AB - Earnings call transcript Q4 2020 | AllianceBernstein Holding L.P.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by and welcome to the AllianceBernstein Fourth Quarter 2020 Earnings Review. At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session and I will give you instructions on how to ask questions at that time.

As a reminder, this conference is being recorded and will be available for replay for one week. I would now like to turn the conference over to the host for this call, Head of Investor Relations for AB, Mr. Griffin. Mark ahead. go Please

Mark Griffin

in site, Burke, our President Good www.alliancebernstein.com. earnings after and is review. by join for that's our Dibadj, COO, and and present will our and Natalia. section Bernstein, and fourth questions Finance being to quarter accompanied will posted presentation of slide Strategy XXXX This Seth prepared a our Investor morning Web you, Relations welcome of everyone our webcast the CEO; Ali Thank our conference Head results. remarks. Kate us call

and information to regarding Some present of the we'll SEC today regulations is and forward-looking subject rules certain disclosure.

I'd presentation. So language our Harbor Safe out to like the of on Slide X point

XX-Q, which filed morning. also management only forum. Regulation community this find may we FD, Safe Under public a can investment questions from in the our nature XXXX of the in material address language earlier You our Harbor MD&A of

ask during all this So questions call. such please

it Now, over turn I'll to Seth.

Seth Bernstein

you today. in for scale. both Good unparalleled morning joining scope challenges all and XXXX of to unexpected us thank and face us forced

that our and volatile with an other. organization invested depressed our when health proud stronger of dynamic safety us subsequent as shaped and first the the be market even we than any fully civil of year started and their unrest initial continued AllianceBernstein, acted at employees, emerged and reaction from ensure the year. needs conditions. to We to clients activity learned these the enabling impact challenges, unlike reverberate While onset to say COVID-XX’s and to we economic the today, I'm grew through

presence in and being and committee in Commercial we corporate initiatives focus racial key CLO and In the Debt capabilities to and strength and leadership our the all ESG to responsibility, office several stepped Board communities broadening in which building partnership up of Asia improving research, our prestigious track to XXXX Real with the including initiating which onshore multi-asset European our new Management products, a progress launching commitment We well on national health invest operating made Best six both our new platforms, which we’ve with continuing rooted our Asset growth practicing executing while headquarters we six in to awards fundamental in also equity, XXXX, building ESG commitments and our quarter, distinct opening are earnings our and China Estate adopted Asian and remains and XXXX. Equitable, Best, modestly our in next in private and true inclusion in and recently footprint diversity accretive on our expanding alternatives of part. was relocation strategic meaningfully in received further

can't idiosyncratic that Our long-term investment solid performance be talented to with teams continuing our replicated. returns generate remained

For organic of to expected the growth margin year, our XXXX of growth meet active X% target our to unitholders. redemptions margins operating XX% and XX%. We AXA net of posted distributions both earnings in delivered we while expanding adjusted

XX% of were with billion Slide Fourth sales the active to equities growing the were up quarter active a of XX% in private significant also performance. billion shunned year year over We gross sales gross organic part with shorter generated over Year-end on sales Fourth wealth. AXA wealth, year billion in X. its flight firm-wide and outflows and X.X gross of as fixed safety driven strongest X% offset were of trends. year-over-year, reflected were outflows reflecting outflows across by inflows of channel. billion, income by X.X quarter strongest by decade. X% [ph], Buoyed term the by in redemptions, equities of X.X a flow and sales AXA increased X.X institutional X billion growth growth with its XX% billion strongest billion by AXA X net channels. or AXA active the net quarterly here and experienced in versus inflows ex active excluding prior up redemptions. wealth. excluding billion, year, inflows decade by offset and annualized. increased billion to year posted billion growth XX% munis up annualized year-over-year the net investment or with year. growth strengthened gross active posted and redemptions, sequentially, all X.X by strongest of billion, firm-wide strong XX.X from inflows average excluding net our In from net Retail inflows a flow into overview Full quarter. XXX year retail shows reflected XXXX three net inflows XX.X X.X a Slide a the of broad-based Outflows firm-wide increased private volatility billion, get strong of firm-wide XXX rate. a of billion. net productivity billion and ever, institutional expected assets over by investors inflows active to Institutional net Fourth active billion, in in retail starting decade, specifics, strong sales X.X year by XX% grew equities private driven outflows. sales year a active net redemptions. Slide Net outflows XXX of Let's full had passive gains. organic Private active wealth reflected X Full year. finish inflows were its the our strongest quarter annual billion Retail in X both offset offset in under in weaker sales net since trends represented passive rate. XX.X prior sales management while redemptions, AUM X% X% Institutional by excluding a AXA X growth shows ago,

