AB - Earnings call transcript Q3 2024 | AllianceBernstein Holding L.P.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the AllianceBernstein Third Quarter 2024 Earnings Review. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay on our website shortly after the conclusion of this call. I would now like to turn the conference over to the host for this call, Vice President of Investor Relations for AB, Mr. Ioanis Jorgali. Please go ahead.

Ioanis Jorgali

Good morning, everyone, and welcome to our third quarter 2024 earnings review. Onur us and Group Global discuss our being for in accompanied of Wealth; the Matt www.alliancebernstein.com. With today questions is presentation a CFO; our call Private Private of remarks. Head are Bass, us of posted results that's Investor after President to and Head Marks, Alternatives, Erzan, CEO; and Jackie conference webcast by Client and and will prepared slide website, Seth This join Bernstein, company's the Relations section

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

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

also we a substitute our unitholders to distribution can the to as our we provide in and our not base language MD&A XX-Q, results, adjusted in our You on of results. addition which safe filed find for harbor which this GAAP our morning. We

reconciliation in Under press to reporting nature Our GAAP so call. adjusted community of from GAAP management the FD, such Regulation and are results questions release, public all during only investment questions may and of standard please forum, a address this material appendix, presentation our a in our ask XX-Q.

it turn Seth. I'll to Now over

Seth Bernstein

us Good morning, thank today. you joining and for

have throughout progress and journey. Today, been end. this a stronger making. We've Over is our in quarter Slide emerge clients, opportunity the express billion distinctive to as a highlighted I'm delivered last to asset and to proposition, each on a positive $XXX flows year of and years, us the company we're colleagues, AllianceBernstein as this redefine in this which several quarter with who has unitholders pleased value leader my management want journey I X. net is a itself and surpassed wealth with take assets to management, under on AB and gratitude supported

and worth, which us markets and an private Asia, U.S. proprietary business. edge includes net We includes distribution Equitable. Private diversified high like is This also our our investment asset can which have our strategic by relationship deliver Wealth growing across classes. in a growing supported clients' platform, our alternative traditional global platform, differentiated insurance. We This gives markets with capabilities

detail margin addition, which a discuss have will into in reflect Jackie improvement, will path results as move for we on clear later, XXXX, market no In our as we deterioration. assuming

Finally, returns to and ensures AB that growth capital disciplined has a approach tax-efficient partnership a prioritizes structure investments. to shareholders

business to Moving quarter highlights. I'll our Slide X. review third

to each organic fixed taxable First, benefit inflows we where fixed income, delivered of $XX more rate. billion our year-to-date, billion taxable and continues asset first by XX% over We've into organically full an reallocations $X totaled from year on XX% XXXX's retail, headline quarter registered flows. American and consecutive inflows active Income grew tax-exempt income than with during growth. to fixed Active higher among demand net of than quarter. inflows billion, nearly managers third XX% led in third $X having income the been the annualized

from active share $X.X Our outweighed U.S. $X.X billion inflows, inflows pockets U.S. ETF Active redemptions billion fund continued Bernstein strength observed into turnaround where our by outflows the year-to-date and institutional of of SMAs, growth for of a for interest value renewed Private strategies. had led muni, Concentrated suite. equity $X equities, third franchise billion gaining demand inflows net into mutual also of over in also with signs retail market and demand is large-cap retail tax-exempt elevated taxable and preliminary Wealth. We're quarter. seeing and retail over we remained our in in in

in and the new channel. platform deepening ones through to forging partnerships we expand continue markets Second, retail our growing private existing

institutional fundings which into Opportunities leasing, month, renewable Credit and level, Last in year-over-year, we to CLOs, driven At Our over the unlisted the the AB billion and broader by deployed billion energy audience. up is quarter, alternative third $XX markets net transition the the fund $X mortgages, private AUM CarVal's aircraft strong announced real XX% strategies. strategies. across reached retail of estate, CarVal launch energy we closed-end an in finance, brings interval expertise Fund, specialty that our

already are leveraging platform sales across X market. teams for Our others. on interval engaged established footprint the fund third-party retail channels, The large and key in our track U.S. with is live

to worth with stabilized, Bernstein leverage this so Management and reminder, quarter base AUM. for has is we're grow line our highlight we saw segment, bringing able third-party expertise U.S. management in retail Wealth assets a market distribution as fee net a been in As third pioneer strategy. A fees forge the that our alternative to high has we rate

