Company: MGRE
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001004434-25-000010
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Company: AFFILIATED MANAGERS GROUP, INC.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7A
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Item 7A.Quantitative and Qualitative Disclosures About Market Risk

Assets Under Management Market Price Risk

Our Consolidated revenue and equity method revenue are derived primarily from asset-based fees that are typically 

determined as a percentage of the value of a client’s assets under management.  Such values are affected by changes in financial 

markets (including declines in the capital markets, fluctuations in foreign currency exchange rates, inflation rates or the yield 

curve, and other market factors) and, accordingly, declines in the financial markets may negatively impact our Consolidated 

revenue and equity method revenue. 

As of December 31, 2024, we estimate a proportional 1% change in the value of our assets under management would have 

resulted in a $15.9 million annualized change in asset-based fees in Consolidated revenue for our consolidated Affiliates and a 

$15.9 million annualized change in asset-based fees in equity method revenue for our Affiliates accounted for under the equity 

method.  This proportional increase or decrease excludes assets under management on which asset-based fees are charged on 

committed capital.

Interest Rate Risk

We have fixed rates of interest on our senior notes, junior subordinated notes, and junior convertible securities.  While a 

change in market interest rates would not affect the interest expense incurred on our fixed rate securities, such a change may 

affect the fair value of these securities.  We estimate that a 1% change in interest rates would have resulted in a $226.1 million 

net change in the fair value of our fixed rate securities as of December 31, 2024.  We pay a variable rate of interest on any 

outstanding obligations under our revolver at specified rates, based either on an applicable term Secured Overnight Financing 

Rate (“SOFR”) plus a SOFR adjustment of 0.10% or prime rate, plus a marginal rate determined based on our credit rating.  As 

of December 31, 2024, we had no outstanding borrowings under the revolver.

Foreign Currency Risk

The functional currency of most of our Affiliates is the U.S. dollar.  Certain of our Affiliates have the pound sterling, 

Canadian dollar, or the Euro as their functional currency, and are, therefore, impacted by movements in pound sterling, 

Canadian dollar, and Euro to U.S. dollar foreign currency exchange rates.  In addition, the valuations of our foreign Affiliates 

with a