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Note 6 - Derivative Instruments

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 6 — Derivative Instruments

Derivative Instruments Used to Hedge Seeded Investment Products

We maintain an economic hedge program that uses derivative instruments to mitigate against market exposure of certain seeded investments by using index and commodity futures (“futures”), contracts for difference, credit default swaps and total return swaps. Certain foreign currency exposures associated with our seeded investment products are also hedged by using foreign currency forward contracts.

We were party to the following derivative instruments as of December 31, 2024 and 2023 (in millions):

		*Notional value*
		*December 31, 2024*				*December 31, 2023*
Futures and contracts for difference		$	789.0			$	1,018.0
Credit default swaps			148.5				199.7
Total return swaps			69.7				51.8
Foreign currency forward contracts			328.2				176.2

The derivative instruments are not designated as hedges for accounting purposes. Changes in fair value of the derivatives are recognized in investment gains (losses), net in our Consolidated Statements of Comprehensive Income. The changes in fair value of the derivative instruments for the years ended December 31, 2024, 2023 and 2022, are summarized as follows (in millions):

		*Year ended December 31,*
		*2024*				*2023*				*2022*
Futures and contracts for difference		$	(10.5	)		$	(7.0	)		$	40.8
Credit default swaps			(3.0	)			(6.5	)			3.7
Total return swaps			(9.3	)			(12.8	)			21.3
Foreign currency forward contracts			6.4				8.4				(9.6	)
Total gains (losses) from derivative instruments		$	(16.4	)		$	(17.9	)		$	56.2

Derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or in accounts payable and accrued liabilities in our Consolidated Balance Sheets. The derivative assets and liabilities as of December 31, 2024 and 2023, are summarized as follows (in millions):

		*Fair value*
		*December 31, 2024*				*December 31, 2023*
Derivative assets		$	8.8			$	1.8
Derivative liabilities			8.5				16.7

Derivative Instruments Used in Consolidated Seeded Investment Products

Certain of our consolidated seeded investment products use derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within other current assets or in accounts payable and accrued liabilities in our Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Consolidated Statements of Comprehensive Income.

Our consolidated seeded investment products were party to the following derivative instruments as of December 31, 2024 and 2023 (in millions):

		*Notional value*
		*December 31, 2024*				*December 31, 2023*
Futures and contracts for difference		$	160.5			$	1,555.1
Credit default swaps			4.3				13.2
Total return swaps			10.3				0.3
Interest rate swaps			13.9				2.2
Foreign currency forward contracts			196.6				135.3
Other			—				0.3

As of December 31, 2024 and 2023, the derivative assets and liabilities in our Consolidated Balance Sheets were insignificant.

Derivative Instruments — Foreign Currency Hedging Program

We maintain a foreign currency hedging program to take reasonable measures to minimize the income statement effects of foreign currency remeasurement of monetary balance sheet accounts. The program uses foreign currency forward contracts and swaps to achieve its objectives, and it is considered an economic hedge for accounting purposes.

The notional value of the foreign currency forward contracts and swaps as of December 31, 2024 and 2023, is summarized as follows (in millions):

		*Notional value*
		*December 31, 2024*				*December 31, 2023*
Foreign currency forward contracts and swaps		$	38.4			$	65.3

The derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or in accounts payable and accrued liabilities in our Consolidated Balance Sheets. As of December 31, 2024 and 2023, the derivative assets and liabilities in our Consolidated Balance Sheets were insignificant.

Changes in fair value of the derivatives are recognized in other non-operating income (expense), net in our Consolidated Statements of Comprehensive Income. Foreign currency remeasurement is also recognized in other non-operating income (expense), net in our Consolidated Statements of Comprehensive Income. For the years ended December 31, 2024, 2023 and 2022, the change in fair value of the foreign currency forward contracts and swaps was insignificant.