AB Announces January 31, 2024 Assets Under Management

Rhea-AI Summary

AllianceBernstein L.P. and AllianceBernstein Holding L.P. announced a slight increase in assets under management to $726 billion in January 2024 from $725 billion in December 2023. The growth was driven by market gains but partially offset by net outflows from Institutions and Private Wealth. The breakdown of AUM by asset class shows a total of $309 billion in Equity, $281 billion in Fixed Income, and $136 billion in Alternatives/Multi-Asset Solutions.

Insights

Financial Analyst

The reported increase in AllianceBernstein's assets under management (AUM) to $726 billion, a marginal rise from the previous month, indicates a stable asset growth trajectory for the firm. This growth, attributed to market gains, is a positive signal for investors, reflecting the firm's capacity to capitalize on favorable market conditions. However, the mention of net outflows, particularly from Institutions and Private Wealth channels, raises concerns about client retention and potential shifts in investor confidence.

From a financial perspective, the stability in Retail inflows against the backdrop of outflows in other channels may suggest a diversification of the client base, which can be a strategic hedge against volatility in institutional investments. The breakdown of AUM across equity (both active and passive), fixed income and alternatives/multi-asset solutions provides insight into the firm's asset allocation strategies and risk exposure. The relative balance between these categories suggests that AllianceBernstein is maintaining a diversified investment approach, which is often favored by risk-averse investors.

Market Research Analyst

The granularity of the AUM distribution across different investment types and client channels offers a nuanced view of market trends and client preferences. The increase in equity AUM, both active and passive, may reflect a broader market trend where investors are seeking growth opportunities in equities. The data also indicates a sustained interest in fixed income investments, with taxable fixed income remaining robust. This could signify a continued demand for stable, income-generating assets amidst market uncertainty.

Moreover, the dynamics between the retail and institutional segments highlight changing patterns in investment behavior. The outflows from institutional clients contrasted with retail inflows might suggest a shift in how different types of investors are reacting to the current economic environment. This could be indicative of institutional investors rebalancing portfolios or seeking alternative investment opportunities, while retail investors maintain or increase their market positions.

Economist

The marginal increase in AUM is not indicative of substantial economic shifts but does reflect broader economic conditions. The market gains contributing to AUM growth could be tied to macroeconomic factors such as interest rate changes, inflationary pressures, or geopolitical events that influence market performance. The net outflows from Institutions and Private Wealth, if indicative of a broader trend, may signal a cautious or bearish outlook from larger investors, who are typically more sensitive to macroeconomic signals.

Furthermore, the stability in retail inflows might suggest consumer confidence in the markets or in AllianceBernstein's management, despite potential economic headwinds. This could also point to effective retail-targeted strategies by the firm. The distribution of assets, with a significant portion in fixed income, suggests a defensive posture that could be appealing in times of market volatility or economic uncertainty.

NASHVILLE, Tenn., Feb. 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 $726 billion during January 2024 from $725 billion at the end of December. January AUM reflected market gains, partially offset by net outflows. By channel, net inflows to Retail were offset by net outflows from Institutions and Private Wealth.

AllianceBernstein L.P. (The Operating Partnership)
Assets Under Management ($ in Billions)
	At January 31, 2024																Dec 31,
																	2023
									Private
	Institutions				Retail				Wealth				Total				Total
Equity
Actively Managed	$	57			$	140			$	50			$	247			$	247
Passive	24				34				4				62				62
Total Equity	81				174				54				309				309
Fixed Income
Taxable	124				66				18				208				209
Tax-Exempt	1				34				27				62				61
Passive	—				11				—				11				11
Total Fixed Income	125				111				45				281				281
Alternatives/Multi-Asset Solutions(1)	107				6				23				136				135
Total	$	313			$	291			$	122			$	726			$	725
	At December 31, 2023
Total	$	317			$	287			$	121			$	725
(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, 2023. 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 high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets.

As of December 31, 2023, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 39.5% of AllianceBernstein and Equitable Holdings, Inc. ("EQH"), directly and through various subsidiaries, owned an approximate 61.2% 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-january-31-2024-assets-under-management-302059760.html

SOURCE AllianceBernstein

FAQ

What was the total assets under management for AllianceBernstein L.P. in January 2024?

AllianceBernstein L.P. reported total assets under management of $726 billion in January 2024.

What contributed to the increase in assets under management for AllianceBernstein L.P. in January 2024?

The increase in assets under management for AllianceBernstein L.P. in January 2024 was driven by market gains.

Which channel experienced net inflows for AllianceBernstein L.P. in January 2024?

Net inflows were seen in the Retail channel for AllianceBernstein L.P. in January 2024.

What were the total assets under management for AllianceBernstein L.P. at the end of December 2023?

AllianceBernstein L.P. reported total assets under management of $725 billion at the end of December 2023.

How much of the total assets under management for AllianceBernstein L.P. in January 2024 came from Fixed Income?

Fixed Income accounted for $281 billion of the total assets under management for AllianceBernstein L.P. in January 2024.