year market and from astonishing March today of central which banks the following April and massive markets. memory on today. beginning performance, stunning policy to turn X. for financial a was Slide seems a investment Clearly, distant and to coordinated continues turmoil stimulus support, The of monetary XXXX let's global fiscal provision be Now

over well market our advantage Our income up In benefited again in quarter a with up U.S. and environment. the XX% yield the recovery assets can versus teams In X.X%, plus quarter, as assets the and X.X%. our yield global of of On percentage risk outperformed European risk-on a five-year U.S. X.X%, to sectors markets the ensuing a high three-year outperformed in fourth and positioning volatile positioned continued returns corporates assets. emerging one-year the governments up to that take high once and strengthened performance in which X.X% fixed credit responded fixed the the returned period. we're period all multi-sector improved over products. to government, XX% improve minus XX% healthy of municipal from outperformed Credit excess up posting outperforming X%, basis, income,

Our XX-year flagship percentile ending first portfolio recovery peer and five-year in three-year months in period. difficult quarter, period periods, second over its group over appendix. remained yield it X Xth as was performance of for over high global in XX% top the X, remains XX% American of solid quartile and in these continued quartile and outperformed Long-term percentile Morningstar following the the periods, the the placing its the the and of XXth strong the income nine Slide as equity December. quarter, a fourth XX assets for shown on the outperformed

XX% most stocks the of the and As reflecting one-year benchmarks. mega-cap period, top five weightings certain outperformed, outsized recent assets of the

broadened our outperforming are cyclical delivered prominent peers beta in momentum quarter value-leading December. quarter, environment, In the we last quarter in growth. caps came considerably which XX% portfolios with to stocks factor small in The noted market we by sensitive. U.S. this and As November up vogue for fourth back in these into value as value the risks and remain

should participate offering ranges. and diverse is across to broaden styles Our capitalization equity markets continue positioned to

Moving full due record while our of the XX% robust billion. quarter redemptions to saw client industry-wide sales up first active declined beginning March, off to the X% X. year-over-year. Despite XXXX with XX% on we doubled, banner sell sales versus U.S. for up by year in generated billion, net inflows Japan a were experiencing X.X retail XXXX. and on sales Japan, Slide ex up Asia, XX retail channels,

shown average headwinds. over on left XXXX fourth our We year four growth. equity X% was in last the active As of and in delivered chart, on unrelenting X% the the consecutive industry XXXX upper of years organic growth face

income multi-asset. retail Our been sales XX% with XX% is flow and Asia, $X than with EMEA have of across and XXXX, on it ex America XX strong geography; in XX% posted now as products balanced is in rounding Alts our U.S. including bottom respectively. We funds has By of more equity offering Latin now asset very XX%. XX out right. XX% represents the billion years each, the our largest Japan, classes Japan the contributing offering. fixed and and and of shown sales, most of balanced rankings Several

X. discuss Slide XX.X Now XX% institutional I'll Full decade. were highest the year over level in of year-over-year, billion gross on up sales a

sales year-over-year. we generated grew value. were XXX% decade. organically led planned sales of now of billion flows Equity strategic debt. past over mortgage quarters. equity the greater and net the concentrated by income X.X core, active accelerated Active small were for sales equity flows a XX% up net XX.X in led robust, posted in by international driven securitized also cap, seven X the to year Excluding AXA redemptions, international We’ve eight or level and highest inflows. than core billion growth which Fixed billion U.S. by global Full XXXX by

CLO, extends from quarter alternatives, launched Debt million vol capabilities the come. flows yield Commercial to alternatives. low diversifying strong the our funded and enhancing sizeable hopefully of many $XXX by to leveraging a also investment first supported platform they as China Equitable. European platform value from were and our In while our Real with see a This total We commitment have had also first We excited Estate Equitable closed return. relationship we geographic in offering,

grown for Our X.X purpose XX% now focused portfolios ESG up year-over-year. billion, have

have see to development. products consultants investors global continue interest strong more We in ESG and focused from in and several

