AllianceBernstein Holding (AB) 11 Feb 222021 Q4 Earnings call transcript

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

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

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

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

So, presentation. I'd language our harbor safe out like to the of on slide two point

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

questions call. ask this all please such So, during

Seth. I'll to Now, it turn over

today. Good morning and thank you for joining us

last XXXX a to including in each are XXXX. that five. with rates outperforming organic rate of including out and and fixed X% equities, income alternatives/multi-asset, of growth of to organic year XX% a active substantial our fourth the accelerated row increase, results full-year fee in year. We progress. Investment municipals, a active our of grew AUM equity X%, We ESG, growth, double-digit at strengthened, organically Active this third performance revenue pleased and report marking XX% showed

Equitable our exceeded offerings, with Holdings. the a set client-focused diverse fee partnership at Our launched institutional strengthening of time pipeline's $XX million, base we and annualized same new strategic

delivered XX.X%. and both unit earnings distributions growth expanded For XXX the margin in adjusted year, basis XX% points holders. to to our We operating

up each leading the six. year quarter to organic cohort, a $X.X an fourth XX% billion, billion, with a of last to firm-wide billion, grow in of municipals of continued and growth equities. strength active into prior strongest fifth of ever sales inflows X% outflows X% $X.X supported driven Institutional inflows, firm-wide get taxable sale. from by benefit annualized Net the continued inflows than inflows a active shows inflows shown X% increased net overview markets quarter sequentially, $X.X continued slide Venerable year year. bank in in And strongest in XX% firm's prior management, XX% yield $XX.X income, monetary income. net the year. quarterly five the years, billion. from to X% in growth. we posted growth of represented quarter year-over-year versus its $X.X diverged. accelerated inflows record net a our declined led full-year of XXXX. of billion; XX% offset to $XXX Wealth, X% of $XX.X pre-liquidity for income in and $XXX XX% sales XX% the of Fourth net rate, quarter Institutional four. coupled In growth as Year-end planning, sales, central for flow on net fixed yields $XXX increased billion. more gross last year flattening, $X innovative reached resulting Firm-wide over free net ultra-high-net-worth sales up of offset Slide row, suite. shows million, and starting a sales product a one-time -- the quarter of Active with in the equities Slide Starting gross billion, year positive seven. a on active rose up prior or from organic active had by ever, gross fourth to firm-wide each AUM, a annual channel ago, Private sales growth quarter XX% sales focus from with flows' full-year of in year Investment sales Private fixed XX billion, inflows by global strongest driven were with trends. slide channel. and inflows, by XX% $X.X $XX.X We to fourth of billion. billion, growth in X% specifics, markets, full-year Retail trend positive is $XX.X generated Let's helped were sales, the net the led with billion inflows performance inflows concluded a grew I improvement. fixed equities, net outflows and [Ph] of $XXX income its And Retail record the munis Wealth inflows high which $XXX net rate service. The sixth [bolo] of in $XXX a under as Fourth assets including mixed or also of were year-over-year. our net gross organically longer-term annualized the curves organic billion, with on year million, policies engagement of for billion six period, billion the and active developed the

mixed, economic were Risk For U.S. pan-European governments, outperforming all as rose the most growth major yield. yields assets and sectors solidified, year, developed surged. the in and with in high by credit markets let recovery inflation

in all exempt, municipal time all in remained Morningstar tax quartile periods. of their with XX% one-year performance over of decile XX the five-year across top with the strong, across all income and respectively. funds retain and XX periods, XX% of In group and three period, fixed our top Our of assets six fixed assets the the income over our outperforming periods, XX% remained outperforming peer

across XX% bond all in periods, SMA, top and strategy grew X% the was tax-aware inflation including muni organically. vehicles, our Our by

