AllianceBernstein Holding (AB) 29 Jul 212021 Q2 Earnings call transcript

Thank you for standing by, and welcome to the AllianceBernstein Second Quarter 2021 Earnings Review. At this time, all participants are in a listen-only mode. After their remarks, there will be a question-and-answer session and I will give instructions to you on how to ask a question at that time.

As a reminder, this conference is being recorded, and will be available for replay for one week. I would now like to turn the conference over to the host of this call, Head of Investor Relations for AB, Mr. Griffin. Mark sir. ahead, go Please

posted after you, Angie. quarter Kate second us is welcome and our presentation everyone, webcast of Relations our website, today CFO Good Ali XXXX earnings morning, to the and www.alliancebernstein.com. that's company's slide quarter a call accompanied and the review. Investor prepared Burke, our join Bernstein, and our Head section to by Thank in results the This being us Seth questions President Strategy. COO Dibadj, for will With for of discuss are remarks. and conference CEO;

Some of information present rules SEC and today is the to certain subject disclosure. we'll regulations regarding and forward-looking

the like point out Harbor I'd presentation. to Safe on Slide language So X our of

Harbor XX-Q, public quarter language nature of FD, our second from we which Safe management questions investment MD&A morning. a our of may community the find forum. Under XXXX in material the earlier also filed this Regulation address can only You in

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I'll Now, to Seth. it turn over

you, thank focused Geographic equities the and morning last all ESG, time quarters. joining the channels to differentiated continue and led for alternatives for and active way. organically three grow in you Good quarter, we the In the second four today. offering third municipals us across diversification client Thank Mark. including across multi-asset

million. record while Our maintained short and long-term an above investment both equities institutional pipeline our $XX fee performance fixed income, improved and across annualized base

growth margin unit both organic per posted XX.X%. quarter, adjusted the X% unitholder. expanding XX% distributions adjusted active we of in per and to For while our We delivered growth operating earnings

third in quarter as billion organic in fixed billion X% for channel of the strongest net the inflows in net continued client Institutional business. private last seasonally XX% $X.X year-over-year, quarter driven retail retirement excluding of million sales multi-asset engagement And inflows growth X% our the equity. of transaction growth offset rate. four. generated Retail sequential solutions sequentially. $XXX been each moderating $X.X reflected million, highlighting again while what once $XXX income, a than billion by historically inflows represented the the quarter active Venerable annualized were of flows active equity $X.X net the from $X.X sales and transaction. X. growth Gross from ago. annuities outflows ever XX% increased AXA more the inflows Net year with or associated Starting with and prior up years were the transaction. increased were rate X% $X.X rose overview pre-financial sales XX sales our $XX.X sales flows the X billion prior quarter. X% organic of a year-over-year Venerable flow quarterly Once Firmwide levels billion, management up specifics. active second quarter up end X% year-over-year again Slide XX% access of the up sequentially. billion Venerable billion X% the and were from Quarter only crisis under growth by net on into $XXX get Venerable Let's or AUM the were were average billion the net of of positive declining taxable the $XX second annualized Net of in XX% balance quarter, of and with to excluding and channel. assets ago, led and billion sales Slide has trend and sales growth X% wealth firmwide second sequentially. and redemptions, $XXX Firmwide shows to our slower

returns governments U.S. surges. developed transitory positive look as Starting beginning lifted rising vaccine growth second were to X.XX%. markets in X. turn inflationary basis XX yield let's to the outperformed in XX credit term to the Europe with amongst diverged investment income, Slide with the on developed year points Now fell investors rollouts, expectations bond in while as yields in by performance quarter markets fixed near and U.S.

XX% performance income of to three outperformed five assets XX% period, fixed outperformed over over period, and period. our year a the as continued year XX% income fixed the of over strengthen, one assets year Our

of Our global offerings and which across generally X% benefited of high exempt from XX credit Tax Strategies to XX. global credit. relative all periods. and decile performance was outstanding, quarter then Morningstar down yield, American included positioning post to which continued funds peer all multisector XX and top quartile to from top underweight across an the ranked in in and six duration in retail overweight the ranked municipal our the periods, group all income

vehicles drive Our including annualized rates. SMA continued to tax aware double-digit organic growth