Managed recently by Green innovative Volatility Fund Investment finalist investor names most UK-based awards. Our Week, investing awarded launch had was we three by their in and XXXX ESG Equities

pipeline mandate. additions health billion in X.X European during Real U.S. Notable a fundings several quarter, sizable XX.X $X billion million added Estate at include was global X.X and reflecting pipeline in quarter. end, institutional in our quarter MBS pipeline in the Fund, value, in Our XXX global credit, Debt XXX billion million the of billion and XXX agency additions fourth We care. including Commercial million

fourth full by XX. top The quarter decade. and our were left and to since private outflows single the the increased advisor year. in Moving of highs management Full financial in Full up all-time wealth crisis. billion. for reflected the billion of shows outflows before strategy seen approached a sales over for the Redemptions abated early XX graph net on year XX XXXX, improvement a up in to gross XX% year-over-year related XX% Slide but customer billion Productivity flight X productivity, last highest our in levels strong meaningfully year were with improved performance. partially safety

here, activity across close broader is we which client thawing leading is up acquired an to $X in XXXX. AUM raised XX% saw long/short We the in billion bodes M&A in we As evidence prior million to number Asturias, transactions, strategy and including this from a fundings. in that in uptick alternatives channel well business XXX of for in strategies, impact Meaning the TMT XXXX different over the year. now early

including XXX strategies AUM grew And our trading with harvesting in managed the as we've planned XX% We the to client additional equity in ESG billion tax-loss XX. market periods. to product increase volatility product in particularly both the and volumes, compared in strong year. for in the in Bernstein AUM finish growth where drove wealth pleased proprietary full prior the for and quarter X.X up the Slide I'll million fourth quarter investments. full fourth in an India, for launches XXXX with overview year by Research’s term. with see focused year focused Asia, the made X% our surpassed Elevated Revenues XX% separately sequentially. increased near last sell-side were with for on recently business Our global private XX%

Our also strong growth. posted U.S. business

primarily management long volatility early the year themes, the global on market Research the published climate full business of sector. valuable research reports core to during secular While equity assets income stemming of persist Highlights term. expect webinar exploring proprietary XX. in from XXXX, nearly asset Bernstein would not last our years. We fundamental the In XX% are hedge the provided research. remained. shown outline global hosted extreme three XX% over a Slide up we are in ESG approach challenges COVID-XX ESG-related year's volatility to a for embedded of evaluating a to fixed our and XXXX, series, into bottom business impact our We XXX our of global accomplishments authored change our assets each collaboration over outperforming

continue organically remarkable traction by return respectively. equities, We grew as in delivering institutional to XX%, streams and retail show differentiated X% and active

the Our quickly growing AUM year XX.X in retail drove ESG with is up redemptions. at up full in AXA and billion year We XX% inflows offering XXXX. institutional, overcoming active end, both

of equity grow alternatives. are well CLO XXXX. at fee multi-asset more a Commercial as as year and and suite to institutional alternative fourth billion come Our Estate multi-asset mix businesses, offerings, we including over six our XX.X to our launch base of XX% continue and active Debt has European expected strategies pipeline in of a end of with and And Real the quarter

We margins. business incremental are committed to to deliver managing strong our operating

Our XX.X% distributions of versus up prior up operating basis XX% XXX in year. the adjusted earnings year-over-year full full year unitholder year was margin with points

Ali walk the to through Dibadj financials. turn it over I'll Now, to

Ali Dibadj

Thanks, Seth.

prior on of Let's XX.X% $XXX basis XX% revenues net Fourth by $X.XX the increased income increased margin GAAP Slide quarter of year GAAP increased by and of in $X.X XX% X% points. increased of the start operating quarter EPU with income billion GAAP million period, the statement XXX year-over-year. operating XX. from

increased operating revenues of of million points. year-over-year. of XX.X% For by billion X%, margin full $XXX and of increased year, Full the EPU by GAAP GAAP basis increased year XX% XX% income $X.XX rose XXX operating net $X.X

results, my which that focus base our to as our not distribution I'll items and a always, adjusted adjusted our on addition remove GAAP unitholders on are for considered part As in provide remarks operating here certain from we business. results, of our effect the not our substitute core of which to We results.

