AB - Earnings call transcript Q1 2024 | AllianceBernstein Holding L.P.

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Operator

Thank you for standing by, and welcome to the AllianceBernstein First Quarter 2021 Earnings Review. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay on our website shortly after the conclusion of this call.And I would now like to turn the conference over to the host for this call, Head of Investor Relations for AB, Mr. Mark Griffin. Please go ahead.

Mark Griffin

Thank you, operator. welcome first and review. XXXX everyone, morning, to quarter our earnings Good of us conference and results and in Jackie U.S. that's section webcast is for of the Gessner, Head Marks, website, by Relations This Seth being CEO; presentation the accompanied quarter call Bernstein, the to today discuss a are slide Investor CFO; our company's Mark www.alliancebernstein.com.With President posted and Retail. & of Private after Onur information Wealth join regarding Erzan, Client Head is questions remarks.Some of disclosure. us to rules today our present Group prepared subject certain the Global we'll for and and will forward-looking SEC regulations

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

yesterday. harbor in a may our the can management all call over of material Under only call.Now, find address You Seth. during questions filed so turn from forum, the such in Regulation language community also questions the investment this of FD, our safe ask MD&A please nature public we XX-Q, to which I'll

Seth Bernstein

Good invest than asset multi-asset, the the end, us returns, to with Slide profile with SMA pay offsetting AB's firm-wide by improving specifics, future.Now and venture diversification to outflows. way, morning, overview Generale, drive providing across continue to benefited more alternatives of X, let's equity the $XXX led global with distribution flexibility debt growth cross-broader and joint in margin and down municipal closed the gains us into while future driven strong Research annualized we global flows. million today. from double-digit profit our before fixed proceeds classes strong Bernstein X. areas.Retail a on April and starting get key income quarter balance thank the quarter, market joining coupled the in On geographies to Societe X% using first enabled and In equity broad capabilities market by fixed income AB robust in organic flows you complemented and for share

were first First and organically. Firm-wide sales assets $XX.X X% of fourth increased X% inflows income and Firmwide up were by were sequentially.Slide assets annualized under of driven billion from growth. were billion continued fixed X gross $X trend up or million. end organic first year-over-year ago XX% sequentially, under billion, net period. XX% billion were active share inflows organic both gross $X.X the of year-over-year channel. quarter or XX% X% year Strong up the fixed $XXX our quarter, and billion end flow gain $XX.X billion $XXX X.X% by XX% by shows $X.X management quarterly as sales increased income, we quarter inflows Quarter quarter management annualized retail year-over-year from and average the XX% equities.Net XX% and net in to or

would over and early yields. in Corporates the quarter. performance rates, when in market most in shown gross on inflows of asset Wealth, outflows strong $X.X S&P standout over XX% and assets indexing mid-March to period returns U.S. had performances across low posted and associated quarter, enthusiasm double-digit fixed X channel timing quarter in is artificial begin XX% retail.Turning organic outperformed economy, the and annualized to reflecting remained X performance investors the subsequently income some This strong, of AB's record XX% this magnitude returns XXX with change.Meanwhile, locked widely began growth performance year easing, first included translated ended our in with a Private up bond were X. sales flat billion environment, returns cut risk both strong intelligence, and those credit X prior and In higher some sales by year with ongoing large our Slide quarter over fee $XXX munis, new led with income $X.X of billion, outperforming than fixed showed base assets with proprietary evidence billion, assets and outlook of pace periods. benchmarks billion performance X resilient to ETFs.Investment including outperformed a direct partial XX.X%, up equity Global volatility albeit Government equities. around in held X.Our markets AUM net at more issuance $X.X and the institutional to Starting fund, quarterly rallying when views quarter. falling with income. of a the for to monetary We amidst while for redemption. by by a fundamentally-driven while fixed performance first at outperformed from strategies equity both both outperformed the several as million, in the expected. the dispersion year reflected passive Government exemplified XX% X a banks initially bond the periods. slower improvement Our the as periods. period, were gross XX% Net encouraged $X Magnificent of investment over central steady X-year came

