AB - Earnings call transcript Q3 2021 | 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 Third Quarter 2021 Earnings Review. At this time, all participants are in a listen-only mode. After the 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 two weeks. I would now like to turn the conference over to your host for this call, Head of Investor Relations for AB, Mr. Griffin. Mark ahead. go Please

Mark Griffin

in Good earnings and is review. by us that’s and Misty. our site third www.alliancebernstein.com. website, being to quarter accompanied With posted presentation slide XXXX This to a Investor morning, you, Relations Head welcome of discuss everyone, Kaul, Burke, today our webcast and the Thank the conference and CEO President will for results Bernstein, Ali Company’s for our Vice CFO are Seth questions Kate our prepared Asia Senior Pacific; of President join us the remarks. quarter and COO, Dibadj, and call CEO; Strategy; Ajai after of

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

our presentation. like to out I’d harbor point of language safe So, X the on slide

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

questions So, please ask all during this call. such

Now, Seth. I’ll to it turn over

Seth Bernstein

you and the across organically the In quarter, third for morning, us today. for grew Good three quarters. five fourth time we channels last the in all joining thank

intermediaries. continue now in and geographically client-focused Our by than clients equities organically Municipals, more once resonate row. grown XX%. a active offerings differentiated with globally and organically diversified for quarters Firm-wide have to eight again, grew

grew both, its strengthened performance $XX across and institutional equities base annual fee fixed our to pipeline investment Our while million. income, broadening nearly

unit XX% XX.X%. distributions revenue expanded delivered growth adjusted X% fee and year-over-year annualized we the our earnings both, unitholders. For adjusted to a quarter, to margin rate posted growth per in of including organic and X%, we operating improvement Further,

and from billion, X% were starting transaction. income. of to generated active overview second rate. $X.X year In were quarter’s XX% net the on $X.X increased as X. shown its $XXX pre-liquidity Starting business, management sales clients with of income prior X% net billion, shows and fixed year-over-year Firm-wide, sequentially. the represented a quarter, of trends. moderating inflows continued driven quarter, slide and in the gross group. performance inflows again with over is focus offset billion Institutional net these supported inflation tapering rise planning. net Wealth, income. of outflows of munis, sales to strength led sales $XXX $X.X of which the million last inflows gross strongest five. multi-asset In once ever sequential Retail fixed of Private by of and equities taxable Investment and fixed helping event higher our on million worth the with $X.X both net ultra-high rate. Firm-wide active discussions our we Net by on billion with increased bottomed net prior X. periods began billion yields third annualized grew into assets in XX% trend AUM net fourth Slide ago a $XX.X or from flows get on growth channel -- slide rose with XX% an a average flow Gross each down firm-wide Quarter-end from $XXX net under and X% quarter, of quarter quarterly up total billion channel. inflows the for by our or XX% $X billion annualized organic XX% quarter billion sales inflows third year-over-year and specifics, last positive X X% were Let’s $XXX organic the in Venerable of growth

overweight multi-sector periods underweight credit. income duration growth to position portfolios and by of also continue fixed our solid inflation higher We and being for

period. the of and assets improved outperformed three XX% performance Our levels and five-year already income fixed our strong fixed the of one-year period income on assets over over that outperformed XX%

periods of their and performance municipal all continue the across We all funds were in of quartile periods. in top peer see relative tax XX our were retail across in XX to the decile top outstanding group X all exempts. Morningstar

SMA, vehicles, tax organically. including grew Our XX% by aware

one-year quarter markets, U.S. most back disciplined towards driven for the through measured Global improvement weights, by from through of outperforming most improving leadership gave to again XX% five-year considering the but large diversifying period value percentage approach In strategic Turning companies. quarter three-year up level of portfolios equity cap period XX% In still style mega developed and rose of growth to XX% U.S. shifted cap high-growth a in one-year for portfolios, assets the towards August period their market equities concentration and end. growth reflects our of and stocks by the for equities, to our equities. The third the volatile outperformance gains September. for strengthened, and our at the in high period. equities the

like channels, on our to retail, X. slide client I’d beginning Now, review with

growth of Third quarter $X.X inflows of XX% growth led equity sales were net inflows. continued million XX billion, U.S. that by in XXth gross our $XX.X the outflows record to with American by up moderate, large a Net Once municipals million annualized quarter exceeded redemptions $XXX again, fixed billion year-over-year flows. among in versus XX% over and active organic of X% cap improving products income income the grew were quarter. up XX% $XXX each way straight region, equities, by different prior sequentially. driven each equity and taxable annualized positive

assets XXth managers. the out left first on XXX with out XX funds individual flow shown last including munis upper notable net offerings XXX XXX on International U.S. has are of funds right, small-cap XXth On XXX quarters. funds. out growth, broad, inflows ranked classes bottom equity of managers. shown organic net the of retail chart, ranked across the of our equity Several ranked XXth basis, product a consistent our driven XX and managers, of funds diverse growth As

to slide Turning on Institutional X.