of in appendix, and reconciliation Our GAAP to and are press standard adjusted results XX-K. GAAP reporting release our presentation

financials our $XXX $XXX $X.XX servicing stronger on distribute income operating the per XXX adjusted with expenses well XX% for operating $X.XX by year's quarter of million We fees margin included unitholders will up XX% lower unit, performance are higher revenues, XX.X% G&A increased X%, quarter. to coupled Our and basis to XX. of lower last earned by as Slide revenues promotion points. as Fourth increased million increased by and Research the and base as compared and and Higher fourth drove Bernstein results. of

moderated year fees income full rate X% full Beginning channels in and with time and Net on increased X% $XXX may year, believe previously declined although XX.X%, of For last average had on what by skew Fourth periods. from items we Bernstein increased X.X fourth is middle reflecting from as million fees basis you fourth to the margin statement told base and by points million XX.X quarter target for in and Arya these for This fee large margin quarter. of basis we fees Research the performance XX% basis the to was sequentially increased fees averages, growth And time quarter quarter year that year business the all drove offset and the X% higher. of points our that $XX and Higher revenues prior increased in Services year U.S. prior servicing pipeline expenses more grinding given Slide and rose three may line revenues our volatile into continue year prior multi-manager to and our $X.XX. equity by to our the long/short be same trend Adjusted basis platform, which our increased be the of increased to XXXX lower with to portfolio X% operating million the Arya higher in compared and our the $X for distribution prior X.X mandates higher fee points earned long-term billion, million. $XXX year’s X% the performance private meeting revenues. for XXX earned income results. year year-over-year AUM the revenues XX%. platform. million quarter adjusted over EPU fee quarter adjusted fourth $XX $X.XX due fourth million across earned rate rates. strong period Full performance stronger XX% quarter to million fees The to operating the operating lower should performance year-over-year. $X promotion points million by detail Base for earned and $XX delve increased $XXX the G&A We versus in XX. combined the quarter. increases Partners, to period, in the strength fees performance of $X market same concentrated lending stated

are a XX%, X% client U.S. in increased the from and has U.S. revenues and in the Services given among and respectively, year industry. by established the believe performed year in for leading quarter periods, geopolitical activity higher Arya same in platforms driven itself We election the fluctuations. full prior markets primarily Bernstein trading the and pandemic, very the proud of from Fourth the and volatility Asia challenging it multi-manager how year Research

year contribution for fourth the the million the period. prior related revenues the continues Autonomous, while primarily meet capital from losses Autonomous million Research Excluding in year, compared seed incurred investment full increased objectives. gains and as in Bernstein to $X its of for quarter full to XX% the $X investment We

billion $X.X travel, more XX% costs increased Total entertainment from benefit expenses. expense to performance expense million compensation primarily I'll COVID prior just shortly. compensation increased due higher total pandemic quarter, and year-over-year. for the provide due in adjusted by reflecting to X% of fee the increased of of $XXX expense quarter year meeting year, operating All-in, benefits to the driven the operating which lower incentive higher fourth fourth detail Moving revenue. Full our X% and

For was quarter incentive year the XX.X% higher XX.X%, of XXXX driven ratio year what the higher full year, last with adjusted prior quarter. flat compensation revenues again, compensation X%, and said XX.X% Full associated line prior year period. the with for primarily by Compensation compensation increased was versus in from performance had in fees. fourth and net benefits we the

in accrue in the to moves if throughout accordingly compensation performance on piece lower expected more ratio comp in due to conditions, year ratio fringe and conditions and XXXX, ramp year have the more drive Promotion may market pandemic. up meeting to the fourth the post-COVID right fees best this Given remain with our change. only owing downward clarity you business may servicing given quarter that declined expect and we of year full the to the costs, current not T&E plan at our first COVID-XX of adjust lower XX% become To the option XX.X% a for XX% benefits quarter is comp bigger estimate market costs than a and market it ratio, up, conditions this the it uncertain. should offer now and

million year quarter Although the related reduction COVID that full we $XX an year versus the for $XX the for fourth expenses about these to exercise, and be million prior estimate periods. about imperfect in

spend periods. prior fourth execution expect seeing expenses are to both Going footprint trading as G&A due the as Research these Burstein global Trade full versus would low be higher year XXXX promotion periods. we expenses and rose Asia. rose And of once X% in to the given efficiencies, client servicing forward, some realize for the we return declined comparison quarter in volumes portion we of same year regions, anywhere in levels X% subside. the and such not strive to ongoing our pandemic some while costs