we're Finally, in margin office completion New our initiatives, of City the on accretion including York September. steady making our progress relocation

is operating fee adjusted up and have with XXXX, XX.X% further financials no margin. a the X we our deterioration. Slide and year-over-year, performance of the on clear to of summary Our basis points margin will fees, quarter there improvement in of in commentary market rate, is key metrics. page follow-up Jackie XXX reflects more sight provided line

returned performance, banks. X, The and the duration September an X% income. environment in with monetary to major credit other prices U.S. kick-started the moved with curve steepened, U.S. Turning Slide moderating of higher. Fed's in the I'll and Aggregate review Rates footsteps both inflation. starting our easing central cycle pushing the in following investment well performing fixed third in quarter yield the down Index of and Bloomberg bond growth

and XX% continued under for AUM management benefited regime of has X-year credit positioning tight past active and duration yielded duration of in elevated XX% credit the performance our near-term and strong spreads. Our as the management a past periods. Despite X outperformed outperforming the navigated assets volatility, year. are both management active has our XX% successfully our year, the rate we've in of over from and over while exposure clients shift and returns

yield was Relative and XX% the global respectively, also American Income returned in outperformed period. with category X-year and Our high than marquee both outperforming strong the Morningstar its category term Global over its the near strategies and Income XX%, over Morningstar more average X-year income strategies, average, benchmark its period. these of American Yield High while performance

Our constructive. outlook remains

normalization we we bonds fundamentals investors class the on diversification money holdings. the return policy certain, into asset monetary regained market Importantly, becomes their correlations more by healthy credit accelerate their remain value, tapping observed to in expect income as and fixed reallocation large

income While the observed XXXX. as the timing move fixed and with self-evident debatable, is we and cash can the sorting for the swiftly pace the rebalancing of case capital is in

the the equities. value XXX over which large-cap with a to of In strong Among equities, mixed XX%, non-U.S. XX% monetary and outperforming growth. returns Turning caps the outperforming the our market-weighted the China, basis also large-cap AUM measures growth and returning with led posted active outperformed had X emerging the by fiscal over year, quarter by returned announced strategies Russell equal stimulus in remains for performance quarter, XXXX while Small weighted lagged gains as has XX% double-digit over X-year S&P in large-cap third the period. solid following S&P XXX September. Performance delivered in U.S. outperformed equity the our recent XX% U.S., X-year, quarters. X%. markets points

group to outperform However, remain X, XX-year X, the strategy peer and average the over over the returns Morningstar year-to-date periods. absolute and the continues beating long-term, strong,

the and their China, than markets, periods. emerging have X, respective care that more composites outperformed over or We values, and strategies international across X, benchmarks XX mid-cap, or health X-year funds

on the U.S. out in is management value are Our missing are in performing the are U.S. value services underexposed who U.S. passive well. value and spectrum cap large-cap across large-cap investors Active working or experience.

we Over the had $XXX we inflows to ramping of services, client efforts our last and differentiated in million U.S. quarter, increase are value nearly capabilities. awareness up into

In increased addition, service. client activity European RFP growth we're our seeing new for

quarter positive highest posted quarterly growth net inflows Slide its since fifth Now X. and with inflows its of a turning rate. X% straight to Retail XXXX organic had

at in our the and deliver position helped inflows active in by Latin Income across EMEA, annual asset to gains, quarter Global Yield. a $X.X at inflowing income net XX% equities. growing Retail advantageous fixed third were market rate. U.S., rate robust America active annualized and income in positive market of Our billion, in active us gain fixed continue the APAC drive XX% regions. All SMAs American muni total Taxable to and inflows continues retail and or modest taxable inflows share, and High Offshore money excluding led grew competitive all into presence reflecting gains into flows classes flows. XX% growing

and U.S. market X% the Services. the growth. Finally, sequentially, equity organic and into year-over-year and X% of active also of fees flows grew supported was growth continuing Large by of fee-based quarter inflows Select, reflective Chip U.S. addition X% last XX% XXXX. base grew months and Organic fee over Base to XX in growth management third as organically, Growth, Value

rate. X% channel and drive assets shed in billion to X. continue with equity Active Slide totaling to and strategies a flows demand third to Institutions income loss $X.X on weighing at outflows Moving fixed alts. continued the for quarter annualized offsetting redemptions,

