{"id":702446,"date":"2022-10-28T06:29:23","date_gmt":"2022-10-28T10:29:23","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/alliancebernstein-holding-l-p-announces-third-quarter-results-2\/"},"modified":"2022-10-28T06:29:23","modified_gmt":"2022-10-28T10:29:23","slug":"alliancebernstein-holding-l-p-announces-third-quarter-results-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/alliancebernstein-holding-l-p-announces-third-quarter-results-2\/","title":{"rendered":"ALLIANCEBERNSTEIN HOLDING L.P. ANNOUNCES THIRD QUARTER RESULTS"},"content":{"rendered":"
\n

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

\n

\n GAAP Diluted Net Income of $0.56<\/span> per Unit<\/b>\n <\/p>\n

\n Adjusted Diluted Net Income of $0.64<\/span> per Unit<\/b>\n <\/p>\n

\n Cash Distribution of $0.64<\/span> per Unit<\/b>\n <\/p>\n

\n
\n NASHVILLE, Tenn.<\/span>
\n <\/span>, Oct. 28, 2022<\/span><\/span> \/PRNewswire\/ — AllianceBernstein L.P. (“AB”) and AllianceBernstein Holding L.P. (“AB Holding”) (NYSE: AB) today reported financial and operating results for the quarter ended September\u00a030, 2022.<\/p>\n

“Global financial markets declined in the third quarter amidst continued volatility stemming from accelerating inflation and higher interest rates,” said Seth P. Bernstein<\/span>, President and CEO of AllianceBernstein. “AB was not immune to industrywide conditions, as net outflows were $10.5 billion<\/span>, or $6.6 billion<\/span> excluding anticipated AXA redemptions. Growth in alternatives\/multi-asset and municipals was outweighed by taxable fixed income and active equity outflows. Our fee rate improved by 7% year-over-year, growing in each channel, driven by the addition of CarVal and favorable asset mix. Our institutional pipeline increased to $24.7 billion<\/span>, up $14.5 billion<\/span> sequentially, driven by a $7.5 billion<\/span> custom target-date mandate, $4.6 billion<\/span> of CarVal commitments, and additional diversified active mandates. While near-term investment performance reflects a challenging environment, long-term performance remained strong in equities and above average in fixed income. Overall, AB’s financial performance reflected lower asset prices, with year-over-year adjusted operating income declining by 27% and adjusted earnings per Unit and distributions to Unitholders declining by 28%.”<\/p>\n

\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 3Q 2022<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 3Q 2021<\/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 2Q 2022<\/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 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 986,984<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0 1,092,832<\/span>\n <\/p>\n<\/td>\n

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

\n (9.7)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 971,444<\/span>\n <\/p>\n<\/td>\n

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

\n 1.6\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 170,305<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 279,650<\/span>\n <\/p>\n<\/td>\n

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

\n (39.1)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 192,648<\/span>\n <\/p>\n<\/td>\n

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

\n (11.6\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 18.3\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n 25.7\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n (740 bps)<\/span>\n <\/p>\n<\/td>\n

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

\n 22.6\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n (430 bps)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.56<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.89<\/span>\n <\/p>\n<\/td>\n

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

\n (37.1)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.69<\/span>\n <\/p>\n<\/td>\n

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

\n (18.8\u00a0%)<\/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 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 814,031<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 883,598<\/span>\n <\/p>\n<\/td>\n

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

\n (7.9)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 816,346<\/span>\n <\/p>\n<\/td>\n

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

\n (0.3\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 204,380<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 280,716<\/span>\n <\/p>\n<\/td>\n

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

\n (27.2)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 225,769<\/span>\n <\/p>\n<\/td>\n

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

\n (9.5\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 25.1\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n 31.8\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n (670 bps)<\/span>\n <\/p>\n<\/td>\n

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

\n 27.7\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n (260 bps)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.64<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.89<\/span>\n <\/p>\n<\/td>\n

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

\n (28.1)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.71<\/span>\n <\/p>\n<\/td>\n

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

\n (9.9\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.64<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.89<\/span>\n <\/p>\n<\/td>\n

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

\n (28.1)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.71<\/span>\n <\/p>\n<\/td>\n

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

\n (9.9\u00a0%)<\/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 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 612.7<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 742.2<\/span>\n <\/p>\n<\/td>\n

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

\n (17.5)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 646.8<\/span>\n <\/p>\n<\/td>\n

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

\n (5.3\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 653.9<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 747.4<\/span>\n <\/p>\n<\/td>\n