in third was full For prior fees. amortization and quarter versus period, XXXX the million Fourth of data of partially both quarterly as fourth fees operating years professional X% market full expense $X higher and market Fourth Intangible quarter incremental XXX in million quarter and year our prior ago income related declined was operating the year year expenses $XXX compared occupancy the associated by fourth up driven million offset points of increased as offset margin the was services services to the low quarter quarter, were the year of XX increases. lower operating XX.X% acquisition operating reflecting period. professional by of as $XXX XX% ended with data basis our outpaced XX% fourth technology The expenses. by year-on-year, increase income expenses, leverage quarter XXXX. revenue and growth higher margin charge partially The Bernstein technology a of business.

full XXXX basis XXX Our operating year XXXX. XX.X% margin from of increased points

XXXX persist as previously related are expect pleased we target plan our to adjusted COVID would of XX%, the target operating not a While expense pandemic have margin communicated XXXX once on we margin do We majority met mentioned, the subsides. setting I not savings of to new forward. going

We to not XX% year continue margin an average time. XX%, of manage will, business on to however, to necessarily but the over incremental every

charges our presentation, net expenses full part are to core the related As certain estate and in adjusted which earnings of $X items below quarter, the fourth appendix million and of adjusted In business was impact year excludes related contingent GAAP due acquisition earnings our operations. real fourth the quarter earnings not operating operating outlined of and payments.

year operating contingent effective higher GAAP estate full L.P. related tax to of as due per XXXX X%, the acquisition the AllianceBernstein $XX impact adjusted or rate real payments. was income For $X.XX The net EPU million about full offset for than favorable year, by was credits, expected.

items related expect Autonomous update corporate I'll an the finish with rate above, relocation an on our X.X% for or quarter first XXXX anticipated given is Nashville. of one-time to to planned effective tax approximately this resulting acquisition. to exceed our slightly X% at we from to X%, headquarters forward, Going

going relocation well. very is Our

year very two-thirds our way of proud such Our employees, during to employees target very end, headquarter Nashville-based of we progress had for year X,XXX. be city. should XXX At of a nearly the people Nashville and the of challenging our

year, in fourth of which the that took new earlier reduced pandemic We're move quarter. related subsides. the XXXX, move building of when construction headquarters months four the expense of possession for COVID in the to into our delays employees the new building we Following planning

the totaled net relocation and related million quarter, our million to costs or in $X $X income, the EPU. to increase estimated offset compensation purchase of occupancy costs. $X $XX resulting operating increased million, fourth For $X a a headquarters $X net expense of transaction Nashville net $X.XX million, million million approximately savings in corporate accretion by is related Of

year than approximately the For net $XX XXXX, the $X full occupancy million, of $X unit. costs. transition expense savings of by in million $XX costs income, less savings increased per compensation for than greater slightly million $XX contribution resulting offset is $X $X.XX operating increase million million of to Of were net a related million, of

per before accretion thereafter. around XXXX XXXX range We million in last unit we now remarks prior that, expect our I'll it we above of million. take Cumulative $XXX to million $XXX prior of through savings $XX $XXX be million. to the estimate million now over, similar For back million million, period of is to With over once to to your year. $XXX this than will per $XX are to each upper be questions. period annual year to turn approximately of estimated now is our which expense of $XXX million some end million which transition estimate $X.XX XXXX, ongoing $XXX savings closing $XXX be $XX million to less Seth and transition to million $XX for increasing Cumulative the million, toward the are estimated beginning estimate costs, in $XXX began XXXX,

Seth Bernstein

Thank you, Ali.

XX. Slide to Turning

reflect previously XXXX continue good progress we dimensions on we’ve outlined. the as focus Our to results

ex based growth, we investment differentiated active Firstly, drove on organic performance. outflows, AXA X% the

the fee X% including five equities of of market. CLO last accelerating years. into European the our both Commercial organic suite in active growth Estate entry the We alternatives, expanded Over we've and market average generated Real Debt higher recent years, with active

interest growing their longer continue enjoy strategies. given future alternative Equitable We mutual for strong these our growth in from enhancing plans, support to yield and dated invaluable

strong While restrictions, was to XX margins COVID of spending G&A in travel due than less incremental related drove growth meeting and reduced with expanding XXXX margin year-over-year X%. we

a in With tax durably And low keep that, your We'll take yield XXXX. on we're a rate. you we're have low pleased we robust on X% a a progress a As questions. full unit year, a to these of updated $X.XX distribution initiatives partnership, for of rate further per environment. throughout paying

Operator

Instructions]. [Operator

Your Mike first ahead. response Please from go is Carrier.