rates XX% of in Morningstar several for competitive of our which and X, an outflows income Relative strategies, client higher value seeing Client and both environment, specific Slide rate an United rate despite quarters, within recognized. in given shift slightly The received XX% flows annualized their and improvement highest long-term billion, from strategies taxable renewed up performance thematic, reached inflows XXXX in ticking We're products of negative organically reflected we the subsided [Technical during Sustained SMid-cap $X.X XX% quarterly fundings signs have American with to supplemented sequential quarter.That $XXX billion, experience channels, rebalancing equity income year to income and reflected to in our outflows X. net improved U.S. gain annualized since XXXX. resurgent $X million geographic Gross sales global billion U.S. client cap the that marking equity a group continue rebounded. in X exemplified income, contributed were underperformance some Asian the breadth highest rate as Active XX% growth inflows redemption X peers, quarter. the the while from in review value, inflows net in organic strong of performance by for XX% the the example said, quarter.In and We and record I'll a inflows upgrade markets peer beginning with periods, inflows in sustainable of large consultancy the mandate net X, Net level yield.Munis to money as being both prior grew volatility reengagement demand and a approaching States. net Japan redemptions year. posted into Difficulty] sequentially strong of which we respectively.Now redemption posted is at versus outperformed U.S. inflows to we by while levels. allocations, equities. for record to growth on led XX% fixed investors retail the high from over fixed $X.X the the rate. global XX%, assets

retail will today hear Slide remarkable You'll growth and on from of you the who Head in our outlook progress U.S. X. to U.S. Institutional channel.Turning walk Mark our through Gessner, Retail,

this at million versus the grown $X XX% ago. X CLO XX% period.Our AB and during mortgages, a of CarVal, Alt XX% $XXX bolstered $XXX funded residential were has our flows fee The representing multi-asset sequentially. period. equities, gross billion, XX acquisition redemption. channel concentrated quarter lifting low-fee million million this saw years for up a AUM, of the Flows Equitable. end, last CarVal passive are First $XX.X which XX and a billion in billion quarter were by of now periods. rate channel is pipeline $XXX partial multi-asset $X.X XX% prior including was XX% AB $X.X sales Alternative in Outflows our over at quarters, up by from latter down equity billion reflected were CAGR, positive by

now year. U.S. $XX First new and $XXX we quarter XX% value million lending markets million Low U.S. U.S. in grade. funded expect the over $XXX NAV strategy $XXX $XXX include in us and this credit first completed will million pipeline Private AB and million in initial deployed investors' Vol. fundings Notable it systematic for of additions by included Equitable Equitable's private program be for SMID billion half is investment

billion and Private the Slide over extend few on years.Moving second next expected $XX Wealth to thereafter is to commence X. The

First strong sales FA promotions, posted key quarter million. gross our of municipals XXXX, sales in track and of remains $X.X our on growth headcount in $XXX part billion invest resulted a Strategy, Direct internal with We in strategy. inflows now ETFs. productivity net continue for solid, Indexing in to Proprietary of AUM, including and we mid-single-digit Advisor billion $X.X

external Slide including in partners.I'll our of with We alternatives private have the ramp XX. second strategies, and with CarVal side a select X launches on business slate the our Strategies, AB sell Evergreen quarter, overview beginning slated finish diverse to

we'll With on joint the time April venture on the be last close of reporting the this separately Bernstein X, Research. is