Excluding pipeline in the in billion fee end were the continue quarter now pipeline The million that quarter third the pass-through in primarily money $XX.X a fundings mandates fixed outflows, the the higher quarter during taxable fee the $X.X also to down investment on rate $X.X of billion we organic the income with Note third as by $XXX income not declined institutional fundings pipeline at fund mandates captured rate. Lower that quarter. market pipeline rate, at driven X% win as annualized mandates. accelerated billion systematic had grew grade. We fixed in as pipeline. a third with fee our corporate such standing of drove the fee alternative

marketing are the requests income, with for we're uptick equities. gain is notable looking This a We up institutional systematic and good a the indicator pace activity leading client channel continue to future additions. RFP proposals product and inroads make fixed pipeline market for to value, to in share. markets picking emerging where

lower feed our tend impact will be fee and However, these mandates to rate. pipeline

pipeline, expect to As billion pressures. these commitment additions $XX these Equitable's of partially second we some to the offset we add

fee While X% deployments sequentially. is higher the detract from the which and benefit fee that channel's rate, fee pipeline rate up alts

as debt, Within a driven and by the $XXX alternatives growing the a Fundraising posted alternatives the momentum redemptions. our were activity addition third interval pace. rate increased to Private million equity, favored Demand fund. including estate posting channel markets. secondaries. was versus to established driver now Slide and increased real estate X. remain U.S. More at concentrated Turning dynamics tax-exempt, quarter, raised alternatives money organic CarVal key for in year within similar million in Wealth outflows third offset with prior were XX% $XXX growth inflows sales than within of newly annualized modest taxable, in a channel quarter the inflows real by within

income record at the alternatives Adviser quarter-over-quarter. Private defined margin. performance Base in tracking momentum and dividends driver markets productivity private appetite As strong Wealth grew levels we given net year-over-year sales management exposure XXXX. outlook the This for the Wealth expense approach channel's year-end, significant in of reviving. fundraising we XX% is as also Private fees and is risk remain channel interest momentum X% minus a and of cash. fees, constructive interest reflective interest on on and and is

cover Now it to I'll pass to our financial results. Jackie

Jacqueline Marks

you, morning, Seth, and good everyone. Thank

to discipline. focused expense solid continued financial results We the management quarter, growth in reflecting third and deliver in strong fees

Third growth, $X.XX earnings benefiting a of up were markets, organic durable unit sustained versus expansion. quarter rate fee prior from strong and XX% margin the adjusted per year,

unitholders. reminder, of our a we earnings adjusted As to distribute XXX%

our to part the remove certain Turning We considered Slide items results, of business. not show effect which of core our adjusted operating XX.

appendix please financials, were or like-for-like adjusted XX% $XXX and refer the to and Research. GAAP Bernstein of our prior up presentation year XX-Q. versus of our million basis, Net a on reconciliation excluding flat a revenues For

in base average year, prior AUM. increased versus with quarter fees firm-wide line growth Third our the in XX%

$XX declined prior Third quarter of by the period. million, million performance year fees from $X

full along of revenue, now and interest expect outlook within I'll shortly. Dividend broker-dealer which with For $XXX in our to year million, more cash margin $XXX related XXXX, the and performance private million expense cover declined, and detail fees balances we lower reflects interest wealth.

Moving to our expenses.

the $XXX third ratio. total million, a reflecting by compensation Research quarter of declined deconsolidation X% Bernstein and year-over-year, expenses of lower adjusted Our operating

period. $XXX the of ratio net was prior expense of below quarter X% XX.X% year. down compensation We the in XX% total Third the ratio compensation benefits in the had a versus year million, and prior quarter, revenues adjusted

our quarter expenses year servicing prior expenses decreased expected. Promotion accelerated in this of to servicing with Research. expect the XXXX G&A declined execution quarter versus in year was Recall lease will the remain to from the and expect included expense, by XX%. G&A the which in reduction reduction come Bernstein previously XX% expenses at $XX of compensation fourth the line significant our assuming approximately to in guidance. the promotion We of quarter's XX% X% reflecting be in revenues We million ratio full and revenue clearance that prior higher quarter in costs embedded and trade guidance. at period, third as fourth by end now XX%, communicated period, prior our our guide down from year

to We range single-digit continue G&A XXXX to decline basis. a on expect in year-over-year the expenses to full high year mid

reflecting quarter to communicated Third million previously on $X in balances period, by prior debt year seasonally borrowings decreased addition interest debt from approximately the repayments. lower

