AB Announces July 31, 2024 Assets Under Management

Rhea-AI Summary

AllianceBernstein (NYSE: AB) reported a 1% increase in assets under management (AUM) for July 2024, reaching $777 billion from $770 billion in June. The growth was primarily driven by market appreciation, partially offset by net outflows. Key highlights include:

- Solid net inflows in Retail channel
- Net outflows in Institutions
- Modest net outflows in Private Wealth
- Total Equity AUM increased to $331 billion
- Fixed Income AUM decreased to $285 billion
- Alternatives/Multi-Asset Solutions AUM grew to $161 billion

The company also reclassified $12 billion of Private Placements AUM from Taxable Fixed Income to Alternatives/Multi-Asset as of July 31, 2024.

Positive

• Assets under management increased by 1% to $777 billion
• Market appreciation contributed to AUM growth
• Solid net inflows in the Retail channel
• Total Equity AUM increased to $331 billion
• Alternatives/Multi-Asset Solutions AUM grew to $161 billion

Negative

• Net outflows in Institutions channel
• Modest net outflows in Private Wealth channel
• Fixed Income AUM decreased to $285 billion

Insights

Financial Analyst

AllianceBernstein's 1% increase in AUM to $777 billion is a modest positive. The growth, driven by market appreciation, shows resilience despite net outflows. The solid net inflows in Retail are encouraging, indicating strong consumer interest. However, net outflows in Institutions and Private Wealth suggest challenges in retaining larger clients.

The shift of $12 billion from Taxable Fixed Income to Alternatives/Multi-Asset is noteworthy. This move could potentially yield higher fees, as alternative investments typically command premium pricing. It also reflects a strategic pivot towards more complex, higher-margin products in a competitive asset management landscape.

Overall, while the AUM growth is positive, the mixed flow picture warrants careful monitoring of client retention strategies and product diversification efforts.

Market Research Analyst

The 1% monthly AUM increase outpaces the S&P 500's 0.57% gain in July, indicating AllianceBernstein's relative outperformance. This suggests effective active management or a favorable asset mix. The growth in Alternatives/Multi-Asset Solutions from $146 billion to $161 billion is particularly significant, reflecting broader market trends towards diversification and non-traditional investments.

However, the contrasting flows between Retail and Institutional channels highlight shifting investor behaviors. Retail inflows amid institutional outflows could signal diverging risk appetites or a potential democratization of sophisticated investment strategies. This trend, if sustained, may reshape AllianceBernstein's client base and product development focus.

NASHVILLE, Tenn., Aug. 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 $777 billion during July 2024 from $770 billion at the end of June. The 1% increase was driven by market appreciation, partially offset by net outflows. By channel, solid net inflows in Retail were offset by net outflows in Institutions, coupled with modest net outflows in Private Wealth.  

AllianceBernstein L.P. (The Operating Partnership)
Assets Under Management ($ in Billions)
	At July 31, 2024																Jun 30,
																	2024
									Private
	Institutions				Retail				Wealth				Total				Total
Equity
Actively Managed	$	56			$	154			$	54			$	264			$	264
Passive	24				38				5				67				66
Total Equity	80				192				59				331				330
Fixed Income
Taxable	116				71				19				206				216
Tax-Exempt	2				37				29				68				67
Passive	—				11				—				11				11
Total Fixed Income(2)	118				119				48				285				294
Alternatives/Multi-Asset Solutions(1),(2)	128				8				25				161				146
Total	$	326			$	319				132				777				770
	At June 30, 2024
Total	$	323			$	317			$	130			$	770
(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. 

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SOURCE AllianceBernstein

FAQ

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

AllianceBernstein's total assets under management (AUM) reached $777 billion as of July 31, 2024.

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

AB's AUM increased by 1%, from $770 billion at the end of June to $777 billion in July 2024.

What were the main factors affecting AB's AUM change in July 2024?

The 1% increase in AUM was driven by market appreciation, partially offset by net outflows across different channels.

Which channel experienced solid net inflows for AB in July 2024?

The Retail channel experienced solid net inflows for AllianceBernstein in July 2024.

How did AB's Fixed Income AUM change from June to July 2024?

AB's Fixed Income AUM decreased from $294 billion in June to $285 billion in July 2024.