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

\n (12.5)\u00a0%<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 688.6<\/span>\n <\/p>\n<\/td>\n

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

\n (5.0\u00a0%)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n (1)<\/sup>\u00a0The adjusted financial measures represent non-GAAP financial measures. See page 12 for\u00a0reconciliations\u00a0of GAAP Financial Results to Adjusted Financial Results and pages 13-14 for notes describing the adjustments.\u00a0
<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Bernstein continued, “Retail sales continued to moderate, reflecting lower active equity sales driven by weaker markets. Taxable fixed income net outflows improved, and municipals posted their 9th<\/sup> consecutive quarter of organic growth. Retail net outflows were $5.0 billion<\/span>, or $2.8 billion<\/span> ex-AXA redemptions. Our Institutional channel saw net outflows of $6.3 billion<\/span>, or $4.6 billion<\/span> ex-AXA redemptions. Private Wealth grew organically for the 7th of the last 9 quarters, with net inflows of $0.8 billion<\/span>. Bernstein Research revenues decreased 19% versus the prior year driven by lower customer trading activity in Europe<\/span> and Asia<\/span> amidst a volatile and uncertain global environment.”<\/p>\n

Bernstein concluded, “With macroeconomic concerns continuing to set the market tone, our investment teams continue to pursue a fundamental approach to identifying the best opportunities for our clients. While we are managing expenses judiciously in this environment, we continue to invest in select client-driven growth opportunities, including the recent launch of our first two active fixed income ETF’s. Our dedication to securing the best outcome for our clients remains our guiding principle; thus, we were pleased to be ranked recently by Investor’s Business Daily as the 6th Most Trusted Financial Company. Across AB, our talented teams seek to maintain and grow our customers’ trust every day.”<\/p>\n

The firm’s cash distribution per Unit of $0.64<\/span> is payable on November\u00a023, 2022, to holders of record of AB Holding Units at the close of business on November\u00a07, 2022.<\/p>\n

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

\n
\n Market Performance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

\n Global equity and fixed income markets were down in the third quarter of 2022.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

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

\n

\n (4.9)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n (9.3)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n (4.8)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n (2.7)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0\u00a0<\/p>\n

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

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

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

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

\n Total assets under management as of September\u00a030, 2022 were $612.7 billion, down $34.1 billion, or 5%, from June\u00a030, 2022 and down $129.5 billion, or 18%, from September\u00a030, 2021.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n<\/tr>\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<\/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 9\/30\/2022<\/span>\n <\/p>\n<\/td>\n

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

\n $279.4<\/span>\n <\/p>\n<\/td>\n

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

\n $232.3<\/span>\n <\/p>\n<\/td>\n

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

\n $101.0<\/span>\n <\/p>\n<\/td>\n

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

\n $612.7<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Flows for Three Months Ended 9\/30\/2022:<\/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 ($6.1)<\/span>\n <\/p>\n<\/td>\n

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

\n ($2.2)<\/span>\n <\/p>\n<\/td>\n

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

\n $0.5<\/span>\n <\/p>\n<\/td>\n

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

\n ($7.8)<\/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 ($0.2)<\/span>\n <\/p>\n<\/td>\n

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

\n ($2.8)<\/span>\n <\/p>\n<\/td>\n

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

\n $0.3<\/span>\n <\/p>\n<\/td>\n

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

\n ($2.7)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n ($6.3)<\/span>\n <\/p>\n<\/td>\n

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

\n ($5.0)<\/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 ($10.5)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Total net outflows were $10.5 billion<\/span> in the third quarter, compared to net outflows of $2.7 billion<\/span> in the second quarter of 2022, and net inflows of $7.2 billion<\/span> in the prior year third quarter. AXA redemptions and net flows excluding these redemptions were as follows:<\/p>\n

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

\n
\n 3Q 2022<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 3Q 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2Q 2022<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

\n $3.9<\/span>\n <\/p>\n<\/td>\n

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

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

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

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

\n

\n Net (outflows) inflows excluding AXA redemptions<\/span>\n <\/p>\n<\/td>\n

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

\n ($6.6)<\/span>\n <\/p>\n<\/td>\n

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

\n $7.2<\/span>\n <\/p>\n<\/td>\n

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

\n ($2.1)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Institutional channel third quarter net outflows of $6.3 billion<\/span> compared to net inflows of $0.7 billion<\/span> in the second quarter of 2022. Excluding AXA redemptions of low-fee fixed income mandates of $1.7 billion<\/span> in the third quarter, net outflows were $4.6 billion<\/span>. Institutional gross sales of $1.9 billion<\/span> decreased sequentially from $3.3 billion<\/span>. The pipeline of awarded but unfunded Institutional mandates increased sequentially to $24.7 billion<\/span> at September\u00a030, 2022 from $10.2 billion<\/span> at June\u00a030, 2022.<\/p>\n

