AB - Earnings call transcript Q1 2021 | AllianceBernstein Holding L.P.

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Operator

Thank you for standing by and welcome to the AllianceBernstein First Quarter 2021 Earnings Review. At this time, all participants are in a listen-only mode. After their remarks, there will be a question-and-answer session and I will give you instructions on how to ask a question 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 Good the us earnings Private for and quarter is review. by us are that's and operator. of our section CEO; first www.alliancebernstein.com. business; website, CFO; being Dibadj, Ali Bass, to Burke, the quarter accompanied With join posted presentation Seth slide XXXX This Head to a and Investor COO, our remarks. morning, you, results us after Relations additionally, welcome Alternatives Private to of discuss and Kate everyone, today our webcast join the for company's Thank conference will and Alternatives our Bernstein, our discuss Matt will President call prepared questions

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

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

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

ask please such So this questions call. all during

I'll Now, over Seth. it to turn

Seth Bernstein

channels, annualized to record client performance drove solid led asset active the for morning a first diversification we municipals Good way. today. base all classes. pipeline Near-term strongly alternatives. and in across balanced other long-term grew alternatives our geographic investment income, while equities, focused differentiated three led rebounded In fixed performance And by institutional growth fee you us and offerings, quarter, specifically across ESG, the and joining thank across

to while unitholders. XX.X%. and X%, growth in distributions margin to we We operating both For posted growth the quarter organic our earnings of active delivered XX% expanding

XX billion, of net quarterly were on Gross increasing rate. X% And growth year the with X% X% ago. Firmwide and billion, our channel. XX% active Let's years X prior assets trend from or Quarter-end from management from the were Starting crisis a pre-financial X% Sales inflows $X.X quarter flow year-over-year highest firmwide specifics. $XXX $XX.X AUM get since up were the billion average crisis, Slide pre-financial quarter. the increased quarter. into $X.X X. overview a our billion, second ago sales the XX% X% were under Slide billion sequentially. since $XXX and year-over-year shows by and annualized was organic highest prior up

led million income, strength of private we gains. we're quarter up $X.X net strongest growth $X.X outflows Net heightened its improved Retail of munis gross Institutional offset channel. built by inflows inflows positive increased In balance ever equities and wealth, XX% than fixed and continued client net were risk each $XXX our with to as the sales in second income. retail advisor in in First XX% billion year-over-year, gross in net inflows more sales reflected showing inflows of $X.X investment taxable generated business. active billion with taxable in fixed performance billion productivity and of sequentially driven appetite. sales

fixed the X. investment income economic strong rose nearly for a markets, quarter, yields in to let's Now developed beginning inflationary turn meaningfully expectations Slide all In performance amidst reflecting concerns on rebound. first global

in sectors following With the outperformed the year. sectors first price driven credit March the were quarter’s bond the high-yield, last over Despite global declines, XX months yield negative exception of past of governments. returns credit driven rebounded and COVID-XX have sell-off strongly

respective retail on Morningstar one-year the positioning have top retail global and this multi-sector over high-yield and five income quartile income American platform, income each categories in benefited credit of strategies period. global our Furthermore, with including ranked period. U.S. platform, of the during the strategies risk-on Our income their

and XX% have ended of periods. assets XX% outperformed strong a three-year five-year outperformed the versus rebound fixed period one-year our of over March, period XX% period. assets our the For prior in over income the

continued quartile top We with across strong municipal each time Our inflows. of lineup period. the saw X out in funds outperform XX to

demand. in was income quarter’s This

fund, For to muni CPI example, hedge inflation our and bond fund to in believe industry bonds the tax-efficient which municipal XXX% swaps. we is inflation only to combine the

inflows, are inflationary from concerns So assets which the as benefiting three-year solid performance our negative solid long-term period. equities, products. XX% XX% outperformed real otherwise over were five-year of over the outperformed remains and In period

market high S&P We've strategies economy first started value points. equity outperforming like the the of in the benchmark market have portfolios noting that to exposures XXX greater as benchmarks and waves both Our our participate outperforming, assets momentum. cap beta quarter, market of five concentration basis their relative stocks underperformed led Growth It's to with had portfolio the heavy one-year In risk held our equity positioned composites weightings would of of year-to-date to proportion XX% stocks of lower factors our reflecting breadth XX% – strategies. and by mega our to worth performance reopen. their abnormally their these nearly by ground. core in XXX held

