{"url_path":"/sec/mgre/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosures About Market Risk","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-17","source_url":"https://www.sec.gov/Archives/edgar/data/1004434/0001628280-26-008665-index.html","accession_number":"0001628280-26-008665","cik":"0001004434","ticker":"AMG","issuer_name":"AFFILIATED MANAGERS GROUP, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1004434/0001628280-26-008665-index.html","primary_entity_key":"0001004434","primary_entity_name":"AFFILIATED MANAGERS GROUP, INC."},"word_count":592,"has_tables":true,"body_markdown":"Item 7A.Quantitative and Qualitative Disclosures About Market Risk\n\nAssets Under Management Market Price Risk\n\nConsolidated revenue and equity method revenue, net are derived primarily from asset-based fees that are typically\n\ndetermined as a percentage of the value of a client’s assets under management.  Such values are affected by changes in financial\n\nmarkets (including declines in the capital markets, fluctuations in foreign currency exchange rates, inflation rates or the yield\n\ncurve, and other market factors) and, accordingly, declines in the financial markets may negatively impact Consolidated\n\nrevenue and equity method revenue, net.\n\nAs of December 31, 2025, we estimate a proportional 1% change in the value of our assets under management would have\n\nresulted in a $17.2 million annualized change in asset-based fees in Consolidated revenue for our consolidated Affiliates and a\n\n$27.0 million annualized change in asset-based fees in equity method revenue, net for our Affiliates accounted for under the\n\nequity method.  This proportional increase or decrease excludes assets under management on which asset-based fees are\n\ncharged on committed capital.\n\nInterest Rate Risk\n\nWe have fixed rates of interest on our senior notes and junior subordinated notes.  While a change in market interest rates\n\nwould not affect the interest expense incurred on our fixed rate securities, such a change may affect the fair value of these\n\nsecurities.  We estimate that a 1% change in interest rates would have resulted in a $205.9 million net change in the fair value of\n\nour fixed rate securities as of December 31, 2025.  We pay a variable rate of interest on any outstanding obligations under our\n\nrevolver at specified rates, based either on an applicable term Secured Overnight Financing Rate (“SOFR”) plus a SOFR\n\nadjustment of 0.10% or prime rate, plus a marginal rate determined based on our credit rating.  As of December 31, 2025, we\n\nhad no outstanding borrowings under the revolver.\n\nForeign Currency Risk\n\nThe functional currency of most of our Affiliates is the U.S. dollar.  Certain of our Affiliates have the pound sterling,\n\nCanadian dollar, or the euro as their functional currency, and are, therefore, impacted by movements in pound sterling,\n\nCanadian dollar, and euro to U.S. dollar foreign currency exchange rates.  In addition, the valuations of our foreign Affiliates\n\nwith a non-U.S. dollar functional currency change based on fluctuations in foreign currency exchange rates, among other\n\nfactors.  Changes due to fluctuations in foreign currency exchange rates are recorded as a component of stockholders’ equity.\n\nTo illustrate the effect of possible changes in foreign currency exchange rates, we estimate a 1% change in the pound\n\nsterling, Canadian dollar, and euro to U.S. dollar exchange rates would have resulted in an $8.4 million, $1.9 million, and $4.8\n\nmillion change to stockholders’ equity, respectively, primarily based on the December 31, 2025 carrying value of Affiliates\n\nwhose functional currency is the pound sterling, Canadian dollar, or the euro.  For the year ended December 31, 2025, we\n\nestimate a 1% change in the pound sterling, Canadian dollar, and the euro to U.S. dollar exchange rates would have resulted in\n\n$0.8 million, $0.3 million, and $0.3 million in annual changes to Income before income taxes (controlling interest),\n\nrespectively.\n\nDerivative Risk\n\nFrom time to time, we and our Affiliates seek to offset exposure to changes in interest rates, foreign currency exchange\n\nrates, and markets by entering into derivative financial instruments.  There can be no assurance that our or our Affiliates’\n\nderivative financial instruments will meet their overall objective or that we or our Affiliates will be successful in entering into\n\nsuch instruments in the future.\n\n41\n\n[Table of Contents](#ibfa0590d77ac4199aa63edb4b8813f49_7)"}