Retail channel third quarter net outflows of $5.0 billion<\/span> compared to net outflows of $2.2 billion<\/span> in the second quarter of 2022. Retail gross sales of $13.8 billion<\/span> decreased sequentially from $17.3 billion<\/span>. Excluding AXA redemptions of passive fixed income and equity mandates of $2.2 billion<\/span> in the third quarter, net outflows were $2.8 billion<\/span>.<\/p>\n

Private Wealth channel third quarter net inflows of $0.8 billion<\/span> compared to net outflows of $1.2 billion<\/span> in the second quarter of 2022. Private Wealth gross sales of $4.1 billion<\/span> increased sequentially from $3.3 billion<\/span>.<\/p>\n

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

Third\u00a0quarter net revenues of $987 million<\/span> decreased 10% from $1.1 billion<\/span> in the third quarter of 2021. The decrease was primarily due to lower investment advisory base fees, distribution revenues, Bernstein Research revenues and performance-based fees.<\/p>\n

Sequentially, net revenues of $987 million<\/span> increased 2%. The increase was due to lower investment losses and higher investment advisory base fees, partially offset by lower Bernstein Research revenues, performance-based fees and distribution revenues.<\/p>\n

Third\u00a0quarter Bernstein Research revenues of $92 million<\/span> decreased 19% compared to the prior year third quarter and decreased 14% sequentially. The decrease was driven by significantly lower trading activity in Europe<\/span> and Asia<\/span> due to the prevailing macro-economic environment. The sequential decrease was driven by a decline in global customer trading activity.<\/p>\n

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

Third\u00a0quarter operating expenses of $817 million<\/span> increased less than 1% from $813 million<\/span> in the third quarter of 2021. The increase is primarily due to higher general and administrative (“G&A”) expenses, amortization of intangibles and interest expense, offset by lower promotion and servicing expenses and total employee compensation and benefit expense. Within G&A, the increase was driven by higher professional fees, technology expenses, an unfavorable foreign exchange translation impact and higher portfolio servicing fees. Promotion and servicing expenses decreased due to lower distribution-related payments and lower transfer fees, partially offset by higher marketing and travel and entertainment expenses. Employee compensation and benefits expense decreased due to lower incentive compensation, partially offset by higher base compensation, other employment costs and commissions.<\/p>\n

Sequentially, operating expenses increased 5% from $778 million<\/span>, primarily driven by higher total employee compensation and benefits expense, amortization of intangibles, general and administrative expenses and interest on borrowings, offset by lower promotion and servicing expenses. Employee compensation and benefits expense increased due to higher incentive compensation and higher base compensation, partially offset by lower commissions. Within G&A, the increase was driven by higher professional fees, office-related expenses and technology expenses, partially offset by lower portfolio servicing fees. Promotion and servicing expenses decreased due to lower distribution-related payments, travel and entertainment expenses, marketing expenses and trade execution costs.<\/p>\n

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

Third\u00a0quarter operating income of $170 million<\/span> decreased 39% from $280 million<\/span> in the third quarter of 2021 and the operating margin of 18.3% in the third quarter of 2022 decreased 740 basis points from 25.7% in the third quarter of 2021.<\/p>\n

Sequentially, operating income decreased 12% from $193 million<\/span> in the second quarter of 2022 and the operating margin of 18.3% decreased 430 basis points from 22.6% in the second quarter of 2022.<\/p>\n

Third\u00a0quarter diluted net income per Unit was $0.56<\/span> compared to $0.89<\/span> in the third quarter of 2021 and $0.69<\/span> in the second quarter of 2022.<\/p>\n

\n Non-GAAP Earnings
<\/b>This section discusses our third quarter 2022 non-GAAP financial results, compared to the third quarter of 2021 and the second quarter of 2022. 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

Third\u00a0quarter adjusted net revenues of $814 million<\/span> decreased 8% from $884 million<\/span> in the third quarter of 2021. The decrease was due to lower investment advisory base fees, Bernstein Research revenues and performance-based fees, partially offset by investment gains in the current year compared to investment losses in the prior year.<\/p>\n

Sequentially, adjusted net revenues decreased less than 1% from $816 million<\/span>. The decrease was due to lower Bernstein Research revenues and lower performance-based fees, partially offset by investment gains in the current quarter compared to investment losses in the prior quarter, higher investment advisory base fees and higher net dividend and interest income.<\/p>\n