Mike Carrier

and for questions. institutional great. Obviously in drove The the and Curious maybe the pipeline thanks a look feel the was if unusual those there just there if channels, And morning first the any ahead more that quarter? in probably outflows in weaker. Good the recent see was more periods? guess seasonality taking fourth trending you bit I then in importantly, while flows private flows. what on how retail anything

Seth Bernstein

the questions. Hi, Seth. for you Thank Mike. It’s

a source there less of but real seasonal. Japan. was it them. flows in whether positive rates a has clients’ forward, money better with retail dollar much highlighting are for fixed been it's have has generally, more we've on, of done in interest income than think less we also earlier is I whether With respect But have Asia Asia, as would going balance, our I of the for higher say, in in historical we particular, non-Japan, of periods the in equity been growth to the particularly expectation been onshore in bid which interest have done weakness, better redemptions, equities, because there competing we issues

for And stronger had in much pretty been us actually it's there. balanced U.S. story the results we've So a

helped that's in offset So retail.

a idiosyncratic the services to that year for back They that underperformed. number to services have switching us, private performance. over frankly in issues on the client, channel had Just earlier were I think there that specifically they used of were underperforming clawed more

trend. abated a in we're see. we'll the and part favorable, bit for outflows change the So have That's of a most seeing but

there's when rates around higher. more and you fixed becomes frankly a of as confidence until lot think U.S. and I rates, So as rise, income the appeal know,

to if As be would yesterday, it [ph] me tenure someone we said great got XXX to quickly.

watching as be the market I just going to think we're evolves.

Mike Carrier

you great. the Okay, just around somewhere grew like non-comp historically, then, Ali, G&A expenses, on inflation. And guys

that million so, see, And do of changes investments So that are of do maybe if in kind kind terms or term? longer it you like XX the think then Meaning, post level run want what same to you just new reduce COVID of some And normalizes roughly COVID? that behavior rate was outlook in any are needed? is said that that the the one, wasn't I sure 'XX? if there just expect in over can you costs,

Ali Dibadj

Mike. Yes. Ali. Thanks, It’s

step. by step it taking So

we non-profit First, continue will about be because we'll our expenses line with expenses, to it of something in up to there to grow do before. and But that talked a ramp expect we've of in terms occupancy and Nashville, manage in so. inflation that that's

plus at how it, headquarters a given we and the bit and build given that is about hopefully sort that continue we'll little year of to took the of inflation occupancy I think So occupy out this it are and to we of end But guidance. before want that course invest major within the sure, going but at year. no for what all. area over that for to There in we're that handle change places we said last

COVID you're the In terms savings, of correct. yes,

think it ain't math, the in what So perfect, impact our XXXX. of estimate million, we rough was but $XX is

already are some ramp of back We up. that seeing

lower, seeing we're as some those our lower, exactly that Asia, you all subsides, the things ramp going much well face driven thinking don't more T&R all. for right, of we lot as going meet by then happen. institution, pandemic of we being about get to of that meetings when up. other will back differently. more that's that's we in face face, obviously the at hope example. was being ramp clients we we're get to face anticipate But I to global to types how that and a And just that get we meet So, example, as from that Look, hubs happen to expenses We're a things. wouldn't each of back And do up to certainly to know, majority and an save somewhat doing that

Mike Carrier

Got it.

lot. makes sense. a Thanks Okay,

Operator

Thank you.

go Siegenthaler. Craig from is ahead. response Your Please

Craig Siegenthaler

hear Thanks. Good you morning, everyone. Can guys me?

Seth Bernstein

Craig. We can hear Yes, you.