the the the XXX stocks with in of time to improving the lagging XX% one-year expectations and S&P for in later the the rise with S&P percentage growing was Through up the five our period, period. in shown that the of second with in in quarter as in dividends year Turning MSCI outperformance favor year-to-date, almost parallel XX% had each period. X.X% strengthened outperforming out Interestingly, second expectations continued expectations. World rates quarters this period, the year assets for the to period XXX earnings return same S&P up over year the has XX% matched the rise quarter earnings term growth by while regained after three the June, stocks quarter. risen retraced. Equity longer XXX XX% in earnings and equities. for In markets prior Growth much exactly XX% X.X% interest up the of equities, factoring

growth outperformed including core growth, concentrated U.S. cap Our and and sectors in selection technology. healthcare large by strategies global stock global aided and

as focus client on on to Japan, Slide X. Our equity to broaden in strongest well on our section equity on Beginning channels. which in up gross in quarter Net from billion, the annualized record, active firm sequentially. XX% sales organic and year-over-year, were the straight global inflows. an like equities, second again we'll X% stock the continues by were driven services benefit Once clients, existing up of next distribution XX% XX $X.X inflows growth relationships with retail expanded countries as active

Municipals helping billion to annualized prior improved XX% We continue fixed grew quarter. offset and to income by redemptions U.S. the taxable American as sequentially which drive versus moderated retail positive flows outflows, by Japan. in income $X.X

chart, of a on with the net continues have balance of sales, We consistent Asia the XX% globally organic compared positive U.S. XX% than XX products managers. managers. XX at XX, We basis, with funds notable International ranked generating asset balanced bottom managers Muni's ex-Japan and $X our shown XXX classes ago. EMEA, just diversified U.S. Several sales. ranked of XX drive out upper growth shown more of As remain funds on product the with of ranked diverse a sales, XX net Xth, now as On quarters. to each offering XX% inflows equity year a LatAm the retail and channel the left last XXX equity funds billion of across individual Japan, flows XXX and XXst of right. are

Slide X. Turning on institutional

net $XX.X passed quarters quarter, Solutions second quarter, A by this seeded the gross were Venerable a European excluding billion milestone income sequentially driven for in essentially was related XXXX, XXth than growth and are XX% XX of sales Venerable funded active and outflows Customized billion now AXA incurred last value arbitrage last the with merger achievement U.S. equity quarter and $X in redemption $X.X related the strategy Lifetime AXA X% and solid feed Active billion a this $X is transaction sequentially. quarter complete. given of growing of $X.X the platform. for U.S. in and Solutions Also Equitable this driven program announced CRS since more the in year-over-year the First the quarter. we in seeing billion million of Income which inflows. up slowed the LIS track active lower redemptions. ending the in concentrated redemption up interest strong above three This equity by the billion mid-cap LIS, them sales Fixed We've which Retirement $X tripled billion, year sales vehicle sales the we of XX AUM growth. now posted its early record.

solutions, strength talented client globally has of redemptions, broad teams. Our grown the and relationships institutional inclusive channel highlighting our diversified organically of differentiated these

investment Our of in The half up RFPs to also period. first concluded Climate year a enrolled affect with its risks with sequentially AB’s billion, opportunities the U.S. academic up sustainable sustainable first and climate by issuer collaboration levels. versus launched global can $XX macroeconomic of and Columbia portfolios integrated times how from prior of the year Academy over ESG Investment world. were University, which We XX% thematic kind and the analysis income portfolio our Academy, which AB for And the purpose three the Change clients change grew around to driven platform, scientific X,XXX and

large up XXXX base alternatives half million CRS $X compound since base. $XX.X record annualized billion pipeline annual driven institutional Our The to began principally XX% of a at XX% fee exceeded end sequentially grew in tracking the by mandate. we fee quarter or $XX growth over a billion

Moving inflows net built seasonal management campaign sequential and $X.X of $XXX today's campaign, environment. in aware Slide second tax to slowdown. X% relevant in of on fund efficient Combined of generated focused XX% successful highly our sales private private year-over-year in million $XX Fund a new in funds. equity over qualified X investing Opportunity reflecting a billion the year we with declined We wealth is increased lower million, gross with and a which earlier redemptions, raised close on $XXX cash the our tax sequentially. on of million We