quarter The reduction tax was which than favorable in contingent effective consideration expected, lower the third for due tax CarVal to approximately the was rate primarily liability. ABLP X%, impact the of

range X% X% a for of guidance to now effective Our is the in prior X%, range of XXXX ABLP's from tax X%. rate to down

trajectory the Now firm-wide of want to Slide rate. focus base our on I fee moving on XX. to

inflows such higher retail American were at retail we strategies fee its There High as firm-wide equities. not XX.X supportive channel class mix some the Active that particularly factors income on all, retail markets third were many quarter cover are key in rate also at lows concentrated fee them Yield fee asset rate the fee our will 'XX, rate, the and As contribution. Equity Offshore outflows supportive, institutional equity rebounding the of include: trends Global their flagship and the our while XXXX points, active in stood enhanced services. level, but can impact appreciation in shifts. capital from given in grew we organically basis and exposure XQ of primarily and Income

fee is saw We funding offering alternatives, impact activity Growing institutional accelerating private which Equitable. a markets our us, with supported priority channel positive partnership on had within rate. strategic the our also a for by

to evolving breakdown industry. Slide XX rate performance fee-conscious remain expect regional private maintained term, dependent in years, some over to fees by and capabilities sales a our our last near few of reflects the versus our strategy product we strategies. erosion a fee the mitigate mix While we witnessed mix our the fee public have across of

largest the bucket. to they as the middle more have performance Private grow our of fees of $XXX past prior versus lending, year, the updated are fees total teens Our than include AB-PCI primary XXXX, in $XXX real also market high rates XXXX strategies at million. Private assuming been to midpoint million guidance in doubled on of track and to years. commercial fee few is performance Investors AB-PCI. the CarVal, Credit These drivers the our performance strategies over debt, known and estate AB or contributor the alternative

fee believe rates traditional more our for future are interest other, strategies a mix. by over we this incremental expect assumes dampen than are lower strategies AB's for of valued of environment. to investors some and estimate of volatile should fees already While private note of and million the fees highly rate recurring we alternative more Performance-related disclosure that the performance interest for market characteristics to from XXXX. market performance million clarify services, $XX public we $XX trajectory lower line hurdle-based fees sight growth, the to have Please

largely AB-PCI No required driven from lead additional we Specifically, from business. of repayment growing contractual sale consistent generate fees. payments. income private to these fees the appreciation generate its loans are markets fees predictable the disclosure greater by this of to Hopefully, performance are or will our underlying interest

Turning to Slide XX.

margins. milestone marked sustainably quarter another our towards higher on path This

adjusted reflecting up at operating deconsolidation markets the our quarter, XX.X%, third the the Research. of improved basis of and points XXX Bernstein year-to-date, As margin from stood benefit

in incremental York on quarter. office $XX noted expense call, lease million early from New our exit we last our previous of As our resulted this

the New XX%. last lease strategy. our relocation We our office margins American been City step in duplicate major North completed the in move nearly expense, York have XQ would September, Excluding

margin we market margin for XXX basis current As markets. operating from a forecast XXX levels, result, potential forward. Based incremental a we points an to expect of going of adjusted with upside XXXX expansion on favorable XX% baseline

scale business. the We margin expansion continue to additional also time as we see over

my investors, their questions. employees, to all to for Operator? stakeholders questions, efforts we that, clients, the made and our efficiently, acknowledge line Before as creating thank our organization. opening business. With and want for can capital are grow we an committed our diversify colleagues while we value have We pleased progress our and your the to allocating significant I currently our answer remain considerable on

Operator

Budish your line comes [Operator Ben Barclays. first Instructions] And question of with the from

Benjamin Budish

appreciate presume flattish maybe It XXXX, in I from on the pickup slightly a could up like updated big rose performance I disclosure fees. if would talk had in AB-PCI. it's you the bit like I was a XXXX. you as intended little wondering looks to rates about generally. be to in looks It performance fees -- more

a talk in fees the consider drivers we What the And strategy? kind come does some What like of you environment? other can may what as the what we more should down? rate that how to factors think Or look So Should like? there? that compression declining about are? a are look bit about little growth rates that see of