the XX% rallying XXXX XXXX Index with led regaining In outperforming as three-year as December. group Turning highly which percentage until globally equities, is five U.S. XX% XX% comprising World concentrated, relative by with S&P gross strong another MSCI period. [Sales] markets. was for emerging stocks sequentially with XXX U.S. to markets Russell developed composite XX% dipped three-year of up equities, and the for volatility, growth to the the XX.X%. one-year for five-year returns through the and value large did benchmark, for outperform companies strategy large with peer healthy, trailed year [Ph] despite of our outperforming period, outperforming flipped remained of however the the our weight The leadership the stocks repeatedly, period. cap and Three-year its AUM performance period, May, at Morningstar year-end. assets for bouts growth XX.X%, advanced equities caps way,

high-quality with fundamentals reasonable valuations, recovery. strong characteristics markets on companies risk remains in focus down reduce participating and can which market Our while a help identifying in

power business as how pricing compressed inflated may out conditions as earnings We are close paying play or distortions over the past normalize. have will attention as well that two to years

up of by annualized XX%. flows $X.X organically. beginning billion year like U.S., client net our retail or eight. organically over organically and inflows up $XX.X by grew And muni channels the sales annual net sales with sub-advisory. to net X% Japan, XX% would from slide quarter inflows I were review Fourth Record high. full-year up with $XX $XXX Active Now billion, XX% equities prior up of billion, by grew X% with sales on were $XX billion driven billion

XX% of XX% active over again, led inflows. inflows equity to helping XXXX different thematic continued Kong and that straight year large strategies. global outflows. Thematic muni municipals the Economic with strategies Global Financial grew driven on grew $XXX exceeded Once the Sustainable averaging period. left, of In our offset fixed cap published that among Excellence million way and Services by by billion, equity upper fifth was Journal. over to SMA, of inflation Hong our growth tax year-over-year U.S. XX by Fund bond annualized shown XX% products the the sequentially by fourth sustainable $XX.X organic the our Green and the As U.S. won Portfolios growth with income aware, each Award Purpose led net ESG taxable and up quarter, XX% Awards

$X.X billion, including drove and XX% active inflows CRED and $X organic slide gross year year; third Full-year Venerable to institutional while $XX.X We CRS, growth. quarter was the in million third the slower from outflows or our from CRED, ago year net rebounding offset Retirement or $X.X quarter. for of Customized declined of were sales consecutive taxable quarter European fourth Solutions the on passive Debt in equities Inflows billion fixed equities. billion Commercial and fourth a in Real Estate sale. income Turning sales nine,

larger lending business was managers. competing successfully institutional middle against better known market awarded consultants mandates to Our alternative to

alternatives. from base The by reached institutional quarter-end grew $X.X $XX.X majority a record Our to annualized mandate. billion at The billion million. $XX fee which led of global was core equity pipeline

pipeline billion CRS in XX. Our January included $X.X which a mandate low-fee funded

$XX of foreseeable the be fee While significantly XXXX. the to average. in with base continue this AUM, future, retail in annualized $X remains three AXA the pipeline fee AUM manage above than we low-fee for to an excluding With rate whom million channel more times the will currently we respect $XX active first-half billion for reduced mandate redemptions expect of billion

quarter of and XX% last Moving in and sales productivity. fourth to the grew Net strong period driven million each and XX, on fourth quarter private gross inflows in the the quarter, respectively full-year by by were quarters. year-ago slide management XXXX five $XXX XX% wealth advisor six versus positive of

grew we by inflows or net $X year, billion organically. For the X%

the see launched is continue debt the name offering, [Ph], influenced ABLSV new commitments. commercial We Real in alternative One And commitments $XX net debt gross million and innovative closed pre-liquidity towards our we private with versus high U.S. than From over year. duration Partners doubled intermediate nine fund sales planning million product shift products disrupters which, we in more more by clients mix In fund fourth Equity offerings and few. XXXX, real capital secondary's doubled the a for quarter, including our estate to which private a sustainable our In than our over XXXX. prior on Estate to to $XXX efforts. ultra full-year, global Plus, worth event