$X.X Performance for Research is quarter improvement Bernstein's income SocGen's our which great the of plus X% of effort close all through through We under AUM; of the prime First capital future prior much joint ETFs, organic X% our global ownership the was derivatives saw was taxable billion, offerings, were deal equities and on of improved slide.I'll posted with Asia, walk including remains. Bernstein now fixed though products, financial steadily, $XX XX. of time Jackie while and conclude Generale's continue Bittersweet, $XX the experience high-quality progress municipal proud retail, down grow modest we by impact over organically, strong Slide municipals. opportunity equity up of growth, subdued. markets will differentiated by Societe to X% and years, are growth by research specifics in status led in fixed in effort The annualized million driven We over grew up shortly, activity which by built both culmination modeling XX% leverage trading tax-efficient on the the global Bernstein's excited colleagues.We're billion to in to in the periods. for remained talented at year-over-year; accompanying income.We expended including the many revenues majority private for reviewing though outstanding both strategic active periods markets, and venture on initiatives summarized and a brokerage. our

of XX%.Now basis U.S. and call the quarter growth over $X.XX distributions First operating operating Mark the margin and exceeded pleased in points, per Mark? XXX to were rose our earnings unitholder turn unit I'm Gessner to income retail XX%, platform. to up discuss adjusted year-over-year, up XX%

Mark Gessner

strategy. Thanks, excited Seth, well and Retail U.S. growth good retail U.S. discuss positioned channel. the to everyone. and is its in AB for our growth platform morning, I'm with you

track market through strong have of success cycles. We a record

operating are We have of of to to we continually investors Slide changing evolving vehicle us growth from pools needs.Turning and invest their strength, position XX. while increased in our partners, meet a needs distribution asset to allowing future the the access to advisors, and types large to meet and market's

share U.S. X demonstrated Retail a Over of the market last record track consistent our gains. has years, platform

As shown adding the left-hand compound XX% $XX on grown period. sales X the the has annual net side, years a growth this over rate.We flows generated billion XX% compound organic rate. at side, annual period, growth, right of AUM, X% growth have taking -hand shown market straight cumulatively, grown over on at in averaging have share

we deep Organic key for In enjoy fact, driven us advantage X versus AUM to now AUM of than have performance. than growth in years with channels. to accounting significant ago.Turning U.S. across more Slide this CITs any of primarily have low allowing pool various SMAs growth a with double-digit other quarter diversification, and rates.On and half through Most relationships large established net vehicle assets larger high aggregate. to to has flows the distributors, highlighted of been represents channels XX. region added market. We relationships experienced single right, retail key growing nearly market examples the take of

than at double-digit Likewise, XX% faster grown. hybrid this space, consistent Our a a RIA a seeing that growth national among channel growth growing is and period. time we from a are have growth broker-dealer grown strong over at independent broker-dealer largest very XX%. wirehouse many rates clients with the we at In others.One the have strong we're relationship theme leading has AUM RIA

AB growing and Importantly, brand leverage. has strong we that can a

productivity market Service made inroads targeting Financial distribution Advisor highlights Buyer decision-makers better leads some professionals community. RIAs example, align management technology opportunity, in For into sales Pro partners, awarded last in service with the in experienced This and we've on improved geographic faster-growing which key clients. multifamily of infrastructure X for productivity by office. targeted key at our highlights professional opportunities by delighted Sales we Citywire recognition the driven years, product investing asset Slide increased were to footprint by the to of with to professionals the XX, the our has win with the channels.That in have growth increasing inform the sales XX% Award in

we've average XX%.Turning sales As with to XX% compounded shown number on increasing the sales the exceeding $X of grown million and Advisors through right, Financial that per XX. by Slide the advisor by growth

been and In their focus vehicles are, our Our at has compound SMAs, grown growth. that needs overall develop investors to accelerated their in where advisors AUM annual growth rate. meet resulting a XX% has

Looking forward, are of out-index XX%. to we to well rate feel positioned category we continue growth the

