Alliancebernstein Hldg L P Stock Price, News & Analysis

AllianceBernstein L.P. (AB) and AllianceBernstein Holding L.P. (AB Holding) announced on November 12, 2024, that their preliminary assets under management (AUM) decreased to $793 billion as of October 31, 2024, down from $806 billion at the end of September. This 2% decline is attributed solely to market depreciation, while firmwide net flows remained flat. By channel, net inflows in Private Wealth and Retail were counterbalanced by Institutional net outflows.

As of October 31, 2024, AB's Equity AUM totaled $333 billion down from $340 billion in September. Fixed Income AUM was $297 billion, a slight decrease from $299 billion. Alternatives/Multi-Asset Solutions stood at $163 billion, down from $167 billion. Overall, the total AUM dropped from $806 billion to $793 billion.

AllianceBernstein warns about concentration risk in climate portfolios, particularly regarding heavy exposure to US mega-cap stocks. The MSCI World Climate Paris Aligned Index shows significant overlap with broad market indices, with its top 10 stocks accounting for 26% of the index and 33.5% of risk. The firm advocates for a more diversified approach to climate investing, suggesting investors look beyond carbon emissions to consider companies across sectors that are enabling the energy transition. They emphasize the importance of integrating quality, climate, and price factors in stock selection while maintaining proper diversification to avoid doubling down on risk when combined with broader equity allocations.

AllianceBernstein highlights the growing importance of physical climate risks in investment decisions, beyond traditional transition risk analysis. A CDP Worldwide survey shows a 24% increase in companies acknowledging climate change's direct financial impact in 2023. Physical risks, both chronic (rising temperatures, sea levels) and acute (extreme weather events), can significantly impact business operations through property damage, production disruptions, and supply chain issues.

The report emphasizes the need for localized risk assessment, utilizing tools like the Natural Hazards Index and Aqueduct Water Risk Atlas. A case study of a Brazilian state-owned bank demonstrates how physical climate risks affect financial institutions through agricultural lending and insurance exposure to extreme weather events.

AllianceBernstein (AB) reported strong Q3 2024 results with GAAP diluted net income of $1.12 per unit and adjusted diluted net income of $0.77 per unit. The firm's assets under management reached $805.9 billion, up 21% year-over-year. Active net inflows totaled $2.2 billion, led by Fixed Income gains. The company recorded its third consecutive quarter of organic growth, with Retail channel generating $5.4 billion inflows. Operating margin expanded to 31.3%, up 330 basis points year-over-year. Investment advisory base fees grew 14%, while adjusted operating income increased 12%. The firm declared a cash distribution of $0.77 per unit.

AllianceBernstein's research suggests that multigenerational corporate boards may offer unique business advantages. Despite only 5% of board directors being under 50, age-diverse boards correlate with improved operational performance and shareholder returns. Key findings include:

1. Generation X directors linked to better financial performance, especially in R&D-intensive firms.
2. Greater age diversity on bank boards associated with higher-quality earnings reporting and reduced loan issues.
3. Multigenerational boards facilitate smoother leadership transitions and expand future leader pools.
4. Companies with the greatest board age variance produced the strongest annualized returns from 2017-2023.
5. Age diversity appears most valuable in innovation-oriented sectors like technology and healthcare.

While director qualifications remain paramount, AllianceBernstein argues that age diversity on corporate boards warrants closer attention from investors and companies alike.

AllianceBernstein (NYSE: AB) has announced that it will release its Third Quarter 2024 financial and operating results on Thursday, October 24, 2024, before the market opens. The company will conduct a teleconference at 9:00 am (CT) to discuss the results. The call will be hosted by key executives including Seth Bernstein, President and CEO, and Jackie Marks, CFO.

Interested parties can access the conference call via webcast on AB's Investor Relations website or by telephone. The webcast requires audio software installation, while the telephone access numbers are provided. A presentation will be available on the website shortly after the results release. A replay of the webcast will be made available approximately one hour after the call concludes.

AllianceBernstein (NYSE: AB) reported a 2% increase in assets under management (AUM) for September 2024, reaching $806 billion from $791 billion at the end of August. The growth was attributed to market appreciation and net inflows across all distribution channels - Retail, Institutions, and Private Wealth. For Q3 2024, preliminary firmwide net inflows totaled $0.9 billion.

The AUM breakdown as of September 30, 2024, shows:

• Equity: $340 billion (Actively Managed: $271 billion, Passive: $69 billion)
• Fixed Income: $299 billion (Taxable: $216 billion, Tax-Exempt: $71 billion, Passive: $12 billion)
• Alternatives/Multi-Asset Solutions: $167 billion

The distribution of AUM across channels was: Institutions $336 billion, Retail $334 billion, and Private Wealth $136 billion.

AllianceBernstein (AB) discusses the future of responsible investing, emphasizing a focus on material ESG issues and changing client needs. Key points include:

• The importance of grounding ESG approaches in materiality to meet fiduciary obligations
• The need for asset managers to offer a range of portfolios with different ESG approaches
• The distinction between ESG integration and ESG-focused portfolios
• The challenges of evolving ESG regulations and the need for transparency
• AB's climate research efforts, including a partnership with Columbia Climate School
• The role of engagement in developing investment insights and encouraging action on ESG issues

AB conducted 1,703 ESG engagements with 1,296 unique issuers in 2023. The firm believes that ESG considerations will remain important in investing, with strategies that add value through better ESG integration and focus likely to survive and thrive.

AllianceBernstein analysts argue that the case for renewable energy in the US transcends politics, despite potential changes in leadership after the upcoming elections. They believe a full repeal of the Inflation Reduction Act (IRA) is unlikely due to economic factors and job creation in Republican districts. The IRA has boosted investment opportunities in renewables by expanding federal tax credits for various clean energy projects.

Key points:

• Renewable energy is economically viable and fills a vital need for the US power grid
• IRA tax credits can cover up to half the cost of some renewable projects
• Updating the aging US power grid presents investment opportunities
• Battery storage assets help maintain grid stability and reduce infrastructure costs
• Private lenders may benefit from stricter bank regulations in financing renewable projects