Matthew Bass

Happy this to take Matt Hello, Ben. Sure, Bass. the question. is

to we in disclosure would anchor I enhanced terms First, kind what AB-PCI. late last the of back year of on did

think the to in AUM say a lot platform, markets rates they business. an an impact. Base understand are the are drivers kind have most it's to it of the of drivers you those there fees, going the Obviously, represent majority. it's appreciate to the have background performance of private I'd that's fees. have they But a of out growth predictable good I the impact. to behind look, that volume and performance as relates the

as impact course, overall as That's a of and us. spread credit tightened. as had be markets impact. seen kind mark-to-market, going There's private more an of and an markets We've well. well. Spread of is compression public year will That has tailwind that for a forward. So headwind some this been

we a factors. All said, are all So that see that the do consistent those growth. as

with of mandates out you If obviously, have in growth. I'd trend PCI of going fees. a kind mark-to-market, in we've our seen strip forward, not all revenue nice line say incentive

So based with amount on going the of and fees to vary impact performance going AUM forward is we're obviously, that to growing that's channel going where with business.

Benjamin Budish

then maybe think of as else as performance especially announced And kind new potential we see you, the drivers, following out, we private that as September, know launch in markets should what the of same kind largest I do see what future What to the vehicle. adders line? subject, a potential credit up further fees? of democratized on -- you else

Matthew Bass

kind back strategy we've our anchor which of for I'll growth Yes, broadly articulated. to more privates,

existing So Private Many we're AB funds, got in products new fees. have we've launching existing scaling We're In we evergreen of Credit and stable case of performance those Investors, funds. of evergreen be the existing a to going generate channels. launched -- funds.

in target we've our there's extend performance thoughtfully of and our of we're you're where of talked investment-grade channels track nature, more mentioned, look kind retail strategy to be our with Wealth. There's the Bernstein leveraging to kind record insurance, certainly focus Obviously, on lower third, those going in teams lending an focus the to Investors. As big to X side, able addition fees, about We experience those mix spread year. last going the so of across a less insurance Private continue Private given side. to NAV strategies. And the a Credit AB on generate

a on and comfort it's performance going growth So be the a gives organic to fees. mix combination trajectory, of in those us

private and the debt, not of net credit, more performance going generally, think have more fee side, your less grow in it's to insurance we investment-grade a I profile. the

So and channel going mix dependent. to be a it's

Operator

Bill Katz the next comes line with of your And from Cowen. TD question

Robin Holby

was on Katz. touch This if on market Bill private we for is the Holby broader just Robin I could strategy. wondering

billion? well? market's organic there you provide quantify $XXX and I there on private all $XX some the opportunities how could update the as update to the the timeline an growth you are? you AUM, billion Equitable. know just And get of from contribution at in if you could then think from touched the If on where maybe Any you on Maybe current best that

Matthew Bass

it We we've year. we've won't Investor in target. target if Look, longer-term confident got if Day be good strategic business last Equitable's of our partnership, it's but support part in private Equitable's remain linear, wealth. shared the Sure. it's necessarily the I'd as our say

execute of launching right, scaling there the platform existing terms pillars existing but how which get of to that we products as extensions, to complete. new to is kind continue we'll look think channels, M&A, organically, out we've capabilities we In team continue X of evaluate. and on in We'll channels, we well opportunistically, new the across largely terms laid as at those

we a from an of mature It's grow. In the room other being lending private commercial that at for lot lending a corporate market market. direct terms to asset-backed grow of credit, significantly opportunistic what very credit opportunities, the to diversified real in years think past look, credit. And matured market sure. growth direct time, of We the best over was see latter corporate credit private continue the estate, to has continue the XX forms to the and infrastructure, finance, traditional same to diversifying more

attractive very It's CarVal acquisition classes. ago a as reasons that in the of see market behind in is that business we focus one complementary and end also the those asset of years how longer-term growth credit of non-corporate terms So X opportunity.

Soâ€¦

Onur Erzan

Yes. here. And Onur

Equitable, had X a support $XX highlighting. #X, that billion add data we what as on to Matt was know, me you Let points commitment.

of We $XX billion out now. the $XX are only right billion

of record definitely of billion So $XXX in help the X terms 'XX. $X.X the that million. #X, levels wealth, alts raised private in will in we quarters, in achieving first

investment-grade terms couple private already the product the more dollars And fund our vehicles, fund platform, channels And third-party us is growth a We wealth. And definitely seeing of in products that terms have already. highlighted, market. create confidence out we internal traction the touched hundred that in our like launched. in income our to of new gives retail like and in already to you internal all So a then more onboarded in credit. substitute already Matt million on alts insurance of we we given for #X, on, organic fixed profile the we new investments channel, made that private of are

money will definitely part result, channels and platforms side. So see clients in as and the the we the a the with growth story, and coming activity retail the on of be of pre-pipeline new some

Robin Holby

then if Could to just that margin quick you us flat could on the 'XX, remind I might for guidance we on maybe assuming of able expect market follow-up action incremental be And and FY margin a markets. have the NAV?