Craig Siegenthaler

Can private Equitable. at portfolio? future your help start And you size I to you what AB the remind enhance Alton to also us us want your opportunity with the morning. All mix is with right. now? the AUM they partnership into Good current to as credit rotation of Equitable strategic potential can from look product

Seth Bernstein

and critical, helping they've AXA, Look, us know, in our you businesses. absolutely facilitate Sure. development before the new as of them been

So the really in in the of Commercial just CLO have investor European recruited, then last million year, just business And $XXX launched that it we which was we both deal. group, transactions. they're the Estate October, Real those formed cornerstone a

plans been really growth So they critical work with. easy very have and partner our a to continue to to be

us our build. the Just year, of The is end income you with of XX% are but really last billion for the and is which the in high most some majority them, part, They about portfolio. on income, to account. fixed to to as that’s that's penetrate give an at for entirely, is you which shy general increase that, assets. opportunity background, fixed for know, looking we about just grade there not XXX of really institutional, further the And had yield that of

dollars which from specifically would middle really help to lending that we PCI, they're terms them I invested is But investors of those Debt, several our terms as for Commercial make quite arise over sense hope look cornerstone investor what us principally as talk for market in. and opportunity which need question. services are, significantly to your more Real that. plans get about AUM the both business, for their like but continuing than answers Estate in of to U.S. that hopefully the that see launched in that, incremental them, time AUM will to and to us them than the billion more flow You we of that

Craig Siegenthaler

you great, was on some on Do does commentary a in No, these which looking like I that Arya, pipeline fundraising these businesses? real the you key And follow on Alts just of then investing Seth. also private bigger your any just like had you product kind to have credit. business. estate, kind hit too But platforms And the of look debt, for and also performance can fill? across looking I comment holes you're businesses? was on what up

Seth Bernstein

Sure.

them hand. follow we later at to a have I'm general up -- be you Mark, and going more be unless specifics, little me with Let can

as over $X to billion European PCI in fourth We launching We're that which clarify will ahead close We Real is close. Debt. our for Commercial a U.S. Mark a for total raise fundraising Estate pipeline needs, Estate us and continues second are is my Debt around had thought, but of Commercial think I looking Real if a this incorrect. have pretty already me have significant year that's in we're larger we're offering in. planning

multi-pad fundraising year. all this our on are more good Arya, to a that which the didn't have up opportunities They like had you performance. which of which but connection just which which know fund, up, specific performance. in year, thought really expectations bring is bring funds significant you manager very Asturias this this, I I under So main and would we both what umbrella, too I regard with see strong With some long/short funding TMT for is has has think as had them, fund

So we well. as there see opportunities

was there your part of Sorry, question? second a

Craig Siegenthaler

was performance invested So --

Seth Bernstein

-- Sorry

Craig Siegenthaler

And then first was fundraising. part the

Seth Bernstein

and hard Commercial our the good lending Yes, so to March-April multi-billions Estate broadly bottom our Real you. With I’ve private of this U.S. year products, look, answer market seen the fairly or particularly fell to in respect stability We've for hit got tried to out as fundraising of credit grade non-investment in business. out. all both credit I when laid PCI credit, in dollars middle business, performance, for really timeframe recoveries in

But feel work I think quite competitive Real challenges I certainly But position. years the is take to think that out Commercial all-in-all, very in a Estate we're to good competitive. marketplace our space. been has generally. there We U.S. in performance going credit are

Craig Siegenthaler

questions. Great. Seth, taking for thanks my

Operator

you. Thank

go Your Dunn. Please next is ahead. from response John

John Dunn

Good morning. size road it do you like for wise? but the could And The And guys, that? down like tax maybe alpha think next you strategies selling small should weed. a growing are How you years. what look few over be winners it's the

Seth Bernstein

focused have we Look, the it initially acute. where need on most our business private is client

that they important you've flexible like weed. want I want view and build think our As growing SMA are are their we is fast growing they with that that Philosophically, for customized been indexing very how recognize to where is regard format for And and us, portfolios. to a it us has a move our for clients to core others. and said, it's opportunity

And think but lot number it. to so we there. think in we are have globally, and But on It's more to put do looking still ESG oriented, hard thinking there a technology, we me whether indices are the of opportunities the thoughtful at we about do to we be it other for talent have challenging a manner. that a

John Dunn

little then do the on what what billion? in And some to? that strategies on channel, it of particularly And in private you the differentiate more are that products How you. What wealth a ESG. that? are largest are they manager guys are gravitating X.X Got

Seth Bernstein

there's think I Look, talk of Yes. ESG. enormous amount about an

into it's think very really weeds it I to the important of what get means.