We and innovation also a intermediate two launched an bond technology ESG fund, new global offering focused fund. and disruptors sustainable duration and products

managed sequentially. stands harvesting XX% separately equity billion proprietary over loss, now product loss $X Our of tax at

and with and we're prior XX% more remains portfolios year-over-year decreased shown Research to continues review at finish as volatile with volumes reflecting trading sell right. to muni compared side business Growth by ramp continue normalized down Our healthy revenues ESG the more Slide Asia in grow as Bernstein I'll XX. strongly. sequentially, on institutional periods. in NDA our with bottom impact XX% X% the commissions strongly trading on

the attendance of most We we U.S. over engaging the research Annual second Executives checks as year-over-year. by are strategy influential progress Slide intense again the Surveys, high sales up XXX exemplified in our from I’ll with and written Decisions our being most with successfully first companies business XXth year-over-year Strategic and research in quarter Portfolio highly largest XX% Once XX. best most our investors and in one towards Managers ranked on as world's number Conference evidenced increased Greenwich clients quality recent the X,XXX ranked close overview coverage. in by

or improved in XX%. two-thirds performance term income more the in Near while outperforming period. strong to at three assets both performance investment income fixed five-year of equity and with Our and and of outperforming fixed continued equity quarter XX% sequentially now the improved assets,

of XX is with product driven positive balance out and active of the organic the eight four across XX for four last our three engagement Private growth growing and quarters in last positive the with the last geographic grew third quarters client of channels across nine the Our now tax quarters institutional were and quarters. inflation suite. all Wealth last of retail

up with double-digit at portfolios growing we're assets purpose in annualized ESG municipals. multi-asset rates Our at under XX% and sequentially. And $XX alternatives stand billion management in

to We are our managing to margins. strong business operating deliver committed incremental

Our unitholder second and earnings XXX XX% XX.X% margin up prior adjusted the points operating was of adjusted basis period. versus distributions quarter of year year-over-year with

Now, it our financials Ali the update with to followed by equitable. walk relationship Ali? Dibadj an strategic I'll to through turn over in

Seth. Thanks

on the income statement Slide Let's start GAAP XX. with

substitute increased and Second operating year of quarter always, increased period, XX% in $X.X of income billion GAAP considered operating the results, core on increased not provide XXX in XX% of we the remarks margins from I'll remove and from results. the revenues XX% which our my here GAAP of are XX.X% million prior unitholders results, quarter business. our effect $XXX our addition part as operating distribution net our focus basis not by a adjusted items points. as to adjusted to of certain year-over-year EPU We $X.XX are of on increased base by which GAAP that for

reporting GAAP appendix, and adjust press in our Our to standard presentation results release and XX-Q. a the of reconciliation GAAP

across we as beginning financial with highlights XX, revenues Slide shown Slide increased on XX, higher for increased fees prior versus second Base average three which versus channels, quarter, grew higher period, of I'll adjusted revenues, second shown P&L Our through all XX% the AUM, XX% in X% reflecting the a On which on rate. the and quarter the talk net distribution Slide year the $XXX same fee XX. prior period. million on year are XX% touch

quarter points fee of marginally second was rate higher sequentially. The XX.X basis

averages, added be the CRS We long-term may mandate our rate such to that this continue given believe billion $X large be time-to-time, although fee as grinding the volatile that may trend quarter skew higher. mandates, from should

versus primarily, increased performance million fund prior fees our Long/Short quarter million period our market in Select Second of middle year Equity lending $XX private business. U.S. to due the $XX by

for revenues quarter COVID-XX year higher pandemic. of activity for driven market of the second trading Research Services amid the quarter X% Second the a decreased by reflecting by volatility Bernstein onset ago, outside XXXX, client

Moving in operating revenues. secondarily million quarter primarily higher to incentive the our expenses base adjusted due XX% expenses, of higher to second and to year-over-year. compensation all-in Total by increased both which of total XX% increased benefits driven quarter, and expense compensation second compensation, higher were $XXX

year, adjusted quarterly a As second market with a continue, With we quarter the XX.X% revenues net our guided compensation for the second current may the of flat revenue prior change. trends ratio the you year the adjust conditions to compensation was for debt half XX.X% accrue at option we of with period.