billion below Venerable ago declined year which well prior $X.X by were quarter Third sales sale. quarter, from included of billion gross and $X.X the a the

has million inflows low for inflows X.X% to redemption now resulting annualized While priced the a for moderated third CLO, real commercial XX European our Equitable quarters drove net a offering. in the and fixed a also our Taxable Institutional backed pipeline net slower consecutive client we estate last inflows. the $XXX continues quarters. funding our Outflows to posted and million. $XXX offering X X quarter, third-party income of secured the rate, debt net build. and first alternatives quarter, of In

and Our in of ESG pleased portfolios recent our ESG were years. Level Commitment sequentially, sustainable global to in awarded upgrades global in the up billion, which League both Research Investment received We of not only $XX XX% quarter, driven with the Kingdom. Advanced, Team purpose our validating teams a but grew receive efforts and consultancy a the Best also to from U.S. thematic by also Morningstar Sustainable from were ESG United of strategies,

base quarter value end, a XX% Our a million institutional including A mandate sequentially, emerging $XX.X over billion outsourced has record XXXX annualized grew base. fee China reached an additions pipeline debt million The mandate the half since at markets annual firm. began from million up $XX $XXX shares compound tracking grown with prominent a in XX% at with CIO rate fee alternatives and to and $XXX we growth

a quarter, we new the alternatives alternatives XXXX out program the billion half first a first this solutions half XXXX. we that $X been to partner As early redemption of AXA development Last business. of of approximately AXA our low-fee with completed. informed remains in that in retail of announced active and as AXA we mandate engage low-fee AUM includes by critical we AXA continue billion retirement pipeline in platform, prior will in you the expect however, XXXX. in customized expect has $XX fund a redemptions of the our reminder, discussions We, build

As or AUM. X% managed September less we XX, billion for $XX.X of AXA of than our

last over periods the increased advisor Net positive also with Wealth Moving $X.X on prior improving mid-teens. Private sales Management of of both X. inflows to for million the five quarters. Gross in of slide fourth $XXX productivity were billion the XX%

Year-to-date, products while grew mix shift remains in revenues We alternative in grow increased ultra-high sequentially, strong I’ll continue the worth, muni managed overview over Asia. assets We X% portfolios investing. tax-efficient to strongly. with And harvesting Bernstein year-over-year ESG the prior year. while raised continue our doubled and planning XX% showing impact $XX Research $XX the our by business raised and Fund strong. tax-loss focused Opportunity pipeline and our event product see and pre-liquidity million XX. our over equity proprietary for finish separately by net growth sorry, with on -- clients, are the slide strong sell by to XX% with both influenced on side sequentially which efforts, nearly our Europe million toward having interest Qualified our

commissions ramp trading over were to continues XX% and India Asia strongly. up

with overview And our virtual over we continue to grow checks over double-digit two research new strategy coverage attending Strategic meetings. research in progress in I’ll Decisions Europe and investors our on Pan-European quarter, We Conference that XXth three pleased premium one launched our quarter, annual franchise. held business toward in rates, China. with We’re X,XXX slide XXX third reflecting XX. at on our this sectors close

fixed strengthened and time outperforming each and Our investment equity one, XX% income five-year or the assets more three performance of with periods.

tax product quarters across driven of quarters Wealth positive the channels last of last client for positive Institutional growing aware of five Retail Private XX grew in our Our with the has growth five fourth four geographic now engagement suite. active the X and inflation the XX balance and last last of the organic and quarters all XX. across with

ESG our with at CLO stand municipals. $XX sequentially. Portfolios billion growing third rates annualized Our and priced in Purpose at in XX% AUM, double-digit now we’re We up a

