{"id":483906,"date":"2021-04-29T06:23:14","date_gmt":"2021-04-29T10:23:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/alliancebernstein-holding-l-p-announces-first-quarter-results\/"},"modified":"2021-04-29T06:23:14","modified_gmt":"2021-04-29T10:23:14","slug":"alliancebernstein-holding-l-p-announces-first-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/alliancebernstein-holding-l-p-announces-first-quarter-results\/","title":{"rendered":"AllianceBernstein Holding L.P. Announces First Quarter Results"},"content":{"rendered":"
\n

GAAP Diluted Net Income of $0.81 per Unit<\/h2>\n

Adjusted Diluted Net Income of $0.81 per Unit<\/h2>\n

Cash Distribution of $0.81 per Unit<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n NEW YORK<\/span>, April\u00a029, 2021 \/PRNewswire\/ — AllianceBernstein L.P. (“AB”) and AllianceBernstein Holding L.P. (“AB Holding”) (NYSE: AB) today reported financial and operating results for the quarter ended March\u00a031, 2021.<\/p>\n

“Our globally diversified platform continued to drive balanced and consistent organic growth, in a dynamic market environment,” said Seth P. Bernstein<\/span>, President and CEO of AllianceBernstein. “We generated active net inflows of $6.5 billion<\/span>, or 4% annualized organic growth. Aligned with our firm strategy, net inflows across all three client channels were driven by strength in active equities (including ESG), alternatives, and municipals. Our investment teams delivered improved near-term fixed income performance and solid long-term performance on behalf of our clients, with over 65% of both fixed income and equity assets outperforming on a 5-year basis. Coupled with tight expense management and continued COVID-19 related cost savings, our operating margin expanded to 31.7%, up 410 basis points year-over-year. First quarter earnings and distributions to Unitholders grew by 27% year-over-year.”<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n (US $ Thousands except per Unit amounts)<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 1Q 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 1Q 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n % Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 4Q 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n % Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n U.S. GAAP Financial Measures<\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Net revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,007,266<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 874,156<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 15.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,062,892<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (5.2)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating income<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 260,584<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 178,223<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 46.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 302,420<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (13.8)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 25.9<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 23.3<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 260 bps<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 28.4<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (250 bps)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n AB Holding Diluted EPU <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.81<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.63<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 28.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.97<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (16.5)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Adjusted Financial Measures <\/u>
\n (1)<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Net revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 819,978<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 743,803<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 10.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 879,801<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (6.8)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating income<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 260,061<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 205,590<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 26.5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 301,170<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (13.6)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 31.7<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 27.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 410 bps<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 34.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (250 bps)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n AB Holding Diluted EPU <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.81<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.64<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 26.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.97<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (16.5)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n AB Holding cash distribution per Unit<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.81<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.64<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 26.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.97<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (16.5)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (US $ Billions)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Assets Under Management (“AUM”)<\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Ending AUM<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 697.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 541.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 28.7<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 685.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 1.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Average AUM<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 688.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 602.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 14.4<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 651.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 5.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n
\n \n <\/td>\n<\/tr>\n
\n

\n
\n (1)<\/sup>\u00a0The adjusted financial measures represent non-GAAP financial measures. See page 11 for reconciliations of GAAP Financial Results to Adjusted Financial Results and pages 12-13 for notes describing the adjustments.\u00a0 <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Bernstein continued, “Retail channel gross sales were the second strongest ever, with net inflows driven by broad-based 17% organic growth in active equity services, positive for the 16th straight quarter, and 18% organic growth in municipals. Positive net flows in Institutional were led by taxable fixed income, while our institutional pipeline of $15.2 billion<\/span> reflected strong alternatives and active equity growth, and a record AFB of over $50 million<\/span>. In Private Wealth, client sentiment shift towards re-risking, coupled with improved investment performance, led to strong sales growth and organic growth of 6%. Bernstein Research revenues benefited from continued strength in Asia<\/span>, as global market volatility moderated from heightened levels a year ago.”<\/p>\n

Bernstein concluded, “We are encouraged by broad-based interest in our differentiated ESG, alternative, and active offerings, the result of investments in our people, technology and distribution capabilities. We are executing on a diverse and robust pipeline of innovative new product offerings in 2021. While the market environment remains robust, reflecting expectations of a rebounding global economy driven by outsized fiscal stimulus, accommodative monetary policy and wider dissemination of COVID-19 vaccines, we recognize that market conditions may change. Our teams continue to position portfolios for the long-term, and are fully invested in seeking optimal client outcomes.”<\/p>\n

The firm’s cash distribution per Unit of $0.81<\/span> is payable on May\u00a027, 2021, to holders of record of AB Holding Units at the close of business on May\u00a010, 2021.<\/p>\n