our year marketing the should benefits previously expenses, for in modestly piece G&A. fringe quarter, mix, transfer which to for the comp up ratio expect mentioned, our second have expectations increased and that we as higher become as previously, ratio up. related due bigger consider COVID. this as costs ramp well may drive stated full a and fees of As Moreover, Promotion XX% performance servicing higher should post comp year

forward, Looking of levels more in to promotion meetings levels servicing to closer begin and half to expect second normalized XXXX the and spend travel as resumed. return we

including pace related increased period second Nashville these remains the the pickup occupancy X%, uncertain. prior So expenses relocation versus X% All-in expenses. year in which the G&A or same by quarter, at

build estate and translation For the the errors platform real drove costs higher including launches portfolio European well due increase. commercial second foreign as to and quarter, outs, higher as platform, service our exchange fees, fund debt trading professional

that expect charge going relocation other continue historical $X But the associated inflation higher the excluding by ago, amortization with acquisition. We that expect will million to amortization a from the be we to year forward. reflecting the be note once again do full G&A aligned declined with expenses, national intangible of likely Bernstein inflation. year expenses Within absence quarterly expense,

quarter Second the expense revenue outpaced income versus XX% prior period, $XXX of million increases. as growth operating year increased

of basis was XXX points margin operating compared the business. our incremental was XX.X% the quarter period. second Second The reflecting year of up margin XX% leverage as year-over-year quarter to operating prior

not on incremental to business of time. margins to necessarily but every over the manage year, to XX% XX% continue We average

L.P. rate now update earnings. to with nearly XXX well. from for second our The quarter expect based I'll an XX% of planned X,XXX. our go quarter reflecting X% between which X.X% X%, of domestic mix At the a of continues was We to effective Nashville, tax AllianceBernstein we tax X.X%. prior XXXX way to corporate off to employees to effective greater for sourced down guidance of Nashville had finish an on headquarters end, X.X% target relocation of

headquarters new we major began office and downtown which moving our part India, in our which U.S. American included Nashville building into mixed well at fit Health-Safety the in National an Music. commerce, returning the which seal The unique July, building. in the state-of-the-art For includes of offices of to use WELL our Silver Museum received integral complex, is LEED the African as as rating, new a

thrilled We’re best-in-class welcome they into wonderful back employees headquarters will this amenities. to building enjoy

headquarters ensure new critical adverse to robust system under conditions. also Our architecture operations was from benefit

$X of corporate national costs. unit. headquarters $X relocation compensation million $XX increase related of related a million, second income, savings transition million one by occupancy our the million quarter, million, compared operating $X per Of to approximately million in expense offset increase estimated net approximately set $X savings net in or $XX to a The cost resulting totaled is

around accretion unit For XXXX, continued thereafter. per $X.XX year each increasing expect we to

savings annual a XXXX million. to in global quarter's towards of and upper expect alternatives $XX our ongoing transition continue $XX the highlighted range over is leader the beginning of to We be alternatives. to become in once On path expense the call, business we earnings private end last private our to million

and it thought context would virtuous few news with to manager flow. a in discuss asset minutes further Equitable we our recent to the helpful especially insurance quarter, spend This of detail in be cycle

of XX, our recent from strategic Turning played as growth. to timeline Slide towards the first years the role private as our accelerated part have alternatives, long our including together, most commercial critical of real history Starting committed the time, and offerings Matt Bass shows and XXXX and have of to the have in access a capital recent evolution of Equitable us of estate earnings commitment in beginning private vision and seed illiquid investment to its relationship in has predecessor $X.X XXXX. AB Equitable accelerated portfolio combined together European seed which last left, The our AXA, a with debt Since call. Equitable billion got of billion, collaboration that development and pace platform, build invested on new the in businesses the our Equitable this has enable IPO. platform. $X quarter's to

offerings. occurs and adjusted which AB’s platforms yield private other its benefits it's and exist clients as higher virtuous dated dated fees definition, fact, in the general longer In of capital, provide AB two current Equitable so risk by to between length Management standing ABC cycle Equitable Management Equitable is and Equitable delivering Committee a account. on Investment doing long capital agreed updated helped indefinite higher ensuring our for our This invest to Equitable also an with initiate year, alignment by recently illiquid further execution the differentiated multiple which between also expanding has companies. to and is suite AB duration We've joined seeds growing has provide companies. objectives long cycle virtuous and improved alternatives permanent service with strategic assets agreements and two and investment this Equitable. earlier