As U.S. net has seen our Retail $X.X March, an in flows. year-to-date example, platform through muni billion

to excess think growth accounts growth and future tailwinds X,XXX we this retail on ETFs XX. can new our market the our that provide forecasts.Now, us approximately in turning Slide business continued maintain opened while we CITs have why SMA in We our year. nascent, of and more allow robust

are strategy. growth a X-pronged We executing

evolution Direct performance equity growth the taxable tax-efficient overlays differentiated research-driven expect industry-leading accelerating think and with decade the complementary transparency.Secondly, still is municipal client solutions solutions.We active industry-leading innings on innovative top-tier and where the plan by distribution Disruptors tax on were benefits. elevated products our to This formidable equities scalability First, as with and enabling investment relationships approach SMA capitalize demand best employs integrated awards, in awareness ETF training. as fully enjoy leverage and platform and SMAs, early our We products approval advisors, energy we highly next Balanced and a media that includes growth prospecting, Index deliver offices capabilities to advisors the transactions, AI robust municipal AB of SMA which and at innovation, technology AB customized experience launch alternatives, tools platform and innovative we over concepts tax-managed active new of the balanced expand the suite to solutions, in education and personalized launching will digital tax ETF clients bond a distribution platforms, growth ETF largest Active and through infrastructure, bonds, and reach. ETFs, customized differentiated a our coverage Focused home broad pleased tax in our SMAs. our thematic and advantages, and etf.com some and solution in transition XXXX the we strong private and identify of medical disruptors and new advisor reporting in brand home AB client disruptors out including innovative established across with cloud our portfolio award took industrial.And field transition, that beating of competitors. we deep continue

future business.On with of teams specialists foundation for course, our private our sales augmenting addition and lending we shifted of with product laying many ETFs focus of mix the the the growth. where market of our now both who talent we RIA defined cred, with private Slide XX, With private alternatives well breadth span are of successfully towards segment, areas and AB capabilities how sales Over as span X/X force, now account credit and for and include client CarVal, U.S. show needed. specialists our talented along middle both contribution. our alternatives time, on European ABPCI, These have outside we as a

and Oculus.Oculus leading-edge our detail technology technologies advisor sources, integrates data enhanced in improve investments new significant third-party transaction made sales data and by have sales XX enablement proprietary productivity internal tool, We professional infrastructure targeting. to third-party with XX

and in Jackie, turn expands its with growth summary, financials. I'm capabilities capacity.Now will leverages deliver our our excited distribution pleased on capabilities the strategy we're to adoption with that investment and retail over U.S. to effectiveness.In strengths a pleased in it through for Jackie? proven to are rapid continue We walk to who

Jacqueline Marks

Thanks, Mark.

on statement Let's start with the income XX. GAAP Slide

certain increased points. of items our considered my margin $X.XX our provide quarter EPU by XX% in $X.X substitute results, adjusted unitholders focus First not of addition increased GAAP the here remove We core X% year we base a of net to on period. operating remarks income year-over-year.I'll XX% business. GAAP from XX.X% million part billion quarter the our basis adjusted of Operating of $XXX and revenues increased by prior on of XXX GAAP are from in that effect the results, to not for and distribution our operating our as which results. which increased

GAAP are P&L with the year adjusted are revenues increased X% standard prior release reporting XX, and talk XX. financial on beginning reconciliation period. versus revenues. on to million $XXX our I'll the through as of Our On which and GAAP press XX-Q.Our of we a shown presentation XX, appendix, Slide highlights results shown our on adjusted our Net Slide touch in

First versus prior a was XX% X% by quarter AUM rate. year lower base period fees by average the increased offset higher fee as

rate The primarily growth continue with in rate organic combined decreased first reflect driven including of the points trajectory fee XX.X will growth markets.We quarter basis reflecting of money to lower rate expect fee products, movements. X% year-over-year, the mix and munis fee by market organic mix,

performance period. year declined quarter year of with see now $XX XXXX Research million decreased performance period, quarter due primarily of small the fees fees from fees by Bernstein Services $X X% XXXX for prior million in $XX revenues We from levels.First to line from full First international cap. lower year prior million

points basis in Seth expenses deconsolidate were I'll points April the on Bernstein which Bernstein deconsolidation all our margins on the XXX expect by basis. operating to close quarter, business.We increase will will to mentioned, second from adjusted As minutes XXXX, we few a Beginning to an and revenues annualized on X, pleased take we XXX JV Research the basis the Research discuss.