\n Market Performance<\/b>\n <\/p>\n

U.S. and global equity and fixed income markets were mixed in the first quarter.<\/p>\n

\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n S&P 500 Total Return<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n MSCI EAFE Total Return<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Bloomberg Barclays US Aggregate Return<\/span>\n <\/p>\n<\/td>\n

\n

\n (3.4)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Bloomberg Barclays Global Aggregate ex US Index Return<\/span>\n <\/p>\n<\/td>\n

\n

\n (5.3)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Bloomberg Barclays Global High Yield Index<\/span>\n <\/p>\n<\/td>\n

\n

\n (1.0)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Bloomberg Barclays U.S. Corporate High Yield Index<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\n Assets Under Management<\/b>\n <\/p>\n

\n ($ Billions)<\/b>\n <\/p>\n

Total assets under management as of March\u00a031, 2021 were $697.2 billion<\/span>, up $11.3 billion<\/span>, or 2%, from December\u00a031, 2020 and up $155.4 billion<\/span>, or 29%, from March\u00a031, 2020.<\/p>\n

\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Institutional<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Retail<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Private Wealth Management<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Total<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Assets Under Management 3\/31\/2021<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $314.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $272.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $110.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $697.2<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Flows for Three Months Ended 3\/31\/2021:<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Active<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $3.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $6.5<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Passive<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (1.6)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (0.4)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (1.3)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $5.2<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

Total net inflows were $5.2 billion<\/span> in the first quarter, compared to net inflows of $3.2 billion<\/span> in the fourth quarter of 2020, and net outflows of $5.6 billion<\/span> in the prior year first quarter. AXA redemptions of low-fee fixed income mandates and net flows excluding these redemptions were as follows:<\/p>\n

\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n 1Q 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 1Q 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 4Q 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n (in billions)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n AXA redemptions<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u2014<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.7<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Inflows (Outflows) excluding AXA redemptions<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $(4.6)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $3.9<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Institutional channel first quarter net inflows of $0.8 billion<\/span> compared to net inflows of $5.0 billion<\/span> in the fourth quarter of 2020. Institutional gross sales of $4.9 billion<\/span> decreased sequentially from $9.9 billion<\/span>. The pipeline of awarded but unfunded Institutional mandates increased sequentially to $15.2 billion<\/span> at March\u00a031, 2021 from $12.2 billion<\/span> at December\u00a031, 2020, primarily reflecting growth in higher-fee alternatives.<\/p>\n

Retail channel first quarter net inflows of $2.7 billion<\/span> compared to net outflows of $0.7 billion<\/span> in the fourth quarter of 2021. Retail gross sales of $23.0 billion<\/span> increased sequentially from $17.7 billion<\/span>. Active equities net inflows of $4.7 billion<\/span> and tax-exempt fixed income net inflows of $1.1 billion<\/span> more than offset taxable fixed income net outflows of $2.7 billion<\/span>.<\/p>\n

Private Wealth channel first quarter net inflows of $1.7 billion<\/span> compared to net outflows of $1.1 billion<\/span> in the fourth quarter of 2021, reflecting increased client sentiment towards re-risking portfolios. Private Wealth gross sales of $5.4 billion<\/span> increased sequentially from $3.7 billion<\/span>.<\/p>\n

Our ending AUM at March\u00a031, 2021 reflects $11.8 billion<\/span> in outflows resulting from AXA’s redemption of certain low-fee fixed income mandates during 2020. No redemptions were made during the first quarter of 2021. We currently anticipate AXA to\u00a0redeem the majority of the remaining $2 billion<\/span> of additional assets during the second quarter of 2021, bringing the total assets redeemed to approximately $14 billion<\/span>. The revenue we earn from the management of these assets is not significant.<\/p>\n

\n First Quarter Financial Results<\/b>\n <\/p>\n

We are presenting both earnings information derived in accordance with accounting principles generally accepted in the United States of America<\/span> (“US GAAP”) and non-GAAP, adjusted earnings information in this release. Management principally uses these non-GAAP financial measures in evaluating performance because we believe they present a clearer picture of our operating performance and allow management to see long-term trends without the distortion caused by long-term incentive compensation-related mark-to-market adjustments, real estate charges\/credits and other adjustment items. Similarly, we believe that non-GAAP earnings information helps investors better understand the underlying trends in our results and, accordingly, provides a valuable perspective for investors. Please note, however, that these non-GAAP measures are provided in addition to, and not as a substitute for, any measures derived in accordance with US GAAP and they may not be comparable to non-GAAP measures presented by other companies. Management uses both US GAAP and non-GAAP measures in evaluating our financial performance. The non-GAAP measures alone may pose limitations because they do not include all of our revenues and expenses.<\/p>\n

AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation.<\/p>\n

\n US GAAP Earnings<\/b>\n <\/p>\n

\n
\n Revenues<\/u>
\n <\/i>\n <\/p>\n

First quarter net revenues of $1.0 billion<\/span> increased 15% from $874 million<\/span> in the first quarter of 2020. Higher investment advisory base fees, investment gains compared to investment losses in the prior year first quarter, higher distribution revenues and performance-based fees were partially offset by lower Bernstein Research revenues. <\/p>\n

Sequentially, net revenues of $1.0 billion<\/span> decreased 5% from $1.1 billion<\/span>. Lower performance-based fees were partially offset by higher investment advisory fees and distribution revenues.<\/p>\n

First quarter Bernstein Research revenues of $119 million<\/span> decreased 8% compared to the prior year first quarter and increased 1% sequentially. The decrease from the prior year first quarter was due to reduced customer trading activity driven by fewer trading days and decreased market volatility, as compared to the significant surge in trading volume experienced during the first quarter of 2020. The slight sequential increase was due to increased customer trading activity across our products, partially offset by timing of research payments. <\/p>\n

\n
\n Expenses<\/u>
\n <\/i>\n <\/p>\n

First quarter operating expenses of $747 million<\/span> increased 7% from $696 million<\/span> in the first quarter of 2020. Higher total employee compensation and benefits expense and promotion and servicing expenses were partially offset by lower general and administrative (“G&A”) expense, amortization of intangibles and interest on borrowings. Employee compensation and benefits expense increased due to higher incentive compensation, fringes and base compensation, partially offset by lower other employment costs. Promotion and servicing expenses increased due to higher distribution related payments and amortization of deferred sales commissions, partially offset by lower travel and entertainment and marketing expenses. The decrease in travel and entertainment and marketing expense is primarily a result of cost savings associated with the COVID-19 pandemic and we expect these costs to continue to increase in 2021 and further normalize in 2022, as the pandemic recedes. Within G&A, the decrease was driven by lower portfolio servicing fees.<\/p>\n

Sequentially, operating expenses decreased 2% from $760 million<\/span>. Lower total employee compensation and benefits expense and G&A expense were partially offset by higher promotion and servicing expenses and contingent payment arrangements. Employee compensation and benefits expense decreased due to lower incentive compensation and other employment costs, partially offset by higher commissions and fringes. Within G&A, the decrease was driven by lower charitable contributions and errors, partially offset by higher office-related expense and professional fees. Promotion and servicing expenses increased due to higher distribution related payments and trade execution costs, partially offset by lower marketing expenses. In addition, during the fourth quarter of 2020, we recorded an intangible asset impairment charge of $1.5 million<\/span> and a change in our contingent payment liability of $1.4 million<\/span>, both relating to a previous acquisition.<\/p>\n

\n
\n Operating Income, Margin and Net Income Per Unit<\/u>
\n <\/i>\n <\/p>\n

First quarter operating income of $261 million<\/span> increased 46% from $178 million<\/span> in the first quarter of 2020 and the operating margin of 25.9% in the first quarter of 2021 increased 260 basis points from 23.3% in the first quarter of 2020.<\/p>\n

Sequentially, operating income decreased 14% from $302 million<\/span> in the fourth quarter of 2020 and the operating margin of 25.9% decreased 250 basis points from 28.4% in the fourth quarter of 2020.<\/p>\n

First quarter diluted net income per Unit was $0.81<\/span> compared to $0.63<\/span> in the first quarter of 2020 and $0.97<\/span> in the fourth quarter of 2020.<\/p>\n

\n Non-GAAP Earnings<\/b>\n <\/p>\n

This section discusses our first quarter 2021 non-GAAP financial results, compared to the first quarter of 2020 and the fourth quarter of 2020. The phrases “adjusted net revenues”, “adjusted operating expenses”, “adjusted operating income”, “adjusted operating margin” and “adjusted diluted net income per Unit” are used in the following earnings discussion to identify non-GAAP information.<\/p>\n

\n
\n Revenues<\/u>
\n <\/i>\n <\/p>\n

First quarter adjusted net revenues of $820 million<\/span> increased 10% from $744 million<\/span> in the first quarter of 2020. Higher investment advisory base fees, performance-based fees and investment gains compared to investment losses in the prior year first quarter were partially offset by lower Bernstein Research revenues.<\/p>\n

Sequentially, adjusted net revenues decreased 7% from $880 million<\/span>. Lower performance-based fees were partially offset by higher investment advisory base fees and investment gains compared to investment losses in the prior period.<\/p>\n