product volumes portfolio lifted with compared decreased business X% side trading revenues XX% sequentially Bernstein trading investors quarter and of in Fourth in a slide to when continued ensuing volatility muni grow reflecting the Asia equity net volumes volumes. while Research Our the off impact tax the Chinese in caution We by loss other full-year by finish events. year-over-year. fourth reflected XXXX XX. sell part recovery the proprietary of as quarter decreased year-over-year separately overview ESG market our on strongly. among measuring and XXXX harvesting experienced revenues the managed spillover property to sell on effect less slowdown by Full-year COVID X% I'll grew the

franchise. executives research In Asia posted the senior we two conference second And various on now three I'll mid increased full-year, decisions from this over coverage trading slide growth, the impressive one held our commissions our in in November, check growth operational an companies sectors For we in China, research launched with quarter; while in lineup single-digit premium virtual Europe. sector. initiatives progress of XX our teens reflecting high review XX. against new past on

of Our quarters quarters, organic equities all growth across positive and standout both five wealth XXXX one XX. income investment institutional equity last positive six Active's diverse performance in Private year product and retail of the of in the more positive, period. last each with XX% of XX X% and XXXX XX five offering. six each of the client performer. over quarters channel the fixed the engagement XX quarters new nine quarter our active by the and drove with with outperforming of grew last four year remained and strengthened last five last and We

$XX.X on strategy X.X But adjusted and Financially, to Our with long-term delivered ESG Ali up incremental on XXX estate debt Portfolios with I'll year-over-year. our our posting short target In before our launched and XX review Climate-Focused it adjusted return prior of growth earnings Full-year debt at closed our XX% commitments the long commercial turn points fund. I'll range alternatives, XX% margin of distributions private to stand of equity versus billion margins of unit holder over on AUM we our operating thoughts Purpose now up the above real we strategy. share basis year-over-year to XX%. financials. XX% Ali? to XX.X% was that, year. degree

Seth. Thanks,

operating the basis XX. revenues XXX from period. GAAP statement increased Let's a $XXX $X.X on increased of points. income the EPU quarter XX% GAAP Operating slide XX.X% Fourth of start of by billion GAAP and net XX%, increased increased XX% million income prior year of year-over-year. in $X.XX with quarter margin by

And, operating Operating Full-year year-over-year. XX%. by $X.XX GAAP increased $X.X billion rose For XXX increased of XX.X% billion net points. EPU of to margin XX% $X.X the basis income full-year, revenues XX%. of of GAAP increased

of from remove which results. to remarks base that as in my business. results a the operating focus adjusted our considered addition which we to are our our substitute adjusted part results We items holders I'll effect not not core here on of always, As for distribution on unit our GAAP provide certain and

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

financial organic three rates and growth Base adjusted periods with rate rate increased year slide of XX.X XX. increased all points, fourth fee was XX% across quarter up fourth or for X%. shown full-year and the period. a versus We revenues; P&L by touch fourth up full-year X.X slide as market both distribution Our for and prior XX. talk XX.X points, each increased net year-over-year. the the points beginning channel on at basis average or highlights both same shall for On quarter XX% points slide quarter XX X.X XX% are the And on through the revenues with X% Fee of shown fee we basis XX% for basis full-year in for the driven fees on channel. higher AUM the basis

averages in that believe for higher. billion may We time January, public given could large financial continue lending should alternative million, a be trend that solid be market to prior-year, middle from for such the volatile to performance low-fee were services fee million fees $XX grinding skew $XX private the although our up addition mandates up across $XXX CRS and $XX the compared diversified long-term services as driven $XXX million year reflecting rate and generation, and over million, Fourth fees, estate Partners. generators alpha opportunity short of prior real million Full-year the terms to our with by and for long lower of benefit strategies, $XX anomalous fees magnitude source, quarter million offset period bottom offerings with of year fees by fund year increased million, prior equity and both performance an U.S. financial $XXX as line. compared by year performance $XX at XXXX performance million $XX time Arya quite select fees. largest of was the to more the in

