AB Announces June 30, 2024 Assets Under Management
On July 10, 2024, AllianceBernstein (AB) announced its assets under management (AUM) increased to $769 billion as of June 30, 2024, up from $757 billion at the end of May 2024. This 1.6% rise was driven by market appreciation, slightly offset by net outflows. By channel, net inflows in Private Wealth were balanced by net outflows in Institutions, while Retail flows remained flat. The detailed breakdown includes $330 billion in equity (both actively and passively managed), $293 billion in fixed income (including taxable, tax-exempt, and passive), and $146 billion in alternatives/multi-asset solutions.
- AUM increased by $12 billion, a 1.6% rise from May to June 2024.
- Market appreciation contributed positively to the AUM growth.
- Private Wealth channel saw net inflows.
- Net outflows were observed in the Institutions channel.
- Retail flows were flat, indicating no growth in that segment.
Insights
AllianceBernstein's announcement of a 1.6% increase in assets under management (AUM) from
Breaking down the numbers, the Private Wealth channel saw net inflows, suggesting increased confidence among individual high-net-worth investors. Conversely, Institutional investors exhibited net outflows, potentially signaling some skepticism or reallocation of assets. Retail flows remained flat, reflecting stable but uninspired sentiment among smaller investors.
The mix of actively managed and passive investments shows an interesting trend: Equity investments grew modestly but showed a preference for active management, while Fixed Income investments also increased slightly, dominated by taxable investments. Alternatives and Multi-Asset Solutions saw a modest uptake, indicating a continued search for diversification.
For retail investors, the increase in AUM is generally positive as it suggests the firm is growing and managing more assets effectively. However, the net outflows in the Institutional segment could be a red flag, suggesting some clients might believe better opportunities exist elsewhere. This mixed sentiment is something to watch closely.
The increase in AllianceBernstein's AUM highlights the firm's ability to attract new funds despite the competitive landscape. The 1.6% growth, while modest, is a signal of healthy market appreciation countered by net outflows. This duality suggests a bifurcated market sentiment where some investors are confident enough to add funds, while others opt to withdraw, possibly to hedge against market volatility or to reallocate to different asset classes.
The robust inflows in the Private Wealth sector suggest strong performance and trust in the firm's advisory services for high-net-worth individuals. However, the net outflows in the Institutional segment may indicate competitive pressure or changing investment strategies among large entities. The stagnant Retail flows point to a wait-and-see approach from average investors, possibly due to economic uncertainty.
Retail investors should consider these dynamics when evaluating the firm's future performance. The growth in passive investments aligns with industry trends toward low-cost, index-based strategies, which can offer stability but may limit growth potential compared to actively managed funds. The firm's balance of equity and fixed-income products, with a slight preference for active management, suggests a strategy aimed at outperforming the market, albeit with inherent risks.
AllianceBernstein L.P. (The Operating Partnership) | |||||||||||||||||||
Assets Under Management ($ in Billions) | |||||||||||||||||||
At June 30, 2024 | May 31, | ||||||||||||||||||
2024 | |||||||||||||||||||
Private | |||||||||||||||||||
Institutions | Retail | Wealth | Total | Total | |||||||||||||||
Equity | |||||||||||||||||||
Actively Managed | $ | 56 | $ | 155 | $ | 53 | $ | 264 | $ | 260 | |||||||||
Passive | 24 | 37 | 5 | 66 | 64 | ||||||||||||||
Total Equity | 80 | 192 | 58 | 330 | 324 | ||||||||||||||
Fixed Income | |||||||||||||||||||
Taxable | 128 | 70 | 18 | 216 | 214 | ||||||||||||||
Tax-Exempt | 1 | 37 | 28 | 66 | 65 | ||||||||||||||
Passive | 1 | 10 | — | 11 | 11 | ||||||||||||||
Total Fixed Income | 130 | 117 | 46 | 293 | 290 | ||||||||||||||
Alternatives/Multi-Asset Solutions(1) | 113 | 7 | 26 | 146 | 143 | ||||||||||||||
Total | $ | 323 | $ | 316 | 130 | 769 | 757 | ||||||||||||
At May 31, 2024 | |||||||||||||||||||
Total | $ | 320 | $ | 309 | $ | 128 | $ | 757 | |||||||||||
(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 March 31, 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
Additional information about AB may be found on our website, www.alliancebernstein.com.
View original content:https://www.prnewswire.com/news-releases/ab-announces-june-30-2024-assets-under-management-302193988.html
SOURCE AllianceBernstein
FAQ
What were AB's assets under management as of June 30, 2024?
How much did AB's assets under management increase from May to June 2024?
What contributed to the increase in AB's assets under management in June 2024?
How did AB's different channels perform in terms of net flows in June 2024?