\n
\n Expenses<\/u>
\n <\/i>\n <\/p>\n

First quarter adjusted operating expenses of $560 million<\/span> increased 4% from $538 million<\/span> in the first quarter of 2020. Higher total employee compensation and benefits and G&A expense were partially offset by lower promotion and servicing expenses, amortization of intangibles and interest on borrowings. Employee compensation and benefits expense increased due to higher incentive compensation, fringes and base compensation, partially offset by lower other employment costs. Within G&A, the increase was driven by higher other taxes, portfolio servicing fees and higher professional fees. Promotion and servicing expenses decreased due to lower travel and entertainment expense and marketing expense. The decrease in travel and entertainment and marketing expense is primarily a result of cost savings associated with the COVID-19 pandemic and we expect these costs to continue to increase in 2021 and further normalize in 2022, as the pandemic recedes.<\/p>\n

Sequentially, adjusted operating expenses decreased 3% from $579 million<\/span>. Total employee compensation and benefits expense, promotion and servicing and G&A expenses were all lower. Employee compensation and benefits expense decreased due to lower incentive compensation and other employment costs, partially offset by higher commissions and fringes. Within promotion and servicing expenses, the decrease was driven by lower marketing expense, partially offset by higher trade execution costs. Within G&A, the decrease is attributable to lower charitable contributions, partially offset by higher office-related expense and professional fees. <\/p>\n

\n
\n Operating Income, Margin and Net Income Per Unit<\/u>
\n <\/i>\n <\/p>\n

First quarter adjusted operating income of $260 million<\/span> increased 26% from $206 million<\/span> in the first quarter of 2020, and the adjusted operating margin of 31.7% increased 410 basis points from 27.6%.<\/p>\n

Sequentially, adjusted operating income of $260 million<\/span> decreased 14% from $301 million<\/span> and the adjusted operating margin of 31.7% in the first quarter of 2021 decreased 250 basis points from 34.2%.<\/p>\n

First quarter adjusted diluted net income per Unit was $0.81<\/span> compared to $0.64<\/span> in the first quarter of 2020 and\u00a0 $0.97<\/span> in the fourth quarter of 2020.<\/p>\n

\n Headcount<\/b>\n <\/p>\n

As of March\u00a031, 2021, we had 3,920 employees, compared to 3,846 employees as of March\u00a031, 2020 and 3,929 as of December\u00a031, 2020.<\/p>\n

\n Unit Repurchases <\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Three Months Ended<\/b>
\n <\/span>\n <\/p>\n

\n
\n March 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (in millions)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total amount of AB Holding Units Purchased (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Total Cash Paid for AB Holding Units Purchased (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 37.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 19.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Open Market Purchases of AB Holding Units Purchased (2)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Total Cash Paid for Open Market Purchases of AB Holding Units (2)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 24.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n (1)<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n Purchased on a trade date basis.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n (2)<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n The remainder related to purchases of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n First Quarter 2021 Earnings Conference Call Information<\/b>\n <\/p>\n

Management will review First Quarter 2021 financial and operating results during a conference call beginning at 8:00 a.m. (EST)<\/span> on\u00a0Thursday, April\u00a029, 2021. The conference call will be hosted by Seth P. Bernstein<\/span>, President and Chief Executive Officer, Ali Dibadj<\/span>, Chief Financial Officer and Head of Strategy, Catherine Burke<\/span>, Chief Operating Officer, and Matthew Bass<\/span>, Head of Private Alternatives.<\/p>\n

Parties may access the conference call by either webcast or telephone:<\/p>\n

    \n
  1. To listen by webcast, please visit AB’s Investor Relations website at http:\/\/alliancebernstein.com\/investorrelations<\/a><\/u>\u00a0at least 15 minutes prior to the call to download and install any necessary audio software. <\/li>\n
  2. To listen by telephone, please dial (833) 495-0952 in the U.S. or (409) 216-0498 outside the U.S. 10 minutes before the scheduled start time. The conference ID# is 7979259.<\/li>\n<\/ol>\n

    The presentation management will review during the conference call will be available on AB’s Investor Relations website shortly after the release of\u00a0First Quarter 2021 financial\u00a0and operating results on\u00a0April\u00a029, 2021.<\/p>\n

    A replay of the webcast will be made available beginning approximately one hour after the conclusion of the conference call and will be available on AB’s website for one week. An audio replay of the conference call will also be available for one week. To access the audio replay, please call (855)\u00a0859-2056 in the US, or (404)\u00a0537-3406 outside the US, and provide the conference ID #: 7979259.<\/p>\n

    \n Cautions Regarding Forward-Looking Statements<\/b>\n <\/p>\n

    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\u00a031, 2020 and subsequent Forms 10-Q. Any or all of the forward-looking statements made in this news release, Form 10-K, Forms 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 below, could also adversely affect AB’s revenues, financial condition, results of operations and business prospects.<\/p>\n

    The forward-looking statements referred to in the preceding paragraph include statements regarding:<\/p>\n