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

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

and their finance Oliveira, Holdings seen served Joan as XXXX, of of of Chair have member Chair immediately. and AB Equitable the succeeds Joan Boards has been Ramon March of committees. audit a valued that last may when company. became member of serving Board Equitable Lamm-Tennant of since who Equitable since and of an de a been January has XXXX independent as appointed our You the Joan Directors risk Independent of Equitable effective Boards AllianceBernstein Friday and Directors announcement

to leader in We an Chair are Joan our outstanding to fortunate have Board.

recognized woman social and She is responsibility. the she in corporate history, brings in As to so AB’s risk leader do thought advisory capital first also significant expertise.

to to Ajai review our to Now, Asia you our series, of Ajai? Kaul, AB’s Head I’m business, as Asia have time, time pleased spotlight will introduce who part of platform. from Pacific which earnings we’ll

Ajai Kaul

positioned pleasure having the our AB, a want business, operations. we stress Thank to well have Asia over four the large, APAC’s which is of relatively advantage a built strong built local asset core management growth nearly you, I AllianceBernstein Seth. of a penetration part a potential Today, is Pacific from last strong, following region It’s Asia decades. competitive discuss APAC, points: to given capitalize has position on fast-growing to competitively decades the increases of advantaged several over as levels. significant potential, with growth positions businesses key in market with modest

We a its brand, punches well in above weight healthy Asia. very which have

We robust us, set have a of focused which we on are opportunity on. executing ahead

economic market through and many in rate have Let’s have the faster amongst XX. last and asset to high The APAC CAGR savings Market-wide start slide a to factors, and various high has and Economic are rates institution remained X% two years. the the which across rates attracted recent with a APAC. contribute retail on XX in world region historically grown are assets years growth over events. at at managers savings led that why resilient

to managed is advantage. XX, the that AUM in an early On the mover just line XX%, has decades, Importantly, four market global shows roots compared AB average time XX%. low slide go of region the professionally back this percentage almost of

then, both building office in Strong Australia, businesses in our we in was investment and channels innovative Taiwan, institutional retail first offerings and have product growth. And in penetration Kong, continued one have established Korea China. Singapore, in process since of now of XXXX and Our Japan. performance, driven the Hong built

in product full In the our for notable first acquired China’s ownership equity in of flagship Fund region. Security global our group high and were XXXX, XXXX, and managers of Some across in include, Hong Social foreign of milestones Kong launching which income, service the global appointed fixed business income. both we a high-yield is

Asia owned We Management’s build Asia ranked AB introduced wholly in XXth the most have to recent classes and AUM. tailored out manager to innovation share to of needed. we been XXX willing In fund demand, survey, have client franchises managers entities where onshore Asset fund by in converted JVs

slide on shown brand intermediary recognized as result, widely a APAC, As is our and gatekeepers. to brand matters XX, in

our We weight Broadridge, very fourth AB are AUM. ranked above APAC that recent of in based pleased in our was all well on study punching a by

right, our actively and on bottom through the all engaged and we’re As channels. dimensions and and customers digital with shown social focused media on strong in connecting are

to Asia. importance discuss first offered of relationships on APAC our services grown in XX% AB’s mover advantaged the on strength allowed AB XX, have and XXXX, being Today, most in annualized competitively rate in position our a early excluding client instances, build a Next fact base base, The slide that of we AB’s are XX% now fee being platforms the and many the business. fee an annualized at represents advantaged us position. across We’ve APAC Asia competitive Bernstein and Research since of shows.

represents XX% is group AB’s X U.S. of As average. which a percentage and times AUM, European AUM, of APAC the peer

piece see, of can fast-growing you business. Asia’s significant As AB’s

to leverage, to a Relative as peer contributing and us thanks Asia benefit in Moving a AB’s basis. more XX% from the From revenue size. XX% drive to scale on productivity discipline continuous are our it demonstrated below more operating to in us overall This diversified operating in with margins provides perspective, net peers, AB’s we than costs improvements average. our than have to than we FTE group slide results. higher our per the cost strong positively Asia of are achieving XX. average, has enabled The built on the the peer platform scale

share show On a leader core AB’s evolved market we platform from Taiwan, is a strength slide, income. its as we sought market how highly a the In income where in next feature, has a fixed market are leader. Asian

to product our into strength platform we have this multi-asset. leading brand with leveraged funds, and equity diversify income fixed While

achieved AB’s service equity being with franchise, years, grown leader been fixed the U.S. equity AUM region. X across there. Japan U.S. income by an As has also times in AUM share has past our market market equity X.X the

