Fiscal period ending 2025-12-31 versus 2024-12-31
— view filing on EDGAR →
New disclosures across liquidity, competition, and governance collectively signal a meaningfully expanded risk profile. Counterparty and clearinghouse failure risks introduce material derivatives and collateral exposure not previously articulated, while newly named competitive pressures—fee compression, passive-product shift, and talent competition—sharpen the business model threat. Governance risks are further compounded by added investment systems vulnerabilities, regulatory fine exposure, and key-person dependency on investment performance.
2 company-specific
· 1 common-mode
Company-specific changes
Revised
Added specific competitive threats: fee compression, shift to passive products, asset manager competition, and talent competition. These represent newly articulated business risks.
We May Face Competition for Business Competitive pressures, based on a number of factors including service, product features, scale, price, commission structure, financial strength, investment…
Revised
Added investment systems risk, regulatory fines, client reimbursement obligations, and key personnel loss impact on investment performance and competitiveness.
Our Policies and Procedures May Be Insufficient to Protect Us From Operational Risks We may make errors in any of the large number of transactions we process through our complex administrative…
Also disclosed — common-mode (Debt leverage refinancing)
Debt leverage refinancing
New
New disclosure of counterparty, clearing broker, and central clearinghouse failure risks affecting derivatives hedging, collateral requirements, and liquidity—material operational and financial risk.
Table of Contents Derivatives Risks If our counterparties, clearing brokers or central clearinghouses fail or refuse to honor their obligations under our derivatives agreements, our risks may not be…