Our for most Offshore beating period. the sustainable to value U.S. One Citywire investors providing funds U.S. equities over U.S. add thematic award available X,XXX Offshore Fund three-year over a

funds cap concentrated were million. to both with our assets bronze large growth Additionally, upgraded a by received only funds medalist funds by in X% over designation Morningstar, ranked growth of $XXX

annualized, grew equity equities, XXXX, X% offset with in suite. sales in accelerated on quarters by quarter income first active our were we strong fixed helping record, XX% a higher inflows U.S. channels on are below to record and retail driven straight XX% Slide equity, high up active beginning growth to retail income Gross annualized our our Japan. organic the by redemptions on second sequentially. Moving and had a sales quarter $X.X of SMA taxable our Net XX% XXth strongest billion, X. inflows. in client Municipals

America has positive chart, products on X shown organic more generating led a and As offering with have $X the than quarters. Latin Japan, to inflows balanced the XX% balanced of each classes. consistent XX EMEA, billion sales, balance channel of Geographic diverse and across XX%. growth now Japan continues ex last with upper product sales net of retail in the XX left asset Asia U.S. We XX%

managers ranked with funds posting XXth several rankings the equity as XXX XXX flow shown XX our largest out on ranked is strong of Our Muni funds managers. bottom right. of of

discuss Slide institutional I'll on X. Now

$X.X up sales since debt, in $XXX CLO back our emerging unfunded active saw market strong reported XXX% in securitized AFB investment growth XXXX. gross income Active corporate, Fixed began driven XX%, XX% tracking up diverse U.S. of of pipelines were sequentially. ESG, quarter billion by equity were and credit, year-over-year, sales this were robust, First grade income sales fixed down strongest million the we and driven by sales third and equities debt.

This yesterday the ESG, the of the Corporate we of Program founding newly Columbia commitment the at Speaking as relationship our groundbreaking Climate phase announced School. member launched Affiliate second is of investment began they XXXX, climate the that arise on in experts sectors, and issues, between across facilitating asset ongoing AB’s in and interaction as regions. classes and portfolios, scientists investors University process the Columbia

Our at billion compound began XX% growth well institutional by growth AFB pipeline end, driven $XX.X we tracking in since in XX% is and of annual The quarter to grew XXXX. represents over alternatives. sequentially a million a up record $XX

CRS, notable investment by grade equitable, pipeline $X.X also lower by estate $X supported additions in in include $XXX U.S. shown of billion equitable, in right, $X.X and million debt real the As supported fee corporate. commercial fourth billion funds U.S. Euro bottom in our billion CRED

Slide productivity. performance in saw $X.X a inflows sales our X. investment year, increased wealth credit clients the $XX and continued actively to deployed advisor we've also million million billion, improvements management Gross Moving cash well close which notable funding. equity private the risk sequentially, we improved raised of net and XX% by and Increasingly, in and lower planning We first increase into $X.X with year-over-year versus reflecting for $XXX pre-IPO with in of funds. long-term on fund redemptions, billion allocations, strong XX% in future of Combined of client appetite. heightened private bodes private prior generated

shown the in proprietary ESG right, our experience As equity muni growth tax-loss continue and managed bottom product. we harvesting separately impact, on to strong

including Bernstein be first commissions bottom left trading investments. extraordinarily increases by focused sequentially Growth across year’s volume platforms. XX%, ESG, gains. array year We’re in U.S. Strong retail new India launches we’re prior revenues alternative I’ll volatile on the mix significant continues X% last similar down planning strong with XXXX investors. standing sell-side XX. continues trading Research SMA compounding X% with and from market at the and quarter. Asia outsized finish growth graph to business a and for driven in higher Slide in of diverse of shows acceleration overview to a versus funds increased on product our were shown

sell-side our XX% of quarter. declining first we to with you momentum our our know, saw and on outperforming. of institutionally assets and of periods. desks, term strategy in We income assets good for and of of experienced equity income the our healthy in XX% are fixed three equities as That years focused. XX% over and business XX% are generally years. shown checks our performance across research Near on income Slide over XX% volumes XX% trading our the volatility said, As XX; in five prior outperforming from despite remains up Progress fixed outperforming quarter improved fixed assets offerings

eight drove retail of nine seven institutional Our with in XX across organic quarters the geographic product consistent growth last channels, balance of and positive last all positive as quarters.

