Risk Factors Update Summary

• There is a risk that artificial intelligence technologies may be misused, potentially jeopardizing confidential information and causing material financial losses.
• The company now reports discretionary AUM increased from $112 billion to $124 billion, reflecting growth. This change might result in enhanced investor confidence and potential revenue growth.
• In August 2023, President Biden signed an Executive Order prohibiting certain investments by U.S. persons in advanced technology sectors in China, increasing compliance burdens.
• Non-discretionary AUA has risen from $745 billion to $796 billion, indicating strong advisory performance. This change could lead to increased management fees and overall profitability.
• The SEC adopted new climate-disclosure rules mandating extensive reporting on climate-related data, which may incur significant additional compliance costs.
• The employee count has grown from approximately 600 to 700, enhancing operational capacity. This change may improve service delivery and client engagement.
• Many jurisdictions are taking aggressive enforcement actions regarding data privacy, leading to increased regulatory risks and potential monetary penalties.
• The company emphasizes the importance of data security, highlighting risks from breaches in technology networks. This change underscores the need for robust cybersecurity measures to protect sensitive information.
• The ongoing war between Russia and Ukraine has contributed to significant volatility in global financial markets, adversely impacting performance and fund results.
• The firm has committed to carbon neutrality since 2019, enhancing its sustainability profile. This change may attract environmentally conscious investors and improve corporate reputation.