AB Announces August 31, 2024 Assets Under Management

Rhea-AI Summary

AllianceBernstein (NYSE: AB) reported a 2% increase in assets under management (AUM) for August 2024, reaching $791 billion from $777 billion in July. The growth was primarily driven by market appreciation, although partially offset by net outflows. Institutional net outflows exceeded Retail net inflows, while Private Wealth net flows remained relatively stable.

The AUM breakdown shows:

• Equity: $336 billion (42.5% of total AUM)
• Fixed Income: $292 billion (36.9% of total AUM)
• Alternatives/Multi-Asset Solutions: $163 billion (20.6% of total AUM)

Notably, there was a reclassification of $12 billion in Private Placements AUM from Taxable Fixed Income to Alternatives/Multi-Asset as of July 31, 2024.

Positive

• Assets under management increased by 2% to $791 billion
• Market appreciation drove growth in AUM
• Retail channel experienced net inflows

Negative

• Institutional channel experienced net outflows
• Net outflows partially offset market appreciation gains

Insights

Financial Analyst

AllianceBernstein's 2% increase in AUM to $791 billion is a positive indicator, but it's important to note that this growth was primarily driven by market appreciation rather than net inflows. The net outflows in the Institutional channel are a concern, as they offset the net inflows from the Retail segment. This suggests potential challenges in retaining large institutional clients.

The firm's equity AUM saw a notable increase, rising from $331 billion to $336 billion, which could be attributed to the strong market performance in August. The fixed income segment also grew from $285 billion to $292 billion, indicating a balanced growth across asset classes. However, investors should monitor the outflow trends closely in the coming months to assess if this is a temporary fluctuation or a longer-term issue.

Market Research Analyst

The 2% AUM growth outpaced the S&P 500's 1.45% increase in August, suggesting AllianceBernstein's portfolios may have outperformed the broader market. However, the net outflows in the Institutional channel raise questions about the firm's competitive positioning in this important segment.

The reclassification of $12 billion in Private Placements AUM from Taxable Fixed Income to Alternatives/Multi-Asset Solutions is noteworthy. This shift could indicate a strategic move to diversify offerings and potentially capture higher fees associated with alternative investments. Investors should watch for any further reallocation trends and their impact on the firm's revenue mix and profitability in upcoming quarters.

NASHVILLE, Tenn., Sept. 12, 2024 /PRNewswire/ -- AllianceBernstein L.P. ("AB") and AllianceBernstein Holding L.P. ("AB Holding") (NYSE: AB) today announced that preliminary assets under management increased to $791 billion during August 2024 from $777 billion at the end of July. The 2% increase was driven by market appreciation, partially offset by net outflows. By channel, Institutional net outflows outweighed Retail net inflows, while Private Wealth net flows were flattish.   

AllianceBernstein L.P. (The Operating Partnership)
Assets Under Management ($ in Billions)
	At August 31, 2024																Jul 31,
																	2024
									Private
	Institutions				Retail				Wealth				Total				Total
Equity
Actively Managed	$	55			$	158			$	55			$	268			$	264
Passive	24				38				6				68				67
Total Equity	79				196				61				336				331
Fixed Income
Taxable	119				74				18				211				206
Tax-Exempt	2				39				29				70				68
Passive	—				11				—				11				11
Total Fixed Income(2)	121				124				47				292				285
Alternatives/Multi-Asset Solutions(1),(2)	129				8				26				163				161
Total	$	329			$	328				134				791				777
	At July 31, 2024
Total	$	326			$	319			$	132			$	777
(1) Includes certain multi-asset solutions and services not included in equity or fixed income services.
(2) $12 billion of Private Placements AUM was re-classified from Taxable Fixed Income to Alternatives/Multi-Asset, as of July 31, 2024

Cautions Regarding Forward-Looking Statements

Certain statements provided by management in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately-managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions, and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. AB cautions readers to carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; AB undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see "Risk Factors" and "Cautions Regarding Forward-Looking Statements" in AB's Form 10-K for the year ended December 31, 2023 or form 10-Q for the quarter ended June 30, 2024. Any or all of the forward-looking statements made in this news release, Form 10-K, Form 10-Q, other documents AB files with or furnishes to the SEC and any other public statements issued by AB, may turn out to be wrong. It is important to remember that other factors besides those listed in "Risk Factors" and "Cautions Regarding Forward-Looking Statements", and those listed above, could also adversely affect AB's financial condition, results of operations and business prospects.

About AllianceBernstein

AllianceBernstein is a leading global investment management firm that offers  diversified investment services to institutional investors, individuals and private wealth clients in major world markets.

As of June 30, 2024, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 39.6% of AllianceBernstein and Equitable Holdings, Inc. ("EQH"), directly and through various subsidiaries, owned an approximate 61.1% economic interest in AllianceBernstein.

Additional information about AB may be found on our website, www.alliancebernstein.com. 

View original content:https://www.prnewswire.com/news-releases/ab-announces-august-31-2024-assets-under-management-302247031.html

SOURCE AllianceBernstein

FAQ

What was AllianceBernstein's (AB) total AUM as of August 31, 2024?

AllianceBernstein's (AB) total assets under management as of August 31, 2024, were $791 billion.

How much did AB's AUM increase from July to August 2024?

AB's assets under management increased by 2%, from $777 billion in July to $791 billion in August 2024.

What was the main driver of AB's AUM growth in August 2024?

The main driver of AB's AUM growth in August 2024 was market appreciation, partially offset by net outflows.

Which investment channel experienced net inflows for AB in August 2024?

The Retail channel experienced net inflows for AB in August 2024.