CLO. product inflows XXXX. over Purpose well million, continues for half on a second including our sequentially. diverse sales strong with Commercial Our the Estate total. over on accounting $XXX $XXX million on We institutional Differentiated in up record pipeline of to Real a our AUM billion and our pipeline base we’re million XX% is $XX Private with alternatives net Portfolios for fund and closed ESGs fee in growth, Debt executing now U.S. amplify fourth in now wealth a had closed and product $XX

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

was operating basis XX.X% adjusted quarter first margin of points Our year-over-year. XXX up

Today, highlight Dibadj, year calls will distributions members We’re platform. share versus I’ll earnings I’m participate will up key who XX% who burning in From up the Matt forward, our delighted of by going time-to-time private prior operating established introduce to some business. our period. growing our of emerging our with Matt? and inviting to Bass, wrap committee financials. Ali areas followed alternatives comments to was our be unitholder Matt

Matt Bass

strategies and morning, good attract to History, needs. great our going platform, and private talent clients’ why AB we positioned alternatives our is meet current to growth Seth, Thanks, continue at to and business AB. believe investment I’m our well the discuss everyone.

build-outs. growth we the broadly. Before context provide franchise, want of we’ve crisis, some team and diversifying our inorganic our and We diversifying alternative in, product the AB more organic lift-outs growing growth of income in combination equity significantly a firm, development, to growth, at capabilities. building through fixed as out franchise, acquisitions, multi our invested alternatives team growing I this and and targeted financial and well behind dive asset Post accomplish as

can Slide firm, you As to added on XX across investment markets. private see XXXX, public we’ve both the diversifying XX, and capabilities alternative since

equitable integrated private billion was alternatives, current these appreciate European alternative private aligns the growth estate to on strategies you U.S. to from XX, which an AB into credit alternatives leveraged XX, a Today, I’ll review it’s total across $XXX which represent call strategies. estate business, of which credit This is private platform scaled before Slide business our platform. On know, CLO debt our Turning represents of Collectively, credit credit business you, energy. business focus alternatives real has peers and business, strategy. capital finance commercial with business tenure The a our AUM estate fully backing our Private private our on recover private basis this than billion. key extension currently Slide has and well that business, get $XX nearly DNA. AB in can apples-to-apples manages $XX commercial Credit as billion as has sits billion. we committed of in debt, in AB’s long XXXX the AB’s XX% a I’m direct alongside [indiscernible] many is real approximately firm’s placement launched our competency credit with real showing Core $XX more liquid U.S. and lending, AUM. direct capabilities with we been oriented our including as Investors, component of built

bit Let’s of some businesses. a these talk about

XXXX Barclays, we of from lending lift-out with Private five started team a Our and team hired in direct track record initial was established Credit business an from AB where core backing equitable. Investors via

capital. approximately we’ve years, in more over the market. $XX to XX seven grown separate than with the vehicles segments. focusing We business billion and manage Over $XX has multiple five clients targeted middle inception, to on Since middle past XXX U.S. deployed companies from the billion, at committed professionals market pool approximately investing accounts both

business includes estate real European lending businesses. commercial U.S. and debt Our

transitional team capital, opportunistic team its in various was pool $X and fit. lending with rate property and committed with billion, teams across the launch, focused the both closing accounts this earlier debt our and investment XXXX in fund U.S. European investor we targeting having we of Again, aligning we’ve on separate currently specific than types. properties oversees business build-up. London, past behalf XXX via the in Based last and $X.X are Europe this market We meeting vehicles started a mandates on billion opportunity, year. base, institutional the the the financing have on across currently nearly same announced real year. lending manage business market initial a entered Our has fourth commercial fall and late estate transitional deployed in the deployed Since more strategy global in currently two The UK.