incorporated that strategies of what the that valuing that those we place the sort So to on be. are variety I'm companies evaluating companies are we're properly dangerous a different think of glad you into of not understanding asked costs question Look, discount a rate that especially is lenses, the way.

or developed the equities, internally asset analysts in it's in so -- we where have identify to And frankly of and classes a the we number see sharing broader among tools, whether credit long risk in order in across portfolios. fixed data in we are price properly

AUM managed billion and tell nearly would is XXX using you, of integration. I and so something it's And ESG our today, XX% currently

However, own targets of feel we reporting. not through on, are externality that specific we the where whatever more would been reducing call we be matters. them And call have and $XX in billion it's necessarily. incredibly focused growing More ESG measuring actually to purpose. for obliged in some governance negative portfolios carbon These, double with but line funds bottom a have Those on rapidly. usually impact focused strategy we're and specific goals what company's to and mandate activism our investments kinds related

example, XX which portfolios for the purpose, about year-over-year. mentioned, about So billion, has increased XX% for just I

important roughly so the think that's overall And context of XX. of I growth AUM our in

are strategies thematic, tiny, and big, look our and give our are muni the to you our there. what larger very a impact just sense, thematic highlight press but I’d U.S. global at interested you in sustainable of -- I private and newly volatility interesting momentum real manage So of when is green gotten our lot strategy, group sustainable some alpha. client there's our a launched strategies, municipal what it's It's our think

focus hope an question I don't research, on answered have your table. So we perspective but fully, unusual tell I we you know we're bring excited that can to pretty a fundamental with the I if think to

John Dunn

very Thanks great. That’s much.

Operator

you. Thank

from response ahead. Robert go Lee. next is Your Please

Robert Lee

get as any subtleties year focused more questions. -- equities in kind maybe guess just morning. trying sense right of sense value of of you from to a on Good more kind for have trying any you kind away get be maybe -- base similar now? are growth I with specifically know, interest Thanks of may taking I'm – institution Hi. there's to and seeing RFP investor in don't my I activity? into the maybe seen to just shifts you hear a any of the

Seth Bernstein

Hi, Rob. It’s Seth.

that and when for in certainly in and from that's an some more which interest Certainly very -- of prior growth Let lot we of seeing Yes, there. knitting earnings reflects being a space. searches, pipeline I ESG of sure me value odd that. should in equities my that our sticking business added have value Active manager which comments couple quarter, are a the won answer. XX% is focused fourth have perspective. to commitment just is deep I value in people make seeing think a you our reminded we're our seeing But like abandoned of hard, and to we've me

customized feed as our you lower So side, the solutions yes, I we've also on we some. interest should retirement more in do seen tell well. see

fees much certainly in the of and book, the seeing has well. we but rate yet, while a our significantly change the we It doesn't So interest higher lot there. fee fee that been our some are mix seeing pipeline as average base are underlying lower in and

Robert Lee

just I heard comp want follow ratios. achievement on right. the the just a Great. make on to sure it up quick I And

the You that. targeting not I suggest first missed guidance, was year? have over the targeting, the use of XX.X it we -- may half

Ali Dibadj

it’s we XX.X quarterly. Rob, and Yes. it give

and some fluctuations ratio maybe want somebody’s about become our on benefits, the fewer of make going COVID that that of people. during fringe a ratio fringe but the we is perspective. will key we've has to sure bit, down And doctor So that's example, comp what the as up from in impact it's right? is more something maybe and releases learned a performance just people or our business, for And to fees, that QX. piece to bigger So be impacted may go think people little But often the that for if as rest much given that's off year or of comp there well and times, not, if and by fringe. benefits doctor our will a

like we're this. to we be down So what XX.X% understand certainly that that people in for going guiding isn't always just to to sure want is a now, make directionality year the correct. The

Robert Lee

that. All payroll is it to right, and have -- also things great. seasonality usually costs as XQ like relates you this And

Ali1

Correct.

reporting We that. clearly are

Robert Lee

Those Thanks so much. my all right. questions. are Okay,

Operator

There it back questions to at this Mr. you. I'll turn Instructions]. no [Operator Griffin, time. over are further

Mark Griffin

day. Relations with Natalia. Please Investor any contact Okay. you we Thank feel you, for participating conference And Goodbye. everybody further you in a Thank to our great wish call questions. today. free

AllianceBernstein Holding (AB) 11 Feb 212020 Q4 Earnings call transcript