Q3 2024 AllianceBernstein Holding LP Earnings Call Transcript
Key Points
- AllianceBernstein Holding LP (AB) achieved positive net flows each quarter in 2024, surpassing $800 billion in assets under management.
- The company delivered its third consecutive quarter of organic growth, with active fixed income inflows totaling $6 billion.
- AB's private markets AUM reached $68 billion in the third quarter, up 11% year-over-year, driven by strong net fundings into alternative strategies.
- The firm's adjusted operating margin improved to 31.3%, up 330 basis points year-over-year, with further improvement expected in 2025.
- AB's fee rate stabilized, with base management fees growing in line with AUM, reflecting a supportive asset class and channel mix shift.
- Active equity outflows remained elevated, with $4.5 billion in outflows during the third quarter, primarily due to concentrated institutional redemptions.
- Institutional channel experienced outflows totaling $4.4 billion at a 5% annualized loss rate, driven by active equity strategy redemptions.
- The pipeline fee rate declined due to funding of higher fee alternative mandates and lower fee systematic fixed income mandates.
- Private wealth posted only modest inflows in the third quarter, with increased sales momentum offset by increased redemptions.
- Performance fees for the third quarter declined by $2 million from the prior year period, with expectations for lower growth in a declining interest rate environment.
Ladies and gentlemen, thank you for standing by and welcome to the AllianceBernstein third quarter, 2024 earnings review. (Operator Instructions)
As a reminder, this conference is being recorded and will be available for replay on our website shortly after the conclusion of this call.
I would now like to turn the conference over to the host for this call, Vice President of Investor Relations for AB Mr. Ioanis Jorgali. Please go ahead.
Good morning, everyone and welcome to our third quarter, 2024 earnings review. This conference call is being webcast and accompanied by a slide presentation that's posted in the investor relations section of our website www.alliancebernstein.com. With us today to discuss, the company's results are Seth Bernstein, President and CEO; and Jackie Marks, CFO; Onur Erzan, Head of Global Client Group and Private Wealth; and Matt Bass, Head of Private Alternatives will join us for
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