As lending strategic a with share equitable. equitable relationship is $X we launch our with backed this direct by commitment, business, the of important another with example representing billion

Lastly, two line our with depending vehicle across investment includes committed vintages platform performance growing. and our alternative strategies launched that strategy we commitments. capital. have type, with in other vary, we’re we targets in additionally, XXXX million speaking generated alternatives in And client have was energy Broadly private performance that’s the upon offering $XXX

our Turning about XX, strategy. talk Slide to let’s growth

very to the times strategies growing market private the the of is promising. four forward, are times supply rate growth strategies Looking favorable backdrop. a backdrop public demand with two market and at traditional Private for business

speed, private share capital scale financing side, advantages. On continued a among to the flexibility, capital to there’s offers, and bank supply shift from financing, of other markets private owing

a to engagement. to create premiums. the and search oriented to and illiquidity increasingly With of an client our are alternatives advantage industry-leading at diversification in of platform private On of as vision credit solutions in private of breadth demand side, is backdrop, for markets income market allocating clients terms take this private our AB

all strategy adjacent features strategies. within and by well as capital with notably businesses. relationship new as both by been wealth tree; to or growing This or is growth capital existing both as our driven expected classes as branches equitable, Think scaling the existing trunk and leveraging core permanent extend and sources, of tree targeting of adding by existing to adding institutional to organic extending private continue through launching footprint. has and investment adjacent their this going asset Our access strategic our firm’s both to scaling teams forward the historically our new clients strategies, well across supported branches existing the segments, Organic funds our strategies. trunk growing retail into capabilities business, inorganic funds platforms as growth global by growth, our into the

examples. few give you a me Let

transitional the On side, on estate historically business real against U.S. lending focused our assets. has

our origination lending, into this stabilized network leveraging and We are extending credit process.

as income us strategy high our extend team worth allowing investor the to leveraging the yielding such has provides business credit IT equity technology-enabled well industries expertise, services growth this We’ve growth as the capital leveraged business, and growth build capital financial and which and companies. industry sponsor stage infrastructure. higher private strong launching lending market. presence the and side process also same simultaneously to direct And relationships debt We’re net a in oriented company to as

that through to we and targeted will In have lift-outs. continue growth, addition team platform acquisitions organic fill we gaps to

be everyone. not everything We’re going to to

our our first credit weighted an Asia step an Europe that of focused opportunities from edge. platform real both Expansion will Europe investment of was business the large towards perspective. in is expansion into investment growth estate growing represent have and where considering Our the towards geographic markets we’re we currently end be Geographically, U.S. across segments.

deliver business. direct virtuous have with strategies improve commercialization strategies general AB time, the clients’ by assets asset-backed the and to equitable private partners’ capital, needs reallocating AB’s renewables to markets gaps Bernstein. ability the with permanent as to necessary to and to yield expand existing the scale permanent These our capital channel Equitable account to institutional scalable has enabling business, as as balance to at same including complement yield also notably platform cycle new our private higher with global to provided to special a its of We our a has led seed distribution sheet, additional continue opportunities. liquid also our are This infrastructure situations. aligned to management wealth strategy our retail quality lending broaden AB well large, including end and our channels,

times capital across XXXX, acquisitions the I XX these why we initial team party mentioned. We’re AB XX, equal AB? third On answer have been XX amount in completed which successful Slide seed. four to lift-outs alternatives of question, channels within raising has the of as been and founder the collectively we’ve Since previously

One of How source we the proactively multiple for attract AB? teams. to options. questions to market competitive competitive, This slide presentation face from we talent that a is, opportunities is in and why use the get engaging with we a an do often excerpt teams with you are engage the is market? teams have The companies and and market

commitment the get this We One ourselves diligence process building the positioned a to market for the consistency so to segment the to upfront that clients. through facilitate best returns our team. and detailed team’s attractive target are both comfortable providing We autonomy on approach that just continue differentiate the terms we I in deliver they desire investment well business to sources our and and strategic think key investment capital to discussed. of in a factor as as this maintain want model autonomy. is particular I AB’s in team’s

to about comes that from operations, and Through the distribution. focus a these our a clients, strategic broader we the firm. able technology, investment to connecting including with resources also the teams dedicated believe this, team, combined we’re we’re offer thoughtfully global institutional of However, firm,

another our initial the engage process contact from important is Lastly, throughout through teams we value how proposition and commercialization. with acquisition

– have that, to and a have team the business drive where turn we acquired to call growth. broader With partnership networks development I’ll the in We dedicated Ali. the over with team, firm now

Ali Dibadj

A Thanks, business into and Matt. strategy. key of a part look great our

on a Slide with income statement GAAP start Let’s XX.

basis of net period. XX.X% billion prior from points. by First increased million quarter of the year-over-year. XX%, increased GAAP $X margin GAAP by EPU year revenues $XXX operating of increased an the Operating of XXX income XX% XX% quarter $X.XX in increased