well. AUM beyond as other Our Japan APAC our markets extends growing success in in to equity

equity grown classes, XX% AUM is balanced As a income, across better at diversifying result, channels. have while of across since we our and and between CAGR XXXX, AUM geographies. fixed a retail institutional, and our geographies asset Today, and

growth. and have only for foundation our strengthened continued We positioned ourselves

to slide XX. turning Finally,

While in in to the opportunities available to have APAC. we date, have take pride we us multiple built growth business we

driven in fixed significant outperforming much already platforms. focus returns but gaining traditional their opportunity and sustainable by present and both, have vol realization into custom for on achieving alone as equity, and remains spanning services APAC equity extended income diversify Our Increasingly, successfully has fixed significant partners for fixed the seek income than rather retail equity opportunity, Multi-asset equity, This deliver we been begun institutional has that there to services, our solutions done another we traction strength as receive low income. in cannot equity desired the requests benchmarks. increasing and in within with channels. distribution outcomes, solutions an additional

office alternatives, consistent ahead investment. of We and as private both, bank a family just of to Both, runway have XXXX Kong, Hong demand us bid plenty well Singapore. are in where doubling and responsible for Singapore public and solutions this promoting customized a registered to There there business. private in is been channel, in as themselves for has from in attract literally XXXX

beyond as will We investors expect seek received member with differentiated, Columbia School and The strategies, our offices at clients. our in decisions. family AB of customization by can services being University, traditional while managed sophisticated and partnership being is managers incorporating recognition founding for who is RI deliver their ESG getting the Climate and Columbia alternatives a actively Earth Institute capabilities, the well look

a of penetration leverage of enable say platforms product institutional hiring footprint. now factors growing. consider this combination of is delivery cross-border and to investors engage and into Innovative in our asset our of Half fund ESG local products, they us well All efficient to managers. ability plays management where institutions

fund FMC to apply summary, to avenues when seeking to may eligible, market. the at per asset set, business, market And management ETF Volatility XX% other in to given flywheel that group largest AB the us For of example, license China, the growth allowing coupled allows this for underserviced expected segments of pursue service over the funds. market our license in time-tested is in high of multiple a the us of advice dynamic Equity in license. Managed In managers the annum. billion active further participate amongst and FMC super its growing is brand positioned unit foundational. advantage in competitive a access And launch access onshore would continues world, self-managed management first diverse licenses, diversified benefit to us to and product growth. management class grow Australian our China Asian asset is of market. foreign from strong component AB’s an the gain second company recognition, to A$XXX allow AB with the us

that, financials. excited back forward. will With are turn the about Thank We to looking Ali to opportunities it tremendously the I present you.

Ali Dibadj

Thanks, Ajay.

statement the income with slide start GAAP Let’s XX. on

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

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

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

third double-digit on on Base quarter the slide higher fee revenues Our the quarter as Slide and On shown channels a $XXX beginning revenues. slide with AUM, which XX% adjusted same through reflecting versus are the XX, the average at distribution increased on year XX, higher of prior Net XX. shown XX% touch across highlights I’ll prior P&L financial period, rate. all X% the we for million XX% third which versus three grew increased rates fees for year period. talk

rate quarter of was The basis sequentially. slightly points higher XX.X third fee

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

Third million performance period, increased market our primarily quarter $XX by year fees million driven business. private prior $XX middle versus the lending by of

regions. XX% revenues research $XXX XXXX, quarter increased for of trading by Research activity client across reflecting third the million and of quarter Bernstein Third all Services from higher payments

quarter and increased to adjusted to third expense compensation, in Total secondarily incentive quarter All-in, of which XX% Moving benefits third to both million XX% the due compensation base revenues. total our year-over-year. expenses. higher increased $XXX expenses and operating compensation higher of primarily were by higher driven due

ratio net market we adjusted to, our year the conditions performance compensation quarter expectations current for At do mix As current exceed of the guided with fourth the of present, quarter flat XX.X%. XX% for third comp given the quarter, prior to not fees, revenues was period. fourth expect we and

As mix compensation and to transfer ratio firm eligible third increased in quarter a marketing meeting higher due variability year-end and of XX% expenses. costs primarily fees Promotion reminder, sensitive the the in fee T&E, the higher is performance servicing to funds.