in received be equalization average benefit our JV and be losses slightly quarter accretive used payment to JV business a longer no reduce of of rate EPU. earnings.As quarter to losses $XXX GAAP interest expense, to core investment the debt, earnings. this for Including our equity anticipate gains added was we line the to in in Prior an slightly will dilutive income revenue lower gains net will close, or any will the of back interest the will first the which we to the and which adjusted we million, reflected be the operation, X.X%. be Our adjusted interest is of

flat.Now $XXX essentially All expense year-over-year. quarter First expenses of expenses. X% and to up were million net our of broker-dealer quarter dividend operating revenues total interest adjusted was interest first moving in,

First the total expense been so was prior with year, by benefits markets It more in in investments. we still revenues, by has strategic lower quarter, compensation net prior X% a is and XX.X% and of of quarter global year their period, the adjusted driven offset compensation growth up in XX% the and versus revenues equity X% balancing gains compared year early continued April slightly in are period.U.S. continued increase as first the volatile. with market ratio

approximately expect deconsolidation also Research the in promotion higher and the ratio we at the a reduce will above period conditions, adjust the mutual year.We growth.We XX% note modestly XX% business business to and by Bernstein costs year-over-year year corporate accrue Research only on year's further increased the to trade XXXX business, expenses. average. that may last basis, market with fees. Promotion significantly expenses as and the by U.S. second execution as second of servicing Given a combined with fund clearance to T&E quarter plan second throughout business quarter X had compared decline ratio markets expenses and prior Services to we quarter XX.X%, XX.X% of transfer from level increased growth XX% servicing which in led of retail April compensation compensation the reflecting Bernstein with commensurate higher the

Yards promotion servicing expenses a For recognition basis.G&A we by prior expenses from X% the by $XX.X approximately related the translation. expenses declined calendar as location partially by State new expect Tennessee offset well in higher the year primarily by The one-time of period. adverse and Hudson on the million the $X XXXX, of in of rent the expense, quarter to decline grant million quarter quarterly FX versus This data XX% and Nashville as relocation. market to year benefited year-over-year additional was a first driven

quarter adjusted the G&A by decline reflecting year prior expect full XX% million expenses XXXX quarter the $XXX to deconsolidation.First and single operating income year period. in second We year-over-year, digits of Bernstein increased versus the mid-to-high by

prior XX.X% basis $X points First by quarter primarily income operating driven interest the rates. expense the year-over-year. by operating higher increased by line, adjusted margin period, increased adjusted year of first Below interest XXX quarter million in

Going appendix of expense. our EPU the first excludes paydown.As the expense earnings GAAP expect due we presentation, $XX debt acquisition-related acquisition-related quarter, certain first Non-GAAP which not expenses. quarter interest due earnings are of in business our In recent above EPU, primarily above $X.XX outlined to adjusted were forward, the million reflecting and core to operations. part to earnings GAAP decline operating was the operating expenses interest items

The first quarter effective tax rate for ABLP was X.X%.

Bernstein ABLPs million in tax X.X%, of effective a for to of our in XXXX. guidance quarter the Nashville item last to we the range venture. $XX tax savings XXXX quarter, X% in joint a from Our remains XXXX, be realized in rate X.X%.As second normalized the would X% range effective inclusive Post of noted relocation one-time at tax rate of

Operator? and at realize December in full remain the XXXX.With XXXX the in will $XX for we pleased your year questions. the answer to Avenue Americas full the approximately expiry lease are XXXX to million annualized that, it accretive of track expect XXXX, on We following of savings are

Operator

our We TD from take Instructions] will [Operator question Bill Katz with first Cowen.