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

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

the period. same all Our adjusted across AUM, fees higher period, touch lower On on Slide on financial for Base which show which increased versus P&L increased first distribution highlights are the grew prior the quarter average first XX, I’ll as year three XX% on the beginning by we fee through with revenues, slightly the net shown quarter rate. year XX%, reflecting for walk partially XX. Slide XX, prior revenues versus offset Slide XX% channels

of rate first fee flat was The sequentially. essentially basis quarter points XX.X

long-term pipelines to continue be rate grinding time-to-time, the that averages that volatile skew mandate We our given in trend should may our large although higher. be believe fee may from

prior million quarter First on year period, middle primarily to private lending the due market fees versus million earned $XX by higher $XX performance business. increased our of fees

the of but year volatility, XXXX, activity decreased Bernstein by the by losses the investment see first COVID-XX the gains capital a onset primarily First $X market as quarter driven of to year in reflecting incurred for missed million from Research quarter trading ago, revenues client the million period. quarter in of prior higher of X% compared Services $X pandemic. outsized first related We

total Moving XX% compensation driven and the X% expenses in benefits incentive compensation revenues. of increased to first quarter, $XXX first higher Total in million by adjusted due our to expense operating expenses, year-over-year. all higher increased quarter

with was revenues expected, prior the year first period. the quarter As flat of XX.X% compensation adjusted for net

compensation Given the adjust conditions, at conditions with XX.X% option market a current the year, second the of change. quarter accrue ratio in plan we to throughout if XXXX accordingly to market

our COVID-XX comp and consider benefits Promotion comp up mentioned, become our for we to previously we last quarter, post-COVID. and costs the that mix, bigger muni drive As XX% stated quarter, should as the declined may year first ratio performance ramp lower due a piece lower of full ratio fees the which owing up. have pandemic. costs year this expectations may in fringe T&E servicing Moreover to

return we in expect levels servicing to XXXX. and more normalized second to levels forward, closer the begin spend promotion half should of Looking

uncertain. pace the prior As which travel G&A these pickup and at the increased by X% remains expenses in quarter meetings same resume, versus period. the first

quarter costs the tangible related charge errors. declined For relocation of the $X.X expenses to by the amortization by a and by which in servicing the quarterly partially million, year first ago, the Interest $X offset portfolio the foreign acquisition, quarter third million absence higher unfavorable translations the and expense XXXX. Nashville reflecting ancillary Bernstein occupancy associated latter lower were ended of exchange taxes, from with declined

income First outpaced million growth versus quarter, prior expense XX% year of as operating revenue period the increases. $XXX increased

leverage compared quarter margin reflecting period. of our First XX% as year-on-year, first basis was over business. of XXX quarter Incremental to operating was up margin prior year the XX.X% points operating the

of to XX%. business incremental average We necessarily Not but XX% margin overtime. manage an continue to every year, on the to

discrete effective quarter first tax X.X% for AllianceBernstein rate The L.P. items. reflecting was

XXXX to X%. planned X.X% approximately for corporate with We Nashville. on rate the our continue of effective finish an expecting tax relocation I’ll update to headquarters

continues proceed Nashville had thirds target At to of we quarter toward XXXX. XXX two employees, relocation base very of Our the way end, well.

the returning moving building. third which headquarters new national begin in to office our the in major and we into plan includes quarter, EMEA, the Our early offices to U.S.

to occupancy the million related offset $X in national resulting transition net million, headquarters savings approximately operating For have $XX savings to corporate compensation net of million in income $X.XX EPU. relocation related is $XX or expense better million, $X $X the totaled first quarter Of costs. by increased our million a $X increase million accretion costs in estimated net

For year XXXX, thereafter. around to accretion we increasing expect unit continue per each of $X.XX the

transition expect million. We XXXX beginning With that, call million $XX is to the the range of in turn Seth. to the towards the I’ll over be continue ongoing to once upper $XX annual end over savings to expense of

Seth Bernstein

Thank you, Ali.