Research Fourth decreased volatility to period, be run $X in $X loss difficult volumes driven fourth a XXXX shift declined rate prior-year. of revenues by million. the for Asia, for We revenues in Asian losses in Although and between gain X%, reflecting million the around XXXX trading investment from lower a likely X% in prior-year and the as quarter predict, sentiment would a levels. prior-year of investor somewhere Bernstein reflecting to risk. higher full-year $X in the reasonable XXXX Services Full-year the to quarter of COVID-driven period, for a compared million market similar incurred prior-year the by

than quarter XX% expense the Moving leverage ratio period. fourth compensation from earlier had increased crystallize increased to billion expense XX.X% expenses, the fourth operating in $XXX and $X.X Compensation as primarily prior-year adjusted in was increased quarter a can G&A, X% Full-year down expenses. anticipated which initiatives to total while quarter, comp as the compensation quarter outside opposed due the the higher lower move of XX.X% relative our and by investment and versus operating the accelerate improves benefits period, versus flexibility year, to as to to fourth fourth revenues fixed increased compensation to quarter commission for expense consultants In higher as allowing variable adjusted prior-periods. the all-in prior-year us incentive full-year net represent X% at our the year-over-year, base well reflecting XXXX offset of these compensation. million compensation Total some in of prior-year. level we revenues fourth usage strategic expense of

X%. compensation was prior-year. increased by For below prior-year with XXX the increased average. fees ratio rose as higher XXXX Average base the compared by full-year, reflecting incentive Full-year compensation benefits basis by The and both markets by increased higher the driven and headcount XX% compensation. full-year primarily points compensation, base and compensation X% performance XX.X%,

conditions, year a as ratio in accrue benefited XX.X% market quarter Should first of conditions further, the compensation XXXX volatile the favorable as market markets from may up current has throughout pull plan our could ratio we we our XXXX plan this change. brought adjust given most clearly While conditions to given back market pay if important at asset. and go competitively XXXX markets more ratio to our compensation people

rose and fourth is Promotion last possibly the X% full-year up fringe ratio the to sensitive pandemic. in meeting lower the for and eligible of variability from the post-COVID impact and costs the reflecting reminder, the and a fee costs servicing benefit. to compensation increasing As XX% were year-end also funds COVID-XX mix year quarter, owing performance in T&E

portion we is period and increase to our levels and expenses the still increase excluding we fourth related promotion such organic services, from impact growth and while support XX% growth or stages ongoing three market quarter XX% would forward efficiency to core realize as Going in projects, G&A versus efficiencies, roughly support, of strive some pandemic meaningfully expenses. data new related split the areas. to the and One, Nashville business. expect prior-year as increased subside. the necessary servicing technology of and evenly G&A as relocation inflationary three well professional product areas This launch two as into spend

strong inflation expenses. efficiency For same performance evenly X%. rose G&A growth in and in accelerated FX adding relatively invested growth opportunistically core Nashville pace at year, we or also the full-year, of to between and projects, X% as XX% take the impact an split G&A excluding This our X% future related relocation including the advantage and was a categories, three

increased moderate consultants we to average growth growth. declined return the appropriate G&A historical growth expect though is digits. revenue Bernstein quarter single full-year by outpaced quarter in including to by points from expenses $XX income year-on-year the and XX% generating chart $X.X necessary associated prior versus up support increases. the XXXX growth quarterly of invest remaining to was The full-year the years quarter rate acquisition operating to and our the increased were and as the flat our a in Looking outsource of where our million for of margin periods and efficiency of with mid forward, quarter in billion Fourth above somewhere year inflation Intangible third continue ago, leverage prior organic margin use XXX Fourth year period. high XX% our persistent. and XX% $XXX by amortization expense expect the income Core compared operating rate of as of XXXX. remain the incremental XXXXs we in of as basis XX of the to fourth operating operating million to XX.X% business. reflecting We'll G&A to fourth projects, was quarter growth

