Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 213

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 213
---
 to corporate bonds and structured credit products, a key component of Athene’s investment strategy is the opportunistic acquisition of investment funds with attractive risk and return profiles. Athene’s investment fund portfolio consists of funds or similar equity structures that employ various strategies including equity and credit funds. Athene has a strong preference for alternative investments that have some or all of the following characteristics, among others: (1) investments with credit- or debt-like characteristics (for example, a stipulated maturity and par value), or alternatively, investments with reduced volatility when compared to pure equity; or (2) investments that Athene believes have less downside risk.

Athene holds derivatives for economic hedging purposes to reduce its exposure to the cash flow variability of assets and liabilities, equity market risk, foreign exchange risk and interest rate risk. Athene’s primary use of derivative instruments relates to providing the income needed to fund the annual index credits on its FIA products. Athene primarily uses fixed indexed options to economically hedge indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specific market index. Athene also uses derivative instruments, such as forward contracts and swaps, to hedge foreign currency exposure resulting from foreign denominated assets and liabilities and to help manage its net floating rate position.

120

Net Invested Assets

The following summarizes Athene’s net invested assets:

March 31, 2025December 31, 2024(In millions, except percentages)Net Invested Asset Value1Percentage of TotalNet Invested Asset Value1Percentage of TotalCorporate$88,164 33.6 %$86,051 34.6 %CLO28,094 10.7 %27,698 11.2 %Credit116,258 44.3 %113,749 45.8 %CML29,359 11.2 %28,055 11.3 %RML31,291 11.9 %27,848 11.2 %RMBS8,036 3.1 %7,635 3.1 %CMBS9,150 3.5 %8,243 3.3 %Real estate77,836 29.7 %71,781 28.9 %ABS29,082 11.1 %28,670 11.5 %Alternative investments13,012 5.0 %