continue offerings, leverage on levels. the leading managing channels, make we offerings XX. travel targeted the mutual restrictions equities, previously annualized to channel yield Closely with progress with Turning multiple strategies. as in suite growth, Matt active quarter, margins Equitable well of and dimensions our us growth first outlined. align drove strong COVID-XX led fee as we interest and municipals. above alternatives, In strategic expanded active each We higher partner growing as to We incremental growth X% our Slide across by enabled enhancing organic alternatives line of strong driving our their future well to discussed, alternative double-digit meeting continued top spending related our

yield a for distribution partnership, questions. and unit quarter, X%, first your will a pay a we rate take With we rate, robust per low a environment. annualized $X.XX that, are pleased to have of tax we and the durably of a As low

Operator

of comes Instructions] [Keefe, [Operator question Fannon & you. Our Thank Woods, Bruyette Inc.] the first from line Dan

Dan Fannon

in and kind towards shift like bit also rotation? in question happening heard value that Thanks. there’s the of seems the and a the Good more growth of you we’ve versus Can is the talk of income kind broadly maybe the and fixed on, the business. pipeline equity the past. of from a in what’s dynamics, context the momentum morning. market the bit in My you It just alternatives and a about

Seth Bernstein

the for question, Thanks it’s Look pipeline quite remains the Seth. strong.

the mix we a customized it’s some indicated a and of some in is income, is our solution. mandates Part big fixed at respects, of rock lumpiness. been retirement which As that change $XX.X the there In in pipeline. in billion, has function of CRS, our

do a but those have way of less perspective. size from revenue much a So an impact have perspective, a from

we the and the look of hasn’t interest the billion retirement which large within had area, of ads would $XX value multi of are we is The equities quarter, XX%, a seeing still $X solutions. equity incremental. with about at you to mandates. a incremental some about the is odd activity as $X pipeline include odds, But in the all. pipeline, in our more income we’re consultants and seeing is general We changing, asset XX% level, billion billion had our fixed If customized a we XX% rest institution mix statement, but are about seeing in abated number

So assets I would see size and on necessarily actually the actual I guess, activity we the earnings mandates and revenue underlying say of the amount the rate that when the of revenue average reflect and we’re – winning. doesn’t the

Dan Fannon

when normal, we be is that helpful. as that’s are the lot of Okay, kind of of that, going kind what’s what want servicing of be? could And back dependent on then up, just of XXXX are But clarify on characterize ramp factors. to a or you just the and confirm right kind framework, is kind I promotion a to the follow of understand would normalization

Ali Dibadj

Yes, thanks question. the for

to We continue to how it’ll we what’s levels on hard XXXX. hard we versus now. It’ll hope, historical competitors given that. all some can to you tell. levels. be depend not believe tell as And will needs, that. it’s versus look, would right in basis, going savings XXXX we a to It save higher than much do. certainly We but depend So, say, on think Probably on client normalized have it’s what like normalized on

it think point. this XXXX high XXXX how So be we than XXXX sure. as higher about as Maybe not for is at should

Dan Fannon

Great, you. thank

Operator

next [Bank line question Instructions] from [Operator of the Carrier of Our Mike comes America].

Shaun Calnan

Hi, guys, this is actually Shaun for Calnan Mike. on

to given and these offering, can the current if build that areas infrastructure you grow renewables offering, So in Can any, your and increase you’re and interest products? you quickly mentioned looking alternatives. discuss you as how that

Matt Bass

that. is Sure, to This Shawn, happy Matt. answer

private side in mentioned scaling growth, the as earlier, I those teams wealth is – mentioned on growth So, two strategies, extending organic pillars, core strategy I growth. the inorganic

On area is notably inorganic equitable. renewable client the the And global by side, we're infrastructure being that, client our led of an and within space demand, certainly demand, focus.

but in future. there, offering large we're scale expansion that regarding currently with one have is don't markets looking equitable win potential at an the that of the So

Shawn Keegan

Okay, thanks.

Operator

next Our John line from of comes question the Dunn [Evercore].