inform meet and businesses. multiple it's increase third-party by high enables to have committed its capital Today, times driving a multiplier powerful that of these effect own this growing scale conceded already in private to private that next provide initial even alternative private build twice current Equitable years business almost owner. is for private allowed of and stakeholders a from grown a billion It of in to Equitable AUM our we're This the AXA capital Equitable has beat, we capital to seed three offerings further, have at for is to important commitments out to over billion a majority including placements. $XX committing AUM objectives AUM All AB’s to alternatives permanent business. total capital note four a at illiquid $XX amount the is pleased which which

private $XX billion Our another placement is AUM. in business

Equitable the clients, allowing We stakeholders. other our perhaps expect account, XX% general continue both us shows business, another. deliver from for that but well to not clients to growth a manages which is billion XX% accelerate and XX private overtime our unitholders Equitable, inorganic our currently this alternatives anticipated immediately, and capital and in organic Slide employees, $XXX separate account is of AB to

grow alternatives. new through well of scaling capital manages billion inorganic realized three seen which our reallocation new capital next adjacencies. extending new segment, currently core growth some from growth of The has general permanent other account, funds, as of highlights over be us significantly considering showed XX, incremental to existing percentage Equitable and growth AB into and AB's will XX% enhances some committed the the the organic be quarter, clients. times in permanent $XX follow-on capital Equitable approximately targeting years, existing will to AB again, investments four as which from of poll prospects [CLO]. and past allow billion and $XX the flows funds, clients which last As of funds strategy will our Slide we

We XX permanent private side, commitment inorganic differential highly On allowing our teams, valuation alternative fill into to managers, reminder valuation, attract be anticipate large organic, retain qualified that focusing a and through Equitable ability scalable between enhance Equitable will prior multiple us. the not Slide growth higher and in private on while a markets. effect creative traditional AB over to commitments. just with growth higher overnight time. all us of and to Equitable turn the capital multiplier gaps to business, will growth our help should highlights permanent in accelerate illiquid as capital combined but shown

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Now, it Seth. back I'll to turn

Thank you, Ali.

expanded on XX. rate, and vehicle. with quarter, we've Turning and funding platform We higher Euro equities, X% a by alternatives first the CRED previously dimensions outlined, the new our channel Slide multi-assets we annualized spanning continue of across active our merger Equitable to a arbitrage In active the each progress municipals. drove fee receiving suite we make growth namely, led

strong the set yield healthy commitment As will billion to accelerate growing goal. our highlighted, in drove years in our three with opportunity in Ali next mutual alliance Equitable's strategy. line of We enhancing their just long-term interest private incremental illiquid in our the margins quarter over significantly $XX alternative

unit to have a second questions. the a we rate your environment. that, per durably tax for take partnership, a low of for a will X% As distribution we're robust pleased low to month trailing pay $X.XX yield in we a quarter XX With rate. And

Bill Citigroup. Instructions] Your line from question with [Operator first comes the of Katz

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Sure.

the So for well. of Equitable. private of like people all right, firms news step seen thanks this And think be as thing We not some but you're This who $XX suite. AllianceBernstein incremental, yourself, for the meaningful some is to covered type question. and should a unfamiliar you've it it And alternative the is our flow, is to illiquid some that billion. reallocation,

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going the desire that with exactly given dimensionalize billion, of managed clients as building insurance to serve do their we how private we the a behalf together to have also a unitholders, of more going we're and employees business. remarks, a build and bit insurance we're could more well, it it, and and Equitable, and our their growth XX% grow prepared that and as about well. mentioned other grow what $XXX to growth what much Equitable for we conservative businesses we subset about in yields for for be we in insurance of But further about clients exactly $XX billion serving to improve our inorganic for on AB, us stakeholders we're organic think as background, that's little needs, freedom new or alternatives We XX it's prospects,

follow-up And my helpful. taking then this questions question, just morning. thanks for that's Okay, both

expense at unpack pretty it G&A, into that. fall things and the to there If your I that bit. Just whole was maybe discussion is of little of sort up a bunch a measurably, look

of might whatever So sort commentary of How the the sort your just that sort line the what's to second be the that the year. right pace And or in thinking of of Thank that? around temper maybe way back that is we pacing some are promo exit XXXX should to normalization other on line, mean you. then half in for and wondering be with baseline the there of of like still growth the along of about can offsets modeling the normalization? sort