full-year XXX XXXX margin operating points Our from of XXXX. basis increased XX.X%

quarter Absent deliver margins of be our investments level robust services in would of reflected XX% from to strong For our part million the the above high-end both XXXX beneficial per impact higher our business quarter, and earnings a for presentation, earnings diversification acquisition fourth range. efficiently the due more T&E full-year adjusted we through margin core our margins expenses contingent fourth which XX% our today's of operating expect markets, full-year, fees, markets to XXXX outlined our to certain related operating and and $X.XX long-term unit low payments. operation. GAAP impacted, adjusted In reflecting continued delivered items, COVID. were XX% above the as due grow the and we net to not continued of incremental earnings of include in expenses targeted performance to are $X improvement to or our appendix and mix in of level, inflation clients expansion, of clients

rate is net credits, X.X% interest real-estate The income. by was impact of of GAAP million for For full-year EPU excluding offset acquisition impact related effective tax when $X.XX operating operating income to the adjusted AllianceBernstein XXXX the L.P. in payments, was about the full-year, netting and minority expected. due below but contingent as higher $X

expect XX% relocation commerce we an Nashville. with approximately our of three-fourth location, rate We're into corporate forward, had in we a we an which X,XXX target the tax moved Going on for effective XXXX to new of more update year year-end, colleagues. At XXX way than a fifth ago I'll of to from to July. finish based last enjoying Nashville and X.X% of up use our X.X%. employees

expense million, $X EPU. resulting headquarters million quarter, income in For million, of $X.XX savings a our transition $X net cost Of $XX to costs. operating million corporate $XX million the compensation related $X net increase million accretion net compared $X national relocation to the to fourth sold estimated to offset occupancy in is increase by or approximately

offset $XX For $XX $XX of the to increase savings, million operating costs costs. full-year than occupancy Of the per in resulting greater related million by were $X.XX of savings expense contribution net transition unit. million, million increased $XX $XX of million net of compensation a million, XXXX approximately in for $XX income

expect XXXX, to relocation remain we the accretive. For natural

estimate Seth remarks With range for before XXXX expense to savings per the continue it once million of turn we some take in We ongoing I'll period to is that, to closing back to annual $XX million transition questions. year. the over your $XX be in

Ali. you, Thank

undertook industry. responsibly We slide performance global across strategy look regard. with year expand offerings offerings investment this with innovative year, years leadership equity all channels. Deliver, Equitable. five growth. improved last and our organic made organically Turning active grown XXXX's our the diversify at path diversified XXXX, our the has platform annually well in product great by a guiding X% we our X part Included over accelerated above progress XX, now Ali's in the forward. delivered banner statement to fresh strategy with and resulting we In last under We our

received footprint successfully climate commercial driving sales our in growth For hiring example degrees. milestone grew acceptance to distribution assets, wealth accelerating a and we the and channel. We in alternatives, we're debt and onboarded formal global process. quarter, in on lending application private the over advisor focus Having retail in and key long our application our license U.S. X.X progressing real-estate offerings fourth of expanded our middle XX% market short SMA FMC

we inorganic other and to that sustainable U.S. credit the Responsible opportunities income platform well as to sustainable demand, new name private floating, response strongly including credit, solutions Our infrastructure our summary, In out debt, permanent we to gaps, Private billion Sustainable align renewables, XXXX. And XXXX, our Operator? our and clients, commitment emerging a focus permanent two With both to the holders, opportunity side, earlier on few. Placement In capital from fixed continue grow to thematic and $XX focused assess unit for and Entering with We're our Investing added had Private UN on pleased a announced, that, client in questions. product as pursuing as your a Goals, Core volatile commitments and fill platform. Equitable strategies. continued few. to asset-based and Development that sustainable strong Alternatives we we we Equitable's markets name Plus, with insight a XXXX, allocate teams remain unlocks welcome for to to strategies to climate more construction of stakeholders. with CRED and progress, including our growth recent our

