Q2 2024 AllianceBernstein Holding LP Earnings Call Transcript
Key Points
- AllianceBernstein Holding LP (AB) reported a 42% increase in second quarter gross sales, reaching $31.9 billion.
- The company's private markets business grew to $64 billion, driven by private credit and real estate equity.
- AB's adjusted operating margin improved to 30.8%, up 380 basis points year-over-year.
- Investment performance improved in equities and remained healthy in fixed income, with 89% of fixed income assets outperforming over the one-year period.
- The firm launched two additional active ETFs, bringing the total to 15 with $4.6 billion in AUM.
- Institutional channel saw net outflows of $1.8 billion, as active equity outflows outweighed insurance-led fixed income growth.
- Despite improvements, the company continues to experience outflows in equities, particularly in institutional strategies like concentrated growth and global core.
- GAAP revenues included a $28 million investment loss from the joint venture with Bernstein Research Services.
- The effective fee rate declined by 2% year-over-year, driven by asset mix changes including growth in lower fee rate munis and money markets.
- Seasonal tax-related selling led to slight net outflows in the private wealth segment, turning an otherwise net inflowing quarter into a $100 million net outflow.
Thank you for standing by, and welcome to the AllianceBernstein second 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, Head of Investor Relations for AB, Mr. Mark Griffin. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to our second quarter 2024 earnings review. This conference call is being webcast and accompanied by a slide presentation that's posted in the Investor Relations section of our website, www.alliancebernstein.com.
With us today to discuss the company's results for the quarter are Seth Bernstein, President and CEO; and Jackie Marks, CFO. Onur Erzan, Head of Global Client Group and Private Wealth, will join us for questions after our prepared remarks.
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