expense One given as that G&A T&E percent a X% particular, about incremental a type perspective, that basis. in relocation includes servicing. G&A, driven X-ish that and were on a Sure, talking about you one you'd we right. something things, let's buckets. year-over-year tell, that a segregate be relocation Nashville about from to like G&A Nashville, can G&A and two question in the From That take grown out, into has if was by few growth

commercial real debt also for Some for products, example, are in continue some European plans goes fees are estate in we much along to professional partnership that of launching them FX, platform, which things are There those very the as that trading year higher in high portfolio there, with expect Equitable. number. that errors, costs of And in the our types is we had on. terms some of new growth,

stick grow we costs, that Now, would we is guidance that continue is, expect Nashville relocation which to with our say the also what previously I'd inflation. G&A excluding would

from Now as by real now really than guidance bit coming think seeing just data some G&A we've doesn't remarks, said inflation our we interest, way a that from line little in are costs in services inflation prepared probably But it. change the was way, before. fees. the is by professional market it of we higher And

open So wide managing our continue. eyes about that, will but that

the So that's G&A of kind part.

be We're all up. cost Think delta and and obviously triple driver say going I those hard watching is that for sometimes out those an the about the the what T&E, - it's meetings, in little next doubled, example. watching say careful. so big servicing promo firm i.e. that back meetings, we're come over to Asia example, and for what is mentioned here. of being up. things Now, say will watching of it's doing hard ramping are go you year-on-year there Those to But as very in right, back fair and we're are of while some we've us and to look expenses, ramping the for T&E to

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relatives you. there's to all lot from So run an watch upside savings XXXX here. numbers, I to sure answer what that even to few I'd months the a our to have over we'll certainly the more next e-quality, is some stakes, like all and our yes to for a I for of perspective. stakes What great live but that of for Bill don't e-partners e-clients, see room here get we know you I course And hope do of

watching carefully just we’re So

comes ISI. Evercore Your with Dunn next question from line the of John

about Just and puts flows private the thinking takes in and channel. framing world the

harvesting tax seasonality. of other launches, can fund in and But talk or drivers mentioned maybe out? the You you about some

that the take question. can I Thanks Sure, for one.

more cash see cast did year only continue not out to strength campaign active having the move from in were back into we where and our the we in market. of So earlier clients

we new think environment. We tax which also relevant today's in aware is launched a campaign, highly

client’s so you're our engagement continue to wealth of a lot the And us. seeing there drive with advice

invest inflows We and think are high space additional clients, for value grow are continue and nicely and complex what half provide and which of particular in and will offering year-to-date. the our portion to to SMA core the we back see substantial alternative, additions our ESG the good platform that in to to continue to year net in product launches of

breakdown continues equities that do And give really a from? of growth kind where you is regional then us demand well. Can coming of U.S. to

Sure. particularly prominent States in and it's in Japan Japan, demand principally globally. us and us been pretty year. been has the But has been a performer The United for this for strong

Your next Goldman from Blostein Alex line question comes with of Sachs. the

This question on for is in filling [indiscernible] retail. My is Alex.

some strengths across We the lately industry. have seen here

if sustainable on at So income how are what's kind have mean, pretty fixed inflows the these then strong, And flows driving I the AXA the redemption. AllianceBernstein? been side, you exclude of And flows?

forward, going fixed levels your for flows of what's for inflows like sustaining outlook current the you. the the So the ? income outlook under rates these Thank to keep interest given

large we begun with of - and but our continuing for group U.S. was as fact market had And to. takeoff it we you for early it's remarkably in in And alluding the our value, that those estate the and debt been Europe. particularly shorter of pretty both we've lending of forth. purpose, U.S. our seen extended new still real middle from strong for private selling so really our in sustained inflows and term. Look, also have a that We've the raise pretty in with services performance which demand, net opening business, interest mentioned ops efforts perspective Thank we equities strategies, to we've said which comes Ali our portfolios to But period a a we've even see we've And days have in commercial an over strong in are think nicely have diverse we're had see seen business share. is continuing business comments, taking money increasing in to interest the cap our in strong sustainable I up time. question. picked have from pretty maturation growth,

now In seen I'm pretty as multi-asset our very that group, LIS although back that taken But quite So would last of to in have going strength. diversity quite it's our I diversified seen rates down fees have in income a target again, sorry, higher large, that a in we lumpy the be think fixed there our played customized over be rally can here. those retirement in activity don't lower we've month. our that likelihood rates areas. from think specifically, indicated solutions and But to also we the look, us been add more remember, comments, date we our are - sustainable. in tend so that's we've has necessarily And