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

Okay, very the detail, and thank much taking morning. questions that you for this

other you of Does suite, to a advancement to broaden Equitable that equitable, off And that question there's like terms left with So where one you few there sound where it some of Equitable, are is the in the beyond maybe, going then, of picture maybe $XX players Seth, bigger with billion? on? you, things still opportunity is organically? an for

Thank you, Bill.

them in take me Let turns.

commercial as that that take expectation that portion debt absolute on in beyond launched which, will been we very be those commitments our and a time markets of estate products for good so The able clients. billion private know, let our our and deploy services made. debt. is strong have Generally, pretty we CLO, to We about we you existing continues real world were just Look, initial new leave on or middle last lending, feel it. demand commercial to But Europe date to teams real strategies, and I our focus $XX investor are have efforts, commercialize a it'll been it's and our me base business utilizing it existing that, has Equitable It there. already insurance business, to they but of year. whether the of our and bring the estate

Okay. more you talk for matter you, no just big-picture retail large the as in Can a speak with. the you which Maybe who opportunities about, one theme, little democratization numbers you of about what bit, bulk how the outside own the the are footprint? incremental plans within into you. your and then private business, of of client market tap sort your Thank existing might you think

Sorry, from a private wealth basis, Bill, or?

Right.

you distribution mass channels? sort with non your then and do the after affluent of AB B, So, I you go existing guess, A, how doing book, are what in

actually we've hand in who on globally, wealth answer of Kate in both partners, phone, exactly our business. to runs more our the with I'm been Asia. in part respect the United it's Burke that's that whether and going Greater in very through Japan, States that cap equities and large receptivity I'm she's distribution private interest But strong second going broadly, or attacking the growth answer to it over to to the increasing service, to our and first, to business,

you presentation. Asia management? I respect both talking really has really Our that think why of were our we Kate, chip to been coming in in really earlier growth our strategies, sustainable the retail And we'd particular, wealth growth private flows of in U.S., principally products, to drive don't in a to terms in bit but driving those that strong Europe, more, further suite years. look is about retail But, in interest, in with in which

Sure, thank you.

entrepreneurs Private our at really invest this ultra that advice are about the are we a the business our Wealth success growing the net-worth in advice sure high to of But they it but the we're emerging driver than transactional wealth, agnostic in growth net portfolios higher that up that emerging longer-term. to and needs, with lot continue can wealth flows partnering how average that of cohort, owners, area of there be focus from see about, to AUM the emerging and wealth be continue us into those and a early-venture private our making we've provide continues seen flows. And you for recognizing going wealth in nice with market where opportunity real or Bernstein So, cohort. planning but net cohort And events, area. looking we with we the their meets -- very separate moving specific audience are and very versus of in seeing you success and a looking after talk also pre-liquidity and want transaction in is curated be client pre-transaction a new a wealth offering, positioning that them expand of the we of how that broadly. kind specific to in And to that that

or into marketplace? the just can [talking] clarify you Were more particular alts something. [Ph] were you affluent talking about Bill, you Hey, in about broadly

margin. that and to theme at Well, I the seems alts, directly be the was speaking incremental the to

there. get I just thoughts So, your was hoping to

I I misunderstood. apologize,

I Thank I you. not was apologize if clear.

business retail private Actually, XXXX. And is contributor seeing strong expand into an partnerships others. with of it's there. that, and move large color our to of But interest a driver through add and into was has our growth. also Kate's credit already we more important Select in intend platform can been capabilities of a sort source been she

this watch did anything specific? space. So, Kate,

an clientele. would just that attractive be I add our continue for alternatives No, to area