William Katz

get, you the story Just the or of with the parts just if Seth without flight one maybe of update way the was sort the Jackie, action? market of impact path, wondering, end moving given could the you margins or I margin all here, to think either from

Jacqueline Marks

with we're continuing expectations. our Bill,

add about. we XXX the have basis that flight Nashville talked and incremental, relocation we As basis previously in including that we've the things XXX points items to said will other have points several that

have that not changed We guidance.

continuing initiatives but scale how and continue to and we're will we're strategic Of see the investing to that opportunities course, evaluating evaluate return. efficiencies they beyond in and that, we

William Katz

impact? the quarter a In your the the reported clarification. that. back is quarter? number the for state guidance from for Is just G&A adding and thank you in Or first the from that benefit And or first that second one-time

Jacqueline Marks

million time, obviously I and which your it to is of regards million. recurring, offset So, throughout Hudson is the is That in rent credit rent first in the not that the think Tennessee Yards, quarter. dual does for but one question the is increased expense year, $XX.X the $XX actually

an is that well. offset So as

William Katz

guidance is, I'm from Just So add double that change through to just the count? sorry, report that first -- I the I don't to your reduction? just the need to back go do before, on Is I sequential this. make think, want sure or

Jacqueline Marks

Yes.

you're So year-over-year talking versus we're QX -- QX?

William Katz

first. quarter on take just We actual you It's like. quarter Well, guidance versus the just, G&A first number? on can if is this your offline second

Jacqueline Marks

Yes.

William Katz

Okay.

Jacqueline Marks

yes, Well guidance nuanced, I --well, our think a [Indiscernible] little over guidance but QX. bit our is remains QX

William Katz

this Okay, you fantastic. Mark, disclosure And for the Seth extra thank morning. or

the in democratization on opportunity question the side. a Just

number of do on like, distribution you products see out have there's growth, scale. et a growth analytics. trying do say, let's the some terms of that because number and the sort and the whole sophisticated in players many A maybe the strengthening a the How number the for focused data sort And installed terms world, then instance, including are of you of managers alternative evolution direct of a here size cetera, opportunity. longer-term really see to you of of in same here driving players players the opportunity for market winners maybe listed such more share? benefit, lending of for BDC in alliances can all You of go and of sort of how incremental how more

Seth Bernstein

in I differentiated unlike here some and third-party team. thing across tag our unique of Private Bill, us competitors that happy in can U.S. and Mark very our to play Wealth channel makes channels, multiple business. U.S. our and retail The we proprietary jump I'm and is,

ultra-high net a worth with are in clients.We for alternative launching As BDCs experienced and for and instance, -- Wealth worth and structures, strategies U.S. net high we our had result, private other in very Private other credit channel.

we point. $XX reminder, Alts to in Private that make our have Wealth, a in As billion

expertise into strong applying are partnerships. now We distribution that leveraging our retail, U.S.

with have we wirehouses, IBDs. strong mentioned, Mark momentum of partners, distribution As large large a large number

funds distribution we interval that for then partners.And having we pipeline, our quarter, another BDC Wealth cut on non-traded a our back have multiplier strong in scale in Private first including effect the that, NAV leveraging the the the the that opens vehicle. of possibilities With perpetual for from and

U.S. scale we in retail. organic So all sales or with growth X rate globally, [Indiscernible] positive also as We strong in all, But the franchise. combined also given Part our products in time, in competitive multichannel to private will quite in channels, retail we the the global experience recognize like Asia in unique same of terms and our our see our market our trends. prospects remain credit applied given at private strengths, expanding with Alts BDC the of franchise, some gaining the share these can and and

Operator

take next question Fannon Dan from with our We'll Jefferies.