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

Third\u00a0quarter adjusted operating expenses of $610 million<\/span> increased 1% from $603 million<\/span> in the third quarter of 2021. Higher G&A expense, interest expense on borrowings and promotion and servicing expenses were partially offset by lower employee compensation and benefits. Within G&A, the increase was driven by higher technology expenses and an unfavorable foreign exchange translation impact, partially offset by lower portfolio servicing fees. Promotion and servicing expenses increased due to higher marketing expenses, firm meeting expenses and travel and entertainment expenses, partially offset by lower trade execution costs and transfer fees. Employee compensation and benefits expense decreased due to lower incentive compensation, partially offset by higher base compensation, other employment costs and commissions and fringes.<\/p>\n

Sequentially, adjusted operating expenses increased 3% from $590 million<\/span>. Higher total employee compensation and benefits, interest on borrowings and higher G&A expense were partially offset by lower promotion and servicing expenses. Employee compensation and benefits expense increased due to higher incentive compensation and higher base compensation, partially offset by lower commissions. Within G&A, the increase was driven by higher office-related expenses and technology expenses, partially offset by lower portfolio servicing fees and other taxes. Promotion and servicing expenses decreased due to lower travel and entertainment, trade execution costs and marketing expenses.<\/p>\n

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

Third\u00a0quarter adjusted operating income of $204 million<\/span> decreased 27% from $281 million<\/span> in the third quarter of 2021, and the adjusted operating margin of 25.1% decreased 670 basis points from 31.8%.<\/p>\n

Sequentially, adjusted operating income of $204 million<\/span> decreased 9% from $226 million<\/span> and the adjusted operating margin of 25.1% decreased 260 basis points from 27.7%.<\/p>\n

Third\u00a0quarter adjusted diluted net income per Unit was $0.64<\/span> compared to $0.89<\/span> in the third quarter of 2021 and\u00a0 $0.71<\/span> in the second quarter of 2022.<\/p>\n

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

As of September\u00a030, 2022, we had 4,490 employees, including 196 employees as a result of the CarVal acquisition, compared to 4,050 employees as of September\u00a030, 2021 and 4,313 as of June\u00a030, 2022.<\/p>\n

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

\n
\n Unit Repurchases<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

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

\n
\n September 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

\n
\n September 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

\n
\n 2022<\/b>
\n <\/span>\n <\/p>\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 2022<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/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\/Retained (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \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 2.6<\/span>\n <\/p>\n<\/td>\n

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

\n 2.9<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.0<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 50.0<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 107.7<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 125.7<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Open Market Purchases of AB Holding Units Purchased (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

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

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

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

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

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

\n 2.3<\/span>\n <\/p>\n<\/td>\n

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

\n 2.3<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total Cash Paid for Open Market Purchases of AB Holding Units (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2014<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 44.9<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 92.7<\/span>\n <\/p>\n<\/td>\n

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

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 103.7<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n \u00a0 \u00a0 \u00a0 (1)\u00a0 <\/sup>
\n Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees to
\u00a0 \u00a0 \u00a0 fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards.<\/sup>
\n
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Third<\/b>
\n \u00a0Quarter 2022 Earnings Conference Call Information<\/b>\n <\/p>\n

Management will review Third Quarter 2022 financial and operating results during a conference call beginning at 9:00 a.m. (CT)<\/span> on\u00a0Friday, October\u00a028, 2022. The conference call will be hosted by Seth Bernstein<\/span>, President & Chief Executive Officer;\u00a0 Kate Burke<\/span>, Chief Operating Officer & Chief Financial Officer; Onur Erzan<\/span>, Head of Global Client Group & Head of Private Wealth; and Bill Siemers<\/span>, Controller & Chief Accounting Officer.<\/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 https:\/\/www.alliancebernstein.com\/corporate\/en\/investor-relations.html<\/a><\/u>\u00a0at least 15 minutes prior to the call to download and install any necessary audio software.\n<\/li>\n
  2. To listen by telephone, participants are required to register using the following link, where they will be provided a phone number and personal access code: https:\/\/register.vevent.com\/register\/BI5b0986f17ea24f72859ec5ec2c2dbad2<\/a>.<\/u><\/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\u00a0third quarter 2022 financial\u00a0and operating results on\u00a0October\u00a028, 2022.<\/p>\n

    A replay of the webcast will be made available beginning approximately one hour after the conclusion of the conference call.<\/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, 2021 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