our ENI cost structure is variable, representing variable compensation and Acadian key employee distributions.
+Added: Approximately 40% of our ENI cost structure is variable, representing variable compensation and Acadian LLC 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.
−Removed: 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.
+Added: 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 LLC key employee distributions in line with their formulaic calculations.
Any change in pre-tax profit is tax-affected to calculate profit after tax.
7 unchanged sentences
Impacts on our management and performance fees can be calculated based on the percentage of AUM constituting equity investments, or foreign currency denominated investments, respectively, multiplied by the relevant weighted average management fee and performance fee attributable to that asset class.
−Removed: • Our equity markets-based AUM includes U.S.
−Removed: equities (including small cap through large cap securities and substantially value or blended investment styles) and global/non-U.S.
−Removed: equities (including global, non-U.S.
−Removed: and emerging markets securities).
−Removed: A 10% increase or decrease in equity markets would cause our $101 billion of equity assets under management to increase or decrease by $10 billion, resulting in a change in annualized management fee revenue of $38 million and an annual change in post-tax economic net income of approximately $15 million, given our current cost structure, operating model, and weighted average equity fee rates of 38 basis points at the mix of strategies as of December 31, 2023.
+Added: • Our equity markets-based AUM includes U.S., global, non-U.S.
+Added: and emerging markets equities (including small cap through large cap securities).
+Added: A 10% increase or decrease in equity markets would cause our approximately $114 billion of long-only equity assets under management to increase or decrease by $11 billion, resulting in a change in annualized management fee revenue of $43 million and an annual change in post-tax economic net income of approximately $17 million, given our current cost structure, operating model, and weighted average equity fee rates of 38 basis points at the current mix of strategies as of December 31, 2024.
Approximately $18 billion, or 16%, of our equity markets-based AUM are in accounts subject to performance fees.
12 unchanged sentences
Interest Rate Risk
−Removed: We are exposed to interest rate risks primarily through borrowings under Acadian’s revolving credit facility.
+Added: We are exposed to interest rate risks primarily through borrowings under Acadian LLC’s revolving credit facility.
Interest on borrowings under the revolving credit facility is based upon variable interest rates.
3 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.