Jacqueline Marks

the on general, in Just margin yes.

As I said, in the assuming markets. we XX% guided quarter. in XX.X% We've delivered to XXXX, flat

know, As for continue model not scale you we business future. we and the do to our grow And also markets.

In terms of the but specific overcommit. NAV question, I I think we'll have want an have to to don't follow up estimate, afterwards. I

take one if that call okay. the that's we'll So in afterwards,

Operator

question Craig And America. line the Bank of your next comes from with Siegenthaler of

Craig Siegenthaler

After reallocations a here. are long wait, finally the

It then guys are it income given -- do in guys are cuts, seeing active the curve alts, steepens? is, the extension and and just fixed that after you you duration get question business another very performance. activity, but we my appears the step-up some election this think through if get Fed yield additional sadly positioned as you especially reallocations still here So much both your But and not equity. and we for and in could in well mix actually,

Onur Erzan

Craig, this Onur. is

wouldn't Let early into of of definitely, in fixed strength equities, active we also But it. have pass them alternatives. take beneficiaries off. with Yes, mean, right, of I write rotation you're the one we #X, first the in net me and billion seen great $XX fixed I income at income a are inflows.

quarter. retail second equities, we in the know, was flows in franchise and this active had you As net our

our seeing we're channel quite strength least retail. some be definitely diversified. continues to at platform Hence, in So

of your not to definitely of we and to to absolutely, are fixed on steepening franchise, well. our, mention the institutional as definitely we terms of new that further curve, client help allocations and there income, back Going see in and seeing question activity mandates, to terms will insurance the in new again, interest started

of on adjacencies. curve us So other all definitely income fixed carrying of momentum also out but credit, terms classes, broadening starting in other the with will the asset and help the into private steepening in all,

Seth Bernstein

our think on seen will note would that in that play continuing I is see It's as extension duration that's Seth, do where particularly Craig. where in board flows we've just where we're platform. SMA even net seeing the RIAs is take And we demand it that's the you'll as And category, And stronger new really I strong muni to out. the now. where particular U.S.

We been a few flows note also strong as as in are Asia, that years, continues. our today that and in they've

it's active certainly I equity think seeing as we're more the positive Onur And institutional still in and had we where some issues fixed. the underway So side was seeing flows, outflows. albeit were mentioned, on

Craig Siegenthaler

follow-up follow-up op on and margin. the My another -- is expenses

already at we've the paying factor. December a the in and Bernstein on seen headquarters really we for was improvement nice been some big your waiting when former stop So deconsolidation is XXXX Xth But event rent big have you Avenue.

line. X million from months? the of basis bottom lease rate in target of prepared sounds dropping like that us much the XXX point And how and the So to gave that the expansion line drop it remarks, as the of on is it that $XX you million margin sounds expires like $XX run XXX bottom most in the should we to math expect

Jacqueline Marks

the That's correct. for question. you Thank absolutely

it, the Our most to not that, flow through of if to line. of intention all is bottom

Operator

line question the of John Dunn Evercore your And with from next ISI. comes

John Dunn

the about You guys your have third-party talked in with insurers. past increasing business

You mentioned you potential do update investment-grade channel you making And about Can on the sale? how give outlook? go us an and product. this -- highlighted that

Onur Erzan

in insurance in are opportunities. as The we formation with through new news is, traditional engagement momentum, different third-party as the reinsurance through cap and again, the sidecar whether channel Sure. industry our seeing accelerated well good it's commercial

asset a company terms investment on the grade. side competitive their In process property of the activity, add to large to for we instance, for reinsurance and won a roster in recently, casualty management

we rated mortgage strength the and have type on capital-efficient So And market into building created resources market expanded well we middle side. that's lending, back competitive this then the We credit top back. it's companies to an on we What front building raise channel, insurance investments dedicated of new that the portfolio of are right? of example out We private the that, NAV done? of as created we feeders insurance made our extensions dedicated multi-sector for to basically in the of strategies very channel platform. insurance IG-oriented whether as capabilities our finance kind the middle lending wrappers of on strategies, management

with quite we'll spanning third-party into confident strength registered or insurance that into annuity again, of coming us So lifetime addition in product we RILA where, these the helps Equitable channel. some new we money to that in quarter general market, 'XX. Furthermore, new expansion market products space, the the see this more growth benefit indirectly income from in and account in the obviously, directly remain

