Company: FRHC
Filing Date: 2025-06-13
Form Type: 10-K
Source: 0000924805-25-000012
Chunk: 2

Company: Freedom Holding Corp.
Filing Date: 2025-06-13
Form: 10-K
Item: Item 7A
Chunk 2
---
 investment is denominated in U.S. dollars but the investee primarily makes investments in foreign currencies. The fair values of these investments are subject to change at the spot foreign exchange rate between these currencies and our functional currency fluctuates. We attempt to manage the risk of loss inherent in our equity securities portfolio through diversification and by placing limits on individual and total equity instruments we hold. Reports on our equity portfolio are submitted to our management on a regular basis.

As of March 31, 2025, and 2024, our exposure to equity investments at fair value was $111.1 million and $126.1 million, respectively. Based on an analysis of the March 31, 2025 and 2024 (not including trading portfolio) balance sheets we estimate that a decrease of 10% in the equity price would have reduced the value of the equity securities or instruments we held by approximately $11.1 million and $12.6 million, respectively. 

Credit Risk

Credit risk refers to the risk of loss arising when a borrower or counterparty does not meet its financial obligations to us. We are exposed to credit risk through our products and assets, such as loans issued, marginal lending, derivatives, debt securities, reverse repurchase agreements, and trading account assets.

The table below presents the current credit ratings of issuers of securities in our proprietary portfolio as of March 31, 2025 and 2024:

86

Table of Contents

March 31, 2025>BB<BBNot ratedTotalNon-U.S. sovereign debt$1,257,719 $24,376 $355 $1,282,450 Corporate debt702,564 94,980 10,441 807,985 Corporate equity67,432 1,999 36,796 106,227 U.S. sovereign debt73,787 — — 73,787 Exchange traded notes1,326 — 3,511 4,837 Total trading securities$2,102,828 $121,355 $51,103 $2,275,286 Non-US sovereign debt207,659 572 — 208,231 Corporate debt231,770 11,533 427 243,730 US sovereign debt21,626 — — 21,626 Total available-for-sale securities, at fair value$461,055 $12,105 $427 $473,587 Non-US sovereign