Q2 2026 AllianceBernstein Holding LP Earnings Call Transcript
Key Points
- AllianceBernstein Holding LP (AB) achieved a record level of assets under management (AUM), exceeding $905 billion, driven by market appreciation and strategic initiatives.
- The company returned to positive organic growth with firm-wide net flows of nearly $800 million, marking the strongest sales quarter in five years.
- AB reached its objective of $90 billion to $100 billion in private markets AUM more than a year ahead of its 2027 commitment.
- The firm's active ETF platform has grown significantly, with assets increasing 73% organically over the past year, reaching an annualized run rate of approximately $100 million in management fees.
- AB's adjusted earnings for the second quarter of 2026 were $0.82 per unit, representing an 8% increase year-over-year, with distributions growing uniformly with earnings per unit.
- Active equity outflows were nearly $11 billion, and taxable fixed income outflows exceeded $4 billion, primarily driven by retail redemptions in Asia Pacific.
- The company's equity performance struggled, with only 23%, 28%, and 31% of equity AUM outperforming over the one, three, and five-year periods, respectively.
- The fee rate was negatively affected by the timing of onboarding a $9 billion passive fixed income mandate, creating a temporary disconnect between asset growth and revenue realization.
- Despite strong sales momentum, active equity outflows persisted, driven by US large-cap growth redemptions across the US and Japan.
- The private markets performance fee guidance was reduced due to unrealized marks in the portfolio and tax events at the investor level.
Hello everyone and thank you for joining us. Welcome to the AllianceBernstein second quarter 2026 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, Head of Investor Relations for AB, Mr. Ioanis Jorgali. Please go ahead.
Good morning, everyone, and welcome to our second quarter 2026 earnings review. Today's conference call is being webcast and is accompanied by a slide presentation available in the Investor Relations section of our website at www.alliancebernstein.com. Joining us today to discuss the company's quarterly results are Seth Bernstein, our Chief Executive Officer; and Tom Simeone, our Chief Financial Officer.
Onur Erzan, our President, will join us for the question-and-answer session
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