meeting-related XX% quarter and pre-COVID ability business the or travel will that by we related Nashville below organic expenses our remains growth particularly to returns, year quarter G&A and business prior X%, the travel in customer continue grow note invest expenses base. same our in we the our see though expect relocation technology-related that to the the third increased continued expand We period where of of service excluding to levels. to In All-in, we support expenses. quarter, and projects XXXX, versus increase in fourth well

consulting services the said, July. incurred returned inflation is range increase. as to and market in data in higher in now to also mid-single-digit the contributing employees return office G&A We with expenses That core

relocation growth-related to We reflecting development related technology inflation quarter remain and expenses, professional expect fees. data elevated, G&A Nashville fourth and product services, market technology costs and expenses and in

we the the We targets. $X million our the other charge within and returns reflecting long-term by once of year are of margin Bernstein acquisition. amortization ago, continue expenses, intangible managing historical invest declined context Within the quarterly from absence to amortization as expenses incremental growth see the good with a associated spend again, for

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

to Third operating up points basis quarter operating our reflecting the as the incremental was of The margin leverage of year-on-year, business. compared XX% margin third XXX quarter period. prior XX.X% year was

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

was effective The rate for third quarter L.P. X.X%. AllianceBernstein tax

with We nearly to rate to employees, an which XX% planned continue and an expect finish of XXX for to our we Nashville, relocation is At way XXXX between our X,XXX. of well. had on X% the going corporate quarter-end, headquarters Nashville-based effective tax X.X%. update of target I’ll

returning the included Nashville and For our to we EMEA, major U.S. new in July, office the which into began downtown offices our headquarters in moving building.

million savings quarter, $X third relocation savings compared related Of $X net increased operating million resulting million, costs. totaled of $X.XX costs expense to net approximately income estimated compensation-related approximately our in For offset per is $X by to transition Nashville a million unit. headquarters $XX increase of the in occupancy $X the corporate [ph] million $X million, or

we approximately be guidance unit, XXXX, each unit per versus prior year expect we thereafter. positive to $X.XX of $X.XX our savings accretion of For and per expect

to the We $XX expect XXXX, transition savings of the million million. be is in annual to ongoing $XX beginning once range over in expense

Now, Seth. I’ll it to back turn

Seth Bernstein

Ali. you, Thank

each on slide with XX. client for of led drove active outlined. Turning annualized with months for X% track nine the commercial we’ve long-term platform year. X% the make the real CLO backing debt goal channel, the organic and healthy Equitable. growth, the secured to In and with our fee third drove in We by our the of progress net quarter we incremental third-party our first third European margins flows to including on priced backed dimensions also are equities growing our previously estate Equitable municipals. third revenue in We and in increase quarter, a rate We continued

distribution have we yield low-rate With of a are for trailing pay we your a pleased $X.XX that, to questions. As a the X% a third low XX-month in quarter will to per environment. for partnership, tax take a robust we relatively rate, unit and

Operator

from is line question first Your Instructions] the of Dan Fannon with [Operator Jefferies.

Rick Roy

had filling is doing question This Rick hope in well today. Roy Dan. you I everyone. I a the on for Hi, alternatives. actually actually guys are

Of guys course, become curious Are channels? was looking demand I just are shown from at have guys highlighted strong you diversified? coming private from flows more And how kind wealth seeing wealth of it you whether you point, growth channel. sort you highlighted? non-private are So, in or of retail real you that those it’s guys guys market that the sort AUM points. European outside curious otherwise, have what estate on raising for fund of funds commercial yes, I on was

Seth Bernstein

alternatives, the Rick, And Thanks, question. sounds really like the private for is industry business thanks and important for as part Sure. of well. on and focusing both it which a growing our

have we north billion broader our recall, $XX now alternatives private business. in So, of

Equitable others lot to and in well wealth grow only roughly a quarter good well that as it being European debt otherwise, in diversified, both, debt business continue well, a now right insurance, and party you particularly. business but very The actually. we’re have -- not in institutional to see mentioned, of partners we well, lending have, then with right AUM perspective, is pace, and also as and now, businesses channel that commercial in very, that channel. as We real institutional is third it’s the U.S. of those middle that of growing well the a expect estate estate and continue as the as from market real as adjacencies we XX% building at we direct business or it. our we have to have a channel private About the in from is a pretty From faith of that

channel. us product as that terms around helps think for both diversification your we well of us. around in corner? of what’s outset, question the lots as high mentioned for as the business. Look, the at in that broader diversification I hopes have we there’s in that So, To corner Again,

but in and grow not down hopefully, as from retail diversify certainly, it both channel well. time to perspective, over a and overnight, continue We the a want to perspective product it line, including

question. So, thanks for the

Operator

Your of Bill next question with comes from line Citigroup. Katz the

Bill Katz

covered Joined a you prepared this so your commentary. I of if couple apologize, have minutes late, may in

announced Equitable. the maybe changed you an Just some coming existing the that? update initiative stand can secondly, recently book third-party terms book, capital the anything? and billion build permanent where not. and change I the But us you leadership there, opportunities in back with even in to does of beyond second $XX maybe One, of give transitioning presume

