Q4 2024 AllianceBernstein Holding LP Earnings Call Transcript
Key Points
- AllianceBernstein Holding LP (AB) achieved a record $24 billion in net inflows for its active fixed income platform in 2024, marking its highest year on record.
- The company successfully closed a joint venture with SocGen, monetizing value and eliminating a margin drag, while also relocating its New York City office to achieve $50 million in annual occupancy-related savings.
- AB's private markets platform grew by 14% in 2024, reaching $70 billion in assets under management, with significant contributions from partnerships like Equitable.
- The firm maintained a steady firm-wide fee rate, reflecting symmetrical growth between management fees and assets under management.
- AB's Retail channel extended its organic growth streak to six consecutive quarters, with annual sales reaching record levels and annual flows being the highest in three years.
- Active equity outflows persisted, totaling $7 billion in the fourth quarter and $24 billion throughout the year, with redemptions concentrated within institutions.
- Institutional redemptions accelerated in the final quarter of the year, driven by active equities and modest outflows in fixed income due to higher interest rates.
- The firm's one-year investment performance softened during the fourth quarter, with only 57% of assets under management outperforming over the past year.
- Despite strong performance in fixed income, elevated rates volatility affected taxable fixed income flows and AUM, leading to outflows in high-fee services.
- The company's effective tax rate is expected to increase to 6% to 7% in 2025, reflecting a more normalized taxable mix of earnings.
Thank you for standing by and welcome to the AllianceBernstein fourth-quarter 2024 earnings review. (Operator Instructions)
As a reminder, this conference is being recorded and will be available for replay on our website shortly after the conclusion of this call.
I would now like to turn the conference over to the host for this call, Vice President of Investor Relations for AB, Mr. Ioanis Jorgali. Please go ahead.
Good morning, everyone, and welcome to our fourth-quarter 2024 earnings review. This conference call is being webcast and accompanied by a slide presentation that's posted in the Investor Relations section of our website, www.alliancebernstein.com.
With us today to discuss the company's results for the quarter are Seth Bernstein, President and CEO; and Jackie Marks, CFO; Onur Erzan, Head of Global Client Group and Private Wealth, will join us for questions after our
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