AllianceBernstein Holding, L.P. reports recurring developments for a global investment management firm that offers diversified investment services to institutional investors, retail clients and private wealth clients. Company updates commonly cover quarterly operating results, GAAP and adjusted net income per unit, cash distributions to unitholders, and monthly preliminary assets under management.
AB news also tracks AUM flows by Institutional, Retail and Private Wealth channels and by equity, fixed income, alternatives and multi-asset strategies. Additional updates include Bernstein Private Wealth Management initiatives, investment-technology infrastructure, senior leadership changes and ownership references tied to AllianceBernstein L.P. and Equitable Holdings.
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
China's battery electric vehicle (BEV) industry faces near-term challenges despite its global dominance. The country produced 6.2 million BEVs in 2023, over half the global total. However, growth has slowed due to competition from cheaper plug-in hybrids and charging infrastructure in smaller cities. Export growth is also meeting resistance with higher tariffs in key markets like the EU, Canada, and the US.
Despite these challenges, China's BEV industry maintains structural advantages, including leadership in lithium iron phosphate (LFP) batteries and dominance of the battery supply chain. The industry no longer receives national subsidies, contrary to some perceptions. Analysts suggest the next phase may involve industry consolidation, similar to other Chinese industries' growth trajectories.
Investors are advised to monitor for signs of industry maturation and invest selectively. Western automakers face their own challenges in transitioning to EVs while maintaining profitability. The report suggests watching Chinese BEV makers with integrated battery operations and battery manufacturers with diverse global clients.
PRISM 3.0, a digital ESG scoring platform developed by AllianceBernstein (AB), aims to solve the challenges of integrating financially material ESG risks and opportunities into investment portfolios. The platform addresses issues such as hard-to-find and subjective company ESG data, lack of global data standards, and limitations of third-party ESG rating providers.
Key features of PRISM 3.0 include:
- Sourcing nearly 180 metrics from NGOs, governments, and third parties
- Ensuring data integrity and minimizing human biases
- Allowing meaningful comparison of companies within and across industries
- Using industry-relevant metrics for more accurate assessments
- Covering 96-98% of investment-grade, high-yield, and emerging-market corporate bonds
- Freeing up credit analysts' time for targeted engagements with corporate issuers
PRISM 3.0 represents a data-driven solution to turn ESG data challenges into opportunities for better investment decision-making.
AllianceBernstein (NYSE: AB) has launched the AB CarVal Credit Opportunities Fund (ABAYX), an unlisted, closed-end interval fund. The fund aims to outperform high-yield bonds with less volatility and lower correlation to public markets. It invests in a mix of public and private credit across the US and Europe, including aircraft leasing, specialty finance, and energy transition investments.
The fund is managed by AB CarVal Principal John Withrow and Managing Director Roger Newkirk, supported by Managing Principals James Ganley, Jody Gunderson, and Lucas Detor. This launch expands AB's Private Markets platform, which now represents over $64 billion in assets. The interval fund structure makes this strategy accessible to individual investors with low minimums, previously to institutional clients.
AllianceBernstein (NYSE: AB) reported a 2% increase in assets under management (AUM) for August 2024, reaching $791 billion from $777 billion in July. The growth was primarily driven by market appreciation, although partially offset by net outflows. Institutional net outflows exceeded Retail net inflows, while Private Wealth net flows remained relatively stable.
The AUM breakdown shows:
- Equity: $336 billion (42.5% of total AUM)
- Fixed Income: $292 billion (36.9% of total AUM)
- Alternatives/Multi-Asset Solutions: $163 billion (20.6% of total AUM)
Notably, there was a reclassification of $12 billion in Private Placements AUM from Taxable Fixed Income to Alternatives/Multi-Asset as of July 31, 2024.
AllianceBernstein (AB) has been recognized as a Best Place To Work for Disability Inclusion, earning high scores on the Disability Equality Index in both the U.S. and U.K. AB, a leading global investment management firm, emphasizes corporate responsibility, responsible investing, and stewardship in its operations.
As of March 31, 2024, AB managed $759B in assets, with $528B ESG-integrated. The firm's approach is guided by its purpose to 'pursue insight that unlocks opportunity' and its mission to help clients define and achieve investment goals. AB integrates material ESG and climate factors into most of its actively managed strategies, covering about 70% of total assets under management.
AB's values include investing in employees, striving for distinctive knowledge, speaking with courage and conviction, and acting with integrity. The firm is committed to diversity, mentorship, and collaboratively identifying creative solutions to clients' investment challenges, including ESG and climate-related issues.
AllianceBernstein (AB) has developed a climate transition alignment framework (CTAF) to assess companies' readiness for a low-carbon future. The framework evaluates high greenhouse gas (GHG) emitting companies on a five-point scale, from no awareness (Level 0) to full alignment (Level 5). AB uses this framework to engage with company management and inform voting decisions on climate-related shareholder proposals.
Key aspects of AB's approach include:
- Identifying companies in high-impact industries
- Assessing transition risks and opportunities
- Engaging collaboratively with management teams
- Evaluating shareholder proposals based on materiality, transparency, and prescriptiveness
- Balancing the need for emissions reduction with regulatory uncertainties and measurement challenges
The CTAF process aims to support both business strategies and investor returns in the transition to a low-carbon economy.
AllianceBernstein (AB) is set to host the Emerging Markets Investors Alliance (EMIA) 8th Annual ESG Engagement Conference at their London office on September 16, 2024. This event brings together investors and experts for insightful panels and discussions, focusing on environmental, social, and governance (ESG) topics.
AB, a leading global investment management firm, emphasizes corporate responsibility and responsible investing. As of March 31, 2024, AB managed $759 billion in assets, with $528 billion being ESG-integrated. The firm's approach to stewardship and investment strategy is guided by its purpose to pursue insight that unlocks opportunity, considering the unique goals of each stakeholder.
AB became a signatory to the Principles for Responsible Investment (PRI) in 2011, formalizing its approach to integrating material ESG factors into most of its actively managed equity and fixed-income strategies. The firm's values include investing in one another, striving for distinctive knowledge, speaking with courage and conviction, and acting with integrity.