Seth Bernstein

very much. Thanks Yes. Sure.

on see $XX the a Equitable alternatives. have billion in we So, of our to with capital agreement lot private

that for clients, and we our that Just believe reminder, now we the roughly a deliver be through of is growing right will see our reallocation will they’ve early who business, we that invested a if stages a and now. Bass, around And bear $XX trajectories. runs brought numbers, things went continue to growth most importantly that capital ago, couple our the to remember, in the And rough million That other new about half early to of us think Xx done historically, be and can in shareholders. of also half with you right where that expect at to Matt process Xx of for what to stages quarters we’ve grow.

with or areas to be and classes those that what into, have working want Equitable we asset want they figure into, areas We’re together whether out to obviously, to go grow it that right businesses. expand now we

still we’re that working So, on front.

exactly well the is and planned. going far, so progress very as And

and to that To bigger be the about you’ll alternatives. I virtuous Equitable anything change does both that cycle start plans, of think a expect leadership, AB, XXXX. your in and private change driver to can our about it in question not are specific and in to both hear create the we that growth those very more creating both

Bill Katz

look going the apologize. I But portfolio. I’m your follow-up little up a I saying the color bit? context overall. to as But, the that rate rate rate and you think from appreciate rest just platform should the what of margin And to how maybe grind you guidance perspective? then, asset of quarter? next growth the should and on a And G&A Thanks. unpack as second Okay. you. year, Thank part, gave I can try a does squeeze management the about we Asia-Pac and compare appreciate platform here And added to on certainly you fee you for How given to Asia-Pac’s that fee the unrelatedly, for fourth

Ali Dibadj

maybe Seth chime Why well. and and then don’t I as can start in Ajai

of depends question, from saw quarter of guess, the obviously, we’re you a G&A of slides, think part couple So, the very from the and first again, in the rate hopefully I as to rate right? about the marketplace. part can the fee right into, I saw And we’re little Look, on you perspective products, right delivery be as be year-on-year G&A, from gave will your which of of on a business question, a fee again, product deliver to of the a So, actual with us. spotlight with were region. right? shift you rate, bit board. clients, we the helpful the expect a your the second The mix [ph] some we that fee there the long proud fee believe that’s true end expectations in our across we higher Ajai’s of. this we resistant And a increase. was the the as that have pure the on wonderful XX% will to deliver, in perspective, that that partnership for with deliver rewarded are we’re that managing products your Bill. the that perspective both would tax certainly delivering, And and mix rates From, there And you you if in and things clients us channel from go us, distributors a equities we that at active would for the be that look channels the if to marketplace we products

about at and XX% Nashville look you of in that that hopefully, that. increase We’ve If clear, disaggregate it, telegraphing pretty points was X been relocation.

we this really to XX% something continue of Nashville $X.XX savings we move, like forward to terms already and in approximately Again, savings X% So, growth at the as there. goes be year growth. hope go good delivering positive

those we have make. move that’s part that with of So, investments to

delivering areas. this particular, two disaggregate investments customers. area making of One that year-on-year basis. left we’ve in are I right? we deliberately left In think Now, part deliver our we’re for and on Product kind have, there. X% tell quarter, up. growth that invested decisions, inflationary our development I are into of wish And that some a this with I’ll we’re us, in is not that of to a those are believe choice. digitally a are giving a already, investments X% great That’s want gosh, continue, and that’s of -- a that the that those us deliberate technology I’m We manner. globally crept not the X% peers what well left. clients decisions you there. There in didn’t continue for we perspective are certainly And in all that our have that’s the sure And pressures inconsistent deliberate investments returns more as will to of to from those our would of and say, forward pressures and some It’s right? chunk we inflationary really with that’s is

the mid-single-digit of end high think rate the days. range I inflation about these how the is So,

think I is to mid-single digits. X% So, the X%

end of services, cetera. over That’s see dissipating data like market time. recruiting at that. And et We’re higher the costs, things that’s that things don’t we kind of like

disaggregation in rate question, we be not your think quarter. QX. we’ve the you expect that’s less what that to than about if in And QX, seen year-on-year in would to this growth So, any

north that we in be a of in add. some Seth guys know, what might think your to that other want Ajai, I believe, you things fact, chunks bet don’t for questions. I In to the of QX the growth saw kind getting given year-on-year answers G&A of QX. were it’s the of these Hopefully, would ROIs safe investments

