AB Announces December 31, 2024 Assets Under Management

Rhea-AI Summary

AllianceBernstein (AB) reported a decrease in assets under management (AUM) to $792 billion in December 2024, down from $813 billion in November, representing a 2.6% decline. The decrease was attributed to market depreciation and net outflows across all three channels: Institutions, Retail, and Private Wealth.

For Q4 2024, preliminary firmwide net outflows totaled $5.0 billion. The AUM breakdown shows: Equity at $332 billion (Active: $264B, Passive: $68B), Fixed Income at $296 billion (Taxable: $210B, Tax-Exempt: $76B, Passive: $10B), and Alternatives/Multi-Asset Solutions at $164 billion.

Positive

• None.

Negative

• AUM decreased by 2.6% from $813B to $792B in December 2024
• Net outflows recorded across all three business channels
• Q4 2024 preliminary firmwide net outflows of $5.0 billion
• Market depreciation impacted AUM negatively

Insights

Asset Management Analyst

The $21 billion decline in AllianceBernstein's AUM during December 2024, dropping from $813 billion to $792 billion, represents a concerning trend. The 2.6% monthly decrease was driven by both market depreciation and net outflows across all business segments. Most notably, the $5.0 billion in quarterly net outflows signals potential client dissatisfaction or reallocation strategies.

Breaking down the changes: Equity AUM declined by $11 billion, Fixed Income decreased by $7 billion and Alternatives/Multi-Asset Solutions fell by $3 billion. The Institutional channel, traditionally AB's strongest segment, saw a $10 billion reduction, highlighting broader challenges in retaining institutional mandates. The consistent outflows across all three distribution channels suggest systemic rather than isolated issues.

For context, this performance puts AB at risk of falling below the important $800 billion AUM threshold, which could impact fee revenue and operational leverage. The combination of market depreciation and client withdrawals in December typically indicates year-end portfolio rebalancing, but the magnitude suggests deeper underlying challenges.

Financial Markets Strategist

The December AUM decline reflects broader market dynamics affecting asset managers. The outflows in actively managed equity strategies ($8 billion decrease) versus passive strategies ($3 billion decrease) underscore the ongoing industry shift toward lower-cost investment vehicles. The fixed income segment's $7 billion reduction, particularly in taxable products, suggests defensive positioning amid uncertain interest rate trajectories.

Competitive pressures in the asset management industry are intensifying, with AB's fee compression likely to accelerate given the AUM decline. The Private Wealth segment's contraction from $140 billion to $137 billion is particularly concerning, as this high-margin business typically demonstrates greater stability. This could foreshadow margin pressure in upcoming quarterly results.

NASHVILLE, Tenn., Jan. 13, 2025 /PRNewswire/ -- AllianceBernstein L.P. ("AB") and AllianceBernstein Holding L.P. ("AB Holding") (NYSE: AB) today announced that preliminary assets under management decreased to $792 billion during December 2024 from $813 billion at the end of November. Market depreciation, coupled with net outflows across all three channels (Institutions, Retail and Private Wealth), resulted in a 2.6% decline in month-end AUM during the month of December. For the quarter-ended December 2024, preliminary firmwide net outflows totaled $5.0 billion. 

AllianceBernstein L.P. (The Operating Partnership)
Assets Under Management ($ in Billions)
	At December 31, 2024																Nov 30,
																	2024
									Private
	Institutions				Retail				Wealth				Total				Total
Equity
Actively Managed	$	49			$	161			$	54			$	264			$	272
Passive	25				37				6				68				71
Total Equity	74				198				60				332				343
Fixed Income
Taxable	117				74				19				210				215
Tax-Exempt	1				45				30				76				77
Passive	—				10				—				10				11
Total Fixed Income	118				129				49				296				303
Alternatives/Multi-Asset Solutions(1)	129				7				28				164				167
Total	$	321			$	334				137				792				813
	At November 30, 2024
Total	$	331			$	342			$	140			$	813
(1) Includes certain multi-asset solutions and services not included in equity or fixed income services.

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 September 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 December 31, 2024, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 37.5% of AllianceBernstein and Equitable Holdings, Inc. ("EQH"), directly and through various subsidiaries, owned an approximate 61.9% 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-december-31-2024-assets-under-management-302349610.html

SOURCE AllianceBernstein

FAQ

What caused AB's AUM decline in December 2024?

AB's AUM decline in December 2024 was caused by market depreciation and net outflows across all three channels (Institutions, Retail, and Private Wealth), resulting in a 2.6% decrease from $813 billion to $792 billion.

How much were AB's net outflows in Q4 2024?

AB reported preliminary firmwide net outflows of $5.0 billion for the quarter ended December 2024.

What is the breakdown of AB's equity AUM as of December 2024?

As of December 2024, AB's equity AUM totaled $332 billion, consisting of $264 billion in actively managed funds and $68 billion in passive investments.

How is AB's fixed income AUM distributed as of December 2024?

AB's fixed income AUM totaled $296 billion, divided into $210 billion in taxable bonds, $76 billion in tax-exempt bonds, and $10 billion in passive fixed income investments.