are we our our expectations, of transitional There real it's it, of view. harder talent out fact, In in our industry while do in we've building rise people as seen hire certainly most rates there. impacts and shortage in recognize the people, in are to some think will there's inflationary

rising, time for fixed consequence is clients. yield The rates be that we pressures. our matter income think are of is to beneficial does there will So over really that

income, just been. I fixed the surprised outflows in look I am where pleasantly so, And have actually how tempered

from Chinese has well higher GHY. fact, like are income there away very previously demand alternatives, whether Asia siphoned have performing yielding in AIP moderating There obviously our may look, the services but been products. from been But fickle. other it's demand at further historically have be In they've not Asian and been are equities, performing which that moment

pool again a a So diversified of look, think I business. - story it's of

continue service really SME, And our I U.S., tax demand differentiated vehicles. interest strong business in I think are seen think we in tax has our concerns because think or provided efficient I growth, to drive more SME here the mini to clients.

I levels story, the is, we multi-asset, equities of sure, think for more then I for us, a business but given it’s at and mix think it's manageable alternatives So and it have. mixed certainly

comes question of Dan Fannon from next the line with Your Jefferies.

Dan, I Roy This thanks filling in think is for its for guess Ritwik question. actually taking morning. my

G&A previous uncertain? think the the from as idiosyncratic in of guidance the is run pre-pandemic on that rate. example, you. contribution follow-up guys presentation? say just should appreciate eventual the detail that of sticky any in given can and Yes, and as that. the think items And thank your Kind the guys knowing kind And that the How of we provide the would around normalization guys to you will these understanding of quick you as earlier? How about Moore's savings for expenses, guys sort to around on levels So much detailed broadly, the errors and that some numbers you relative follow-up like, you mentioned as well if incorporated were more you what this? be then, a trading mentioned timing you seemingly and a of would degree about say

Thanks, Rick.

of parts one right some one-off of the of in on that two is, things question, our G&A. kind So

look, ever one - others errors trading things them, in they particular, sometimes trading bigger wants on head these happen, everybody tackle Sometimes business, we right? You errors no right. are mentioned in that than has as part the of

in model terms seen guidance. impacts the in our in for it, other errors rearview you don't is it. product to our of we've all don't mirror G&A you But what is our So plan and for

manage we year, very that, we've point inflation, So as if we to believe go well relocation we'll so these to be that look line that expect the it to away far, as costs, with what we've in you Nashville for and again, take along. in we the even the by full we idiosyncratic guidance, stick to year. of But believe end that is events just get delivered and we our and

that look, the There's of versus So spend” numbers “saved” we've mean before, million exchange little of is hopefully the think there's back what - I we'll we foreign but think halfway guess that an through would we before bit is is. gave covers that savings, launches probably et sense cetera the and you about have a what I there, of it's by million, that we in is guidance. broader and is XXXX year, you all it articulated year, not year? we $XX we come north the believe year this I On But It's a in $XX new see $XX Do of last a science million. “under know, there. product numbers. the it about think imprecise not. just if that last it's that you right way still

relative that number. hope is find Our the we savings to XXXX can

articulated how We And but that haven't will travel us colleagues differently. that clients think interoffice might want differently. something see to we much, certainly exactly

that exactly XXXX And be will XXXX. find that savings we tough it's so, to in travel we'll some will some the say savings saved to however versus There it relative in level all costs other at. But there. be what and $XX million

KBW. line Your Robert from of a Lee with next question comes

mean, of Thanks my for you and any you private the experienced recruit could would for just some and mean first particularly, on any yourself. particularly there interested But go of curious and know, new you're don't update out of if you seeing no financial be management growing one initiatives unless questions. issues kind maybe on on growth of taking retention talent I as out wealth there, war given kind or pressure you us forces I they like? the go seeing advisors, the with you're know them advisors, I and train kind if I advisor guess

So thanks the question. for

new on initiatives, And hit X%, of X% up XXXX. in growth in track our with So year-to-date. for we plan we're advisor on terms target advisors are our it's our to headcount, growth

advisors, know, to finding through, do talent then I force. you have advisor best-in-class we said, the new we training as So to our you continue here. put success think them great grow in like our attracting and program And we

seen that clients when wealth that's to continue we with as are and Bernstein's on pleased our in they turnover to really with are pressure So of out that there with terms there existing out strategy are competitively is represent much in compensation best of previous do advice. pretty they years. the industry, we've And We the in investment pay and average today, and able the us. certainly know for