Ajai Kaul

add, and that the to on we bring fee on have point the services also those conversations to focused assets are on, but our rate to demand I average we If there. rate more mix conversations and diversify to and customization. support that’s rate. that fee point the lot about And beneficial not fee continued I sure region, Ali, made those I’m certainly in average that the succeed multi-asset continuing to the services or the should in -- solutions a equity the

Operator

next The with line John of Dunn Evercore. the is from question

John Dunn

Wealth Maybe one on Management. Private

push a medium that in term stool high three worth the kind legacy liking growth? dichotomy contributing and you to between the and also then have guys outflowing You clients legs way talk where net Maybe about we about all term talked products. as can the to new and in in short of a keep pull, are

Kate Burke

$XX think as Sure. Thanks a the of towards for and million a single than rate the faster of which X% we rate we’re And worth But, continue the or sort growing as intentional attributed versus shift of here. question. to This things net that high -- right segmentation. business, around growth is Kate put digits now. we’ve organic couple mix greater, mid organic Burke $XX billion or I to that at the a up of organization, X% is that’s we to doing see largely ultra categorize a rate our strong -- rest sort net growth

these is think pre-liquidity complex, have and is Seth that we’re we around work with to and independent an -- where clients clients, valued really to is, often to one in differentiated have those the We they tend his events. enables the that client doing that and high-value opportunities base. comments this and be those wealth So us and advice advisor messaged

continuing leadership $X is area be thought continue in also allocation do to to see overall broadly, XX% over of drive we into So, even the we’re But well. our portfolio right year-over-year. and the a in with this It’s alternative that. addition little That’s up our that growing the purpose, like to and billion investment ESG things asset making and platform, adopted SMA and now. more

as continues our full earlier business And net have think platform base. to and the That that support being breadth to we doubling core in the the continues that comments movement that terms of You’ve we offering time into very broader to seen we alternatives worth said, mentioned in that ultra high space. development, strong year-over-year. be of

affluent in to continue grow as then core time, continue to traditional us client and different to over we’ll with among in And differentiating improving continue think those and space, -- being different offering a that kind I invest as for well segments. of our you’ll see so segmentation that ultra-high worth net

John Dunn

then, you. looking maybe one out Got And further.

in over of years, be do demand do what you of you you the product-wise? you going that think different might be bunch do And business strategies As -- to the think a China think than Asia, in a rest what market market? it’s build might kind of

Ajai Kaul

Well, itself I market to lends think active management. the

to funds. And an are probably that in and money are heavily fixed market of of There hybrid as off so, with ourselves income funds, number service. the active -- equity we is well focused there different equity market funds services market, would a launch which expect mix leading see in as a

in differentiated we So, be some launch and would equity, multi-asset point, at solution-type the that services customized probably or ones services, China.

see So, the but like you the to that looked we of rest would certainly of the we selling market. services of APAC, probably a what number customize would in are domestic needs

Operator

of next is the Blostein Sachs. Your question Alex from with Goldman line

Sheriq Sumar

is is for quarter. strong This Hi. research Pretty the Bernstein, Sheriq on Alex. in Sumar filling My this revenues. the in question growth

in engagement just much color if even for strategy outside the pretty the segment And seeing as growth provide was Like saw the how increased Asia client within trading in and some U.S. it just versus volumes? Thank what’s to was can and you. can as strong we or as you well? to you U.S. from if this out I client spell So, onboarding more Europe.