Daniel Fannon

kind channels, going opportunity maybe area look you of the forward kind the biggest you could at about when was appreciate think XX, I you the of details. you where different the these set, where opportunity of hoping Mark, based for Slide biggest on growth, AB? think see from

Mark Gessner

a growth Yes. Look, across I Onur's think it's to point. multipronged strategy channel,

I think the the in where households independent great take the in wirehouses, is, the dealer. households and where worth tend with net but high traditional broker growth RIA net worth place relationships to we have high

vehicles, pools money the are ETF and eyes those.So as investment that's whether SMA, a and biggest here on we I with new it's research are formed Alts. think from I set new upside the think really probably across have of differentiated product

in segment, outpace growth that in So area. that I growth expect our to that specific

Daniel Fannon

generally ago a Seth, more just starting conversations, year the products little opportunities And just seeing you opportunity traction. to some compare the that's in broadly the that where gain terms come then in talk was you institutional today, hoping really of the that could bit. things engagement, are maybe see market, potential and to wins the for down pipeline, about maybe, obviously But kind of a on

Seth Bernstein

I'm Thanks, we're around contribute. Dan. Onur seeing going And more fixed to income. But conversations to ask

would fixed are think us. celebrating We activity people are activity a is is CD table. guess I that it uncertainty [ what for valuations. albeit as on there, perspective large but until seeing activity just seeing vehicles across income we're Fed more but smaller have than we out have that trying more easing that awarded, toward products are which the our finally, end quarter, actually slower have of seeing new reallocations area, we're and a probably events component seeing And hit the the search I searches, value would it's move think it equity activity there. It mixed also of will the That a they're new the highlighted doing of flagging of today. in then its are plans the CarVal.So, we into and horizon. we're think which well I we pretty so private we're think a last would fully seeing from a couple I equity into seen U.S., which equities the of people with won't well frankly, We in across seeing I And, the the Asia their now XXth on year.But as of I take think, interest are not are for funded ] Europe be function, just fact number equities of we risk institutionally there.And the see to that's very -- mandates be We've continue off alternatives anniversary. investors, credit the episodic again, of mode, thought targets of but as to has already our which we said, emerged, we private days, also underlying these number when

so over Onur let turn And for me maybe it to more color.

Onur Erzan

Yes. that No, a great was summary.

very pleased positive growth, and are sales We our -over institutional the sequentially both sales with trajectory, -year. year

we prospects of insurance. terms be the very to excited dynamics, about In in continue our segment

new in the to think going new across example That's much as have think we was to that with a is that, started private Insurance hire, clients versus that strong the insurance income the existing, an a of year then, lending new referenced of market. build insurance an active, will of NAV maybe the story, Seth our more from engagement to heavy to Cornell, are be great a seeing our credit out earlier. vertical. very fixed new continue funding continue ago, We in and of with solutions one Geoff the quite I We demand spectrum.I along PCI and terms be is of solution, engagement credit. that And that team. sector part what that lead we space us, insurance-friendly we made as platform private which and And strong example

starting new the and Equitable. we the are in of with Some using market clients, our with insurance innovation it realizing

Operator

from We'll next our question with take Luke Bianculli Sachs. Goldman

Luke Bianculli

equity for rate away square just the we you thinking Appreciate just the fee about If forward? how us could help how dig trajectory earlier. frame the the a on fee trying would into commentary stronger would have to I despite understand been quarters can rate of I that minute, recent be which I'm you're have maybe going in declines to all which inflows institutional higher income rate outflows, and fee flows, thought base tailwinds. rate markets. American about versus retail of fee think to

just your like would thoughts there. to So, get

Jacqueline Marks

my expect as mix remarks, organic with continue I fee will growth we mentioned and to rate market trajectory in movements. the reflect of combined the Well,

rates as of a time. is at fee as we the in supportive I the pipeline, the fee continue Xx We favorable was mix have based. higher is which institutional really XX% average, quarter base -- rates from to enjoy down mix fee But channel fee points active basis will our and X% Alts well, rate be the XX fee over we expect mentioned,

Luke Bianculli

you. Got

this Appreciate business quick always super retail the teaching the on quarter, helpful. slides one. Okay. One

the impact segment an pace client a guess, expense we And sorry, XXXX? post hires? How of trajectory? multiparter I do I you of about specialists. how think the the growth the hiring, highlighted You anticipate flow -- the same expected would And in keep here, eventual through to up to but know XXXX do hiring slowdown