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intention proprietary out third-party advisors you maybe similar on that And as indexing, competitors, arms you've kind direct the make it Do of you in current touch keep roll the know that clearly to about. and product I thanks. a capability tax you the talk remarks plans take the through in a in these have mean, invest space and follow-up, acquisitions Okay kind being in didn't - prepared of or half? any can current you seen

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sustainable alternatives out ESG in said broadening midst it that talk about of Ali of conjunction product portfolio to in We around XXXX M&A with about construct. in platform. driven well. we're offerings have as then and and also improvers, look And in the team, launching to in example, we terms that's to launched, think partnership several I’ll we over we that turn continue in sustainable retail where the for our then as in purpose SMA,

question. the for thanks Robert

are the think for Just on for needs what to know, understand the what it’s all about It’s client, right. build Kate Kate mentioned client about exactly the the right. we It we build should and wants be success as what in partner, us delivering all client all - And once buy, what said or in we you client. the we, it three, right. we clients question delivering becomes we of then to the have

building have of terms We things. in success

- there, other there's fulfilled mentioned, just something what really tools track is there. look on over processes, partnering everyone not very should the is billion for also harvesting we as a a acqui-hiring, And tax need It's the product there's more certainly mentioned, even that's a investment past of I'd out look hard that say, there's our and you to and phone, growth exactly a Kate that we at we an look a in out as lot at that with thought a But as record a at good there. knows, carefully clients well that's record we sleeve, other very, have we've option, say, said which track there actually buy there's not track. quick, And or built support about in successful. at crossed quite I'd as product the indexing that activity outset accelerating acquiring I have, You think said, that buy we we there. pretty if believe quite or that example, as we've had we want. build, partnership can partnering. And robust $X continue folks, we quite the want custom and Then long

be there areas integrated trips. our we an are want view we holistic the so that we certainly those investment bring better because delivers to can and private to architecture We wealth clients. But only offering partner believe we where are team, and everyone, in particular, business won't for

all at the dimensions, under and all umbrella three and looking same we're maniacally of being it's centric clients. client So

comes the Our Katz of Citigroup. from final Bill question line with

sort might effect the to a And that in you Just is sounds you. little just that the either have the taking we're the you're question. direct the a of Asia-Pac, it particularly just absolute lot follow-up, flesh me. headline Thank in Can a instinct two of commingled be on issue. does part think thanks the China then door? Mainland equity mix out this more of coming area, given But which of portfolio, or a any spillover maybe of a follow-up, sort so what LIS level bit to risks conceptual of seeing doing I in a just in what question, accounts, terms

LIS Bill, is in some key one contribution with institutional XXX(k) created back and option plans plans. a in the annuity XXX(b) the for our clients years we build partnership of to an structure fine

public fundamental you, forward option where - facing most. an know number is of is interesting we insurers to We give an can who There annuity who want today, is in people plan sponsor moving portfolios, a participants think their are I many a have think, the which issue - America the we under facing access is different now. that what important those I a Act option for better much become important more for The it can the subset are and a reshuffled deck to sponsors of for has then year, plan option the saved period. annuity psychologically the was has think Secure population. their initiative very structure having last And an security before, post-retirement it retirement made this for of default policy

award these and are through considerable through and we so that real But execution. amount time stage, VRP are long And seeing very process there. ultimately of take decisions interest

equities over we're Switching vehicles how have I train, like moving in United out commingled and the the manage we executive been how money opportunities fall of States there the Chinese portfolios AB's. the doesn't, So outside in understand that that out impact adjusting responsive our come United managers It orders portfolios will of other we for but a accordingly. to those slow as be do Washington States. optimistic manage it's look to them, us China, with we've impact

And so impacted portfolios. in it we portfolios for for us onshore the example, we in our hasn't way Chinese A Shares can - we've or the manage managed that clients really fact Mainland an in portfolio,

I'll questions call turn are at no further Mr. the time. Griffin, you. back to There this

this everyone, And free for Feel Thank any contact participating you, with Good-bye. our Relations great to questions. conference further in Thanks, Angie. have morning. Investor call a day.

conference today's concludes This call.

may disconnect. now You