Seth Bernstein

in but rise were quarter, Keep Most quarter Thank September was a a where into strongly. choppier volumes to volume, markets, context. -- their we for overall levels bit, in the Seth. It for that in that pretty up down U.S. Hi. activity question. industry Research. mind Asia of third was strong volumes attributable and that the saw Europe particularly It’s you Bernstein were

diversification. us. grow you business, as So, out, given to was it a Asia quite for rapidly point the nice And continues this offset for

were other area which important, we particularly, where research checks services, But, strong in of volume receipt that of are was Europe, seeing for course, is and The we pretty continue. subscription will sensitive.

that we’ve in and And necessarily continue repeating. in spending Look, ourselves to particular focus saw Asia a with Europe. differentiate broadening also we pickup element where strategy our again is time is been in research. so, it in to offerings I And by see volatility our fundamental wouldn’t of unless and

So, approach. distinctive we that feel recognition for business continues the its gain to

have the quality it, that those attached IPO have trading of point a us, business competitive calendar pretty year, of challenges research firms will year, stronger on support to to provided. We remain. of an it’s research people the for a brokerage which particularly but while or strong a want And for the a be prime and view, been we’ve based the business this see, secular

Operator

Robert & comes Woods. line question Keefe, next of Bruyette your And with the from Lee

Robert Lee

Great. you taking Good my for morning. Thank questions.

you growth Just your and you seems just that success you about management ability for of hot of wealth very area was highlighted business, -- that real the with Wealth popular a talk broadly, one tax the quickly. kind broader In the or rolling And loss you’re highlighted Private harvesting out things the more be having portfolio? to interest can industry. of clearly

So, maybe first. that touch on

Kate Burke

there from different is One Yes, a strong can I campaign highlight very Wealth offering had perspective, Wealth from things Bernstein the are tax Private asset have to classes. diverse that start perspective. Well, there. two happening the I that we are think aware across

positioned ways channel. into And in in well that be enabled so, I marketplace. product Private further looking are Wealth very many for that we extensions And that within for think product to has of the that

terms taking In the I’ll further, questions to turn it or Seth on to that. timing or of opine around others

Seth Bernstein

having is beyond think in private opportunities is out I were it could participate. both, that we’re place. and there, looked and wealth area among the at good about thought about That it for form, nicely as an tax also grow us or quite do just question to aggressive publicly grow, a more within to be in we to allowed to was given and I we a -- being Research team And which available it’s what I Look, we our it’s build as RIAs we broadly, really we what and of clients. has on And the said, our because are when was indexing, their we the Bernstein continue business, of in going the we lot. something SMA applications always put where been that think thought much commercial that in think the what us. competition think is fits about in think business management. real there. I Bernstein proud opportunity customized mean, has done how has going focus think which very what And better an to we but this come out But we’re others

Robert Lee

then, just maybe And follow-up. a quick Great.

than your scale, more with buck business. the to U.S., performance specifically it trend do most without And equities that you within footprint -- obviously peers is So, anything maybe curious, could good point in to you any maybe the feel, and whether get retail, Because size, you even some there struggling helps into inflow the success are helped can’t I’m particularly else of it’s kind bit a distribution inflows. of that’s performance do But, performance. just obviously, more? you’ve kind I had active mean, U.S. continuing to your

there? additional any color So,

Seth Bernstein

good question I look, Well, table mean, implies I I performance and is think think your it. stakes,

large with it. growth, attribute. to has purpose a us market, for we clients. had blessed resonate think in maybe also cap And been sustainable which U.S. And player strong that so, U.S. that, important products whether with portfolios domestic thematic real interesting the that’s other We’ve but I the agree or it’s seem beyond are with we of

within And them, strategies have and stream others speaks who for return return building portfolios existing stream have the can’t people to through management. their it we where passive a are replicate developed and differentiated We particularly clients looking diversification who number are model want of models. a that

strength, I our under I and really And very that that’s increasingly while perhaps calling were products tech think But, a I we’ve effort enabled. and and in had our diversification, clients for to we played is value think scale that the domestically. thoughtful given so, equities think

we’re silver and timely more But, think being here. and better efficiencies think I there there’s a with so, clients. And I bullet don’t engaging seeing

I think effectively working it’s functions a very lot of different together.

different if guess, I don’t or know, I a answer. view you my so, Ali, And that’s have additional…

Ali Dibadj

think I that’s No, great.

Operator

you. no time. I’ll at back questions further Griffin, are to call over turn Mr. this There the

Mark Griffin

great any questions. everyone Thank have you, this reach to morning. Investor free and out participating Thanks of Misty. for conference Relations Feel with rest further Goodbye. And day. your call in our a contact

Operator

conference concludes call. today’s This

You disconnect. may now

AllianceBernstein Holding (AB) 28 Oct 212021 Q3 Earnings call transcript