So drivers continued the Equitable party. expected in those well growth all, in the for as as third us, insurance channel of all the are

Seth Bernstein

the that And it's amongst as either. not seeing well. Asia United just insurers, both here in in in interest and We're Europe States

Onur Erzan

XXX%, obviously, expansion systematic and like, and of Asia, been story to curve that plays have investors fixed nice early we income like the the growing is steepening the including yield a our in they then international really instance, core markets see thing an in in both which franchise and duration the for fixed from have, franchise, into income, Japan.

John Dunn

wealth. private on X maybe then And

beyond you Maybe about channel. that expect could You the in now. already just to talk you inflowing outlook what's stuff working that for start right guys confidence that expressed flows

Matthew Bass

business an first helps our flow on M&A events, John, increase of net when in the appetite sure matters faster-growing kind cash, have our as and basically Like, gradual Private and rates that very for liquidation which seen moving risk coming franchise down a goes activity higher the a we have Wealth in play. monetization owners. the have question. our then from discussed, And the And 'XX. Why thanks the it business. That's we we is with channel. worth numbers terms And into ultra-high seen. down, us? will And there as have we playing basis help turns channel into strong because net it story that Yes, also us more seen a we for all, of in of away flows, come with for activity. M&A does #X, rates have is our the segment of

and October net the or flow we a remain cases, of beyond. And it to our We dividends some take reporting, I then our furthermore, tend optimistic I managers in take add trajectory that. as flows. their clarify in into So terms percentage want conservative a for about to moving something. couple end, result, of a credit flow the calculations take wealth net of might credit And approach. don't in to while flow certain interest, At for

methodology So sometimes apples-to-apples it harder makes make flow comparisons. hence, conservative our net to

Operator

line And question Jefferies. the with Dan your comes next Fannon of from

Ritwik Roy

Fannon. Roy on Dan elsewhere. and And the sets questions, X then Ritwik is focused X on of This for alts X

to X close, to do view, close current the alternatives considering with So on since especially additional appetite And going closed? M&A how guess, have the since CLOs? timeline the you you the given years now dynamic separately, current do beyond do now I offering, on CarVal, that's CarVal market

Matthew Bass

this. Sure. It's Matt. I'll take

opportunistic investment in first over terms got So in the of specifically CarVal, -- conviction the it's terms their operates growth that strong thought we all, opportunity, X closing. markets energy capabilities. capabilities, little space, years if business look, the we in, the got investing finance people, private asset-backed and the the CarVal I'd broadly, post of culture. transition the a And say, We've of we in long-term

all platform. it's of penetrate, vectors, if we're to And as So channels very to the well. growth again, our complementary overall insurance looking retail and kind existing

here the years. the over some broadly. developing the fund, So look, on been mentioned products We on see that to more insurance side, opportunity starting based past the interval credit fund, finance traction we're we've the some X asset-backed traction

the in of key driver long-term remain So convicted growth the as a for very business. kind overall opportunity

Onur Erzan

quarter was CLOs. $X.X on CLOs, strong. third overseas. the billion in priced in multiple U.S. We CLOs, had We very and both the And

pipeline. the is global And through don't flow our thing about CLOs platform. to nature the speaks good CLOs CLO of our that So

So that flows sales through typically.

So that's that a bonus bit of pipeline. the an typically incremental follow don't you in

Ritwik Roy

then if on a on especially China could strategy the talking regions. about growth but the license other out Obviously, organic gears, Japan retail spectrum, of been and earlier year. into And kind also the separating guys, of maybe talking X I source end switch in in then obtaining a the solid to for APAC pretty of you has

kind has the perhaps then for what strategy of Is China -- there And into could to plan is expand also, you AUM go-forward a different there upon Japan any the to expand in If well? channels? as expand strategies? these been region, changes perhaps

Onur Erzan

Yes, sure.

elections, the in momentum. And changes Let not me of with address despite did growth organic that. major In cetera, any some Japan, we et our lose Japan, continues.