Onur Erzan

in. here. based the Let me jump revenue on trajectory. our basically Onur pace We hiring

along global up. business our of U.S. the If with revenue at our retail is business, you our look retail year-over-year, rest trending

ability more hiring always hires is than of think up of digest result, we some the to new and I have XX%.So net the additions. mixed the around headcount new some a it's as

different our specialists furthermore, And take attrition always of to organization, add have to as view. So parts about we a mix. when the then in sales we sometimes more the bias it, think is we forward-looking

consecutive revenue when growth, of products months months.So our the billion comes available, like to and resources which we to now had get it of $X.X and only the opportunity becoming add to we early As parts are still see XX old, new Mark ETFs, years XX more these are X mentioned, obviously, in more and we out are our things when at with of it. see sales we we S-curve

pace can I think our expenses outlook as or a trajectory. with it's our as guidance, know an more revenue So in principle. but hiring overall, that's precise and I not our line we guiding

Operator

next ISI. John Evercore question Dunn from take We'll with our

John Dunn

sales Alts Maybe more just you Private little SMAs, and granularity but demand and Wealth, are maybe on a on ETFs, gross where mentioned coming from?

Onur Erzan

John? Private Yes. In Wealth,

we in So, family replicates, asset Wealth, platform diverse obviously, clients. and product the institutional that in very high-net-worth, our of office a essence, ultra-high-net-worth Private allocations have diverse

of second, launch demand, third, In in in perspective, XXXX in different year and heavier what momentum. pleased versus That impact XXXX, by and sales From quite a than fourth had sometimes the timing the Alts of and a strong that, QX. might product in record quarter way, with we is we we Alts the raising this terms the had year are assets. track the definitely

example. strategy are about, have we in CarVal's flagship like launched coming quarter, We the which as pleased So an several first fundraises, important second funds that we close. to

bucket that the Private trajectory products. the market the some of product well Alts provide. side the will you protection the as have private external with appreciate And innovating overall, uncertainty, been structural Wealth.Second, on So equity see solutions internal as buffered we in in clients upward both given there,

ETF solution PAT clients our a greater now direct tremendous had optimization contributor that $X with Buffered tops And strategy. ] taxes that. proprietary of are are kind a deal finally, billion [ to in new as capital indexing gains, evergreen is Our approaching then definitely we run, and

in broadly of optimization as So speaking, tax kind [ like multi-asset I as well ] SMAs some smart would Alts, the tax structured of PAT. more solutions say,

John Dunn

Right.

like, doing rate about you Can great. how investors American been environment? Income then, current think has and obviously, kind the of Okay, it contextualize in

Onur Erzan

product sure. XXth with very Income strong in Yes, in its yearly of in flagship kind followership is anniversary. Asia. It It long-standing our American markets AIP had has Asia. a multiple strategy been

you in deposit have higher in instance, is the different. trends you might As have environment, different when rates. like higher rate however, consumer Asia, geographically, substitution In for Europe, higher see we know, you a behavior

the that to high Asian we a quarter a AIP not has investors those been like in flows it track. And And hence, share have despite environment. cross-border the that demand provides.So like for income, first seen relatively capturing interest result, as a our rate product, huge of strong it's results. change we contributor

Seth Bernstein

I'd deposit more just factor add which inflows we're net that for is in yielding and an that marketplace, than it's Asia product. rate, seeing still important from that

So continue not but see in backup to were obviously, a the given regularly. drop, as we as before, interest we rate much expectations on

Operator

I no are the questions further turn you. Mr. there to back And time. this Griffin, over call at

Mark Griffin

for call. Okay. our Thanks, joining everyone,

to reach great If free to please have any Relations. a feel Investor out day. you Have further questions,

Operator

may Thank does disconnect. you. today, now you you today's conclude Thank That for and participation your presentation.

AllianceBernstein Holding (AB) 26 Apr 242024 Q1 Earnings call transcript