John Dunn

you of kind give a as temperature lift-outs guys. markets on check-in Thanks, seeing what pressures Could far you're not of bunch, as going secular maybe with being but the a us the and anywhere? M&A team

Ali Dibadj

do Sure, John. happy that, to

strategy, that's it look, lot next remain you've And M&A object. by describing. And we're look, small. that we that the flow, if the to we quite be that look, our for M&A, skills, things that geographies, our not those which there's in shiny that spoken continue seen to a matter you enticed you're bring and the higher very the of product, It's continue likely flow. shrewd view Look, and said higher selective traits, whether pressures precisely we much have see believe the activity can probability for low cut to some the large mainly sector, markets before we together So, no all is is in the probability and going become will size. not we much And M&A perfect, The M&A. where channels, it's is combination ideally. complimentary of but has right, success, again, to of are and a costs

of together criteria past from complementary fits the We'll top hopefully do sets be few mix, anything coming that activities skill only bringing We on that we're the our of position of of suggest – believe but so are M&A again, there. our stay firm. and to we’ll we in going quarters strength, the out

focus you big Matt, that of alternatives, is a part for from us. Of heard course, as

and to going focused. growth And so that's trajectory. very, we're be our And our where that's very strategy

we're And going so in where particular, that's looking. be to

John Dunn

on follow-up, my side, just update and the as channels investment of the then And distribution maybe different areas the sense. main maybe looking your parts on at Make geographically.

Seth Bernstein

Seth. it's Sure,

ramp mentioned our me the earlier, start a we’re it I institutional. with Let bit around seeing backlog.

seeing interest both and activity U.S. also with responsible are Europe, interest in that investing pretty U.S. We fixed the here and lot particularly seeing strong in that and growing where Europe is equities what income. we interest And call real or portfolios around a we're but of crosses purpose, in

there's continuing private for alluding As to, was appetite Matt credit.

receptive new we as it. we launch, audiences for So pretty have to capabilities see

is, rates know, and continuing about you there. very rates which is rising and inflation in retail, interest important concern into for a Moving seeing market we're interest us. Asia, There's

impacted products. has So American that perspective income from the high-yield our of global us and

would other that equities, the sort rather four for treasury equities or Japan. the notably over over to Conversely, months, quarter in I last in given a Asia, moves lot we’re quite the demand in five they’re hand, asset multi say relative extreme of frankly, of seeing muted historical yields had. experiences actually the and On and we’ve

the over significant with income alternatives can finally, big demand interest munis, better fixed In to we in a muni in we’ve a SMAs equities there I really from of private so degree. year at had lot perspective, build-up pretty the a quarter. certainly And people work it investing think, for and a cash as United and and And be much elsewhere. retail. first is Asian lesser Europe, and clients and function of but to really, very equities robust taking marketplace putting us you And both for a driving, seen course from here, States, client mix in see, our a least of continue had been demand have our strong in the the ourselves cash and to slower

continuing see So, seen on we’ve while. a I appetite in than interest more

John Dunn

Thanks very much. Got it.

Operator

comes Suisse]. Our line next Afifi Kareem question from [Credit of

Kareem Afifi

for first channel. wealth private Good morning, My the question Kareem is is This Craig. everyone. on filling in

redemption a improvement if drivers decelerating this So Thank this channel in in there sequential redemptions? future? about expect behind activity what little you. we Could was you a improvement? the talk And XX% in bit should the

Kate Burke

and million we Burke of the to factors a attributable net over number the and as of for thanks and really to that’s $X.X of front have we I year, at did and commitment both sidelines, advisor putting trusted but Kate model and of And the mentioned with allocation as really Hi, clients course at of the putting cash the from on the as of overall with each. cash Seth cash team at just beginning and campaign the that offerings the earning investment encouraging we based quarter the added this Look, the classes. leaving platform, do. the redeploy billion. did Yes, here. forefront, did the clients a the the $XXX holding wealth well of it’s the clients pandemic, the center thought service a the flows strong about federated strength advice, asset question. the of move down we’ve everything think It’s cash higher through to begin the success advices Whether to wealth

we – see to continue movement we So, there. do continue

also outcomes. significant the strength the mentioned as to meet product evolving as always and their planning as launches client ESG again, also We’re well again, in of the while SMA Seth focused XXXX around alternatives, on platform preferences, in

predict year, focused business flows, are in So, the with we’ve quarters. this far we’re pleased so coming success the on grow seen continuing can’t the to we but and very

Kareem Afifi

Thank you.

Seth Bernstein

– just to I which I And I we that’s add think performance, that, add retention. also bank I improved investment to I private had would with would guess think helps continuing. just respect

Kareem Afifi

you. Thank

Operator

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

Mark Griffin

operator. to everyone you, call Investor to Thank today. have reach day. And you, you. Relations great questions. Thank Feel with thank free our out Okay, in a for any conference participating further

AllianceBernstein Holding (AB) 29 Apr 212021 Q1 Earnings call transcript