equity So our lot helps retail a as touched have that's we great news, with strong a and as well, before. it picture. And on then in institutional presence Japan I

example. our it institutional as systematic been income instance, in adapter fixed For has an of strategies early an

to margin. for fees Japan very with and growth expect I geography healthy to So be a us continue

extensions taxable and of In a for terms ignore region. China, Taiwan, long-term out of to accelerating is as looking region, look growth, the at peers. as know, us, as is and big as very for is Japan accomplished driver ETFs, building a looking continue we of hard has our have rest it of past, additional laid you sizable to our the in at given fixed in income blocks we we also us, that our Asia's private for credits play for a like in Asia, that many been growth

you We business. the worst got the of markets. in we and Very pleased it's one December was probably one our start-up which a that the only launched first As April, IPO. license with in times XXXX, equity performance just the of in remember,

us, to to top point. capital in are ways low I an long-term strategy not it's think at breakeven. gatherer, very evaluate decile that a It's a investment time, for the asset the continue that at levels and outsized we to to it raise see time what China our was accelerate albeit play. And

term, to our long-term or very going short revenue no in accretive to it sizable strategy. in earnings has be potential. a It's the So major but not our changes

Ritwik Roy

CarVal. perhaps X you certain Or updated on I'm there. the contingent guidance expression the that guidance, made that I appreciate were to liability, at quick could relative tax an incorrect And just when obligations interest on of if impacted tax color to time for one related expand the CarVal how if carried deal? the is on The perhaps future accounting there?

Matthew Bass

Sure. the the tax but specifics, to at And contingent the I'll related out. time to let Jackie chime consideration of acquisition is in earn the this on

growth at raising change. the behind certainly slower That being capital And on initially, longer, pushed we quarterly although certainly, that's kind was cycles of deployment look out, picking a with liability some up. of the So basis. contingent net this

real So in. it's I in terms as of classes, considered in particularly conviction, growing the I to channels asset-backed and we're all business have we still energy if private think where and space, transition that the mentioned, -- we're up grow asset set

kind our was existing of investment acquisition, the So as strategies, the thesis behind with capabilities, capital origination capabilities leverage new really which again, well. all cost team's to lower consistent into to channels

Jacqueline Marks

is nature have tax with just that yes, do the And write-down really anything the of because solely on piece, add quarter. in doesn't therefore, carry. to to to the It's onetime tax the this and

Operator

And your with line of the question Alex comes next Sachs. Blostein from Goldman

Unknown Analyst

in This is actually Alex. Aditya for filling

you Just do of are set to a the How clients here? this dialogues from having assess question. are active What and the opportunity product? with for broad appetite the type view that you channels ETF intermediary

Onur Erzan

Sure.

Let me that. take

this This ETFs Very in, of U.S. products. and had anniversary billion 'XX. AUM more pleased in adopted differences. in X the second success actually given XX widely have We $X-plus with roughly September We all years other of U.S. X our the are been years into active active ETF is the at point, out journey. gate tax given across our

innovation product Our continues.

minimum take our look thematic of the AUM continue the type markets, timing strategies. continue our ETF UBS, to about we well as or capabilities there the broker-dealers And ETF market like wirehouses, whether to We thresholds. be typically managed trajectory news about for large to cetera, in examples. The it's Taiwan explore as to both overseas to Korea buffered think et are added some Merrill, and product time is good to at Morgan, of as risk

the it's Private Wealth in direct longer in the grow then AUM more our you broker-dealer channel, in build other channels, whether to your market, ability own RIA up channel you up. are large the So channel, the channels, goes

opportunity are the passes And strong you minimums. great partners the to as product products remains in making as will with of that we thresholds our AUM SMAs, the Given with and duration the ETFs like that cross-sell ETFs shelf other clearing a channel see us. time more our of for

and net bullish remain a flow for moving will be overall, we us So story forward. that

Seth Bernstein

that think money worth conversions strategies. new of I XX% not is noting from existing $X it's that just billion and

to point, new ideas to some them it's our take space. Just enabled us newer of in apply a and Onur's

we continue and want to worked it's so to And that. push on

Operator

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

Ioanis Jorgali

great joining with any you Please follow-up a if for day. all today. Have you have Thank questions IR.

AllianceBernstein Holding (AB) 24 Oct 242024 Q3 Earnings call transcript