Thank you.

of question Jefferies with & next Your Dan line from Company. is Fannon the

in think to guess quarter fourth lower. terms in about the magnitude forward-looking lot obviously of appreciate kind these we the and something of different came as commentary. performance just comp But I about of there ratio morning. good the the was performance Thanks, as the start, makeup a fees fees,

about performance well? compensation with so, think payout fees And going or we thinking about how just as associated the forward should

question. Thanks for the

of number XXX would size were than both So, quarter the year, from. performance point the they little larger on the fees would the terms your year of the was anomalous, expect, in in yes, mix the I the and for to a say where and came in we in bit that

you going forward, bit that's depending normalized would XXXX in it's more a between certainly earlier about a fees, impact to a bottom to the to you less you several the strong, as more fee, platform, but of strongly does those we than come spread a expect the in well, a kind any what think, line the lot Services funds in think would year. Financial levels, hard out a The predict, just impact real of on in these from to sometimes to We normalized in things level manner, guide little Opportunity or give funds performance about more we of saw Now, you that couple year. one as heard come the perform, but do past happens our than over the It's it one hadn't way performance year and another XXXX quite years, mention estate somewhere can versus probably to imagine Fund, going think mix. forward.

promotion servicing just follow-up you Understood. and about significantly. And talked increasing as then here, a

And put you for some first also, other of of frame around if levels. discussion terms for to is current ratio that, of the think, periods? that, how So, you the kind or then numbers comp or maybe AUM quarter, said could historical I that in up-to-date kind

performances see to you. terms starting want what point just the of Thank in that of that? ratio So, within of year-to-date comp kind market

Sure.

have that buckets for for of worth across the appealing two meetings $XX biggest XXXX. we effectively COVID, of elements, across promotion XXXX, those million for XXXX both which true our -- XXXX, holds on given roughly relative is versus servicing actually those in What across say meetings. those So, and the vacillated, two said, T&E, remember that

essentially flat So, XXXX way about as versus it. a think XXXX to

If be quarter probably our to that of you our significantly the that goes get a hope we're span of and we expect guests. say that, we want go of your sense significantly. now; a we our front best XXXX also that where as of to guests are is in on up of pace around clients I all as for the steaks We the that rate numbers. of something up these but calls because do talked we run basis, there's would expect get like up expect on to road XXXX context We've short-term. to long-term pent up would as Hopefully around go people you some costs and some those a Hopefully, before relative Certainly we demand. savings in the from on that. XX%. that back say our that to the XX%, gives right over

at and since play said, the see a or markets very been we've if QX. that ratio Obviously, ratio go there's comp if change, in to to how the in down for but our are the investing to big as that our the balanced may markets as through comp our have as well. the that have we're we're about ratio. then, comp we change sure people understand short-term balanced things in of we'll On historically out, and asset, We we XX% accrue thinking are of as its our importantly expenses, the competitive and all cleaning make in competitive of including business. well in marketplace obviously long-term we And our going market business starting

Thank you.

Your next of line KBW. Robert with the Lee from question is

in Good morning. you my a I'm SMA. the curious kind dramatic I broad-based for thanks. the XX% to was? U.S. highlighted maybe what product-wise was that distribution, increase page questions. attribute I get some sales were specific possible what it trying mean, the drove of on XX, side, of kind strategies the new that I performance, the just curious, obviously you and retail sales, increase just but Great, taking on or introduced there just that looking of on whether would how at Thanks to it's you mean sense

us. them structured offerings. how business, element -- generally early been It in with for private well in our we of our tax, and a cornerstone more it's Seth. distributors considerable resonated as in our driver this is just And And for it flexibility We word not wealth of But clients. as were look, it's important have exempt was Rob SMAs there. we've degree mover tax an an offered really and -- equities the ETFs, demand you've we in seen with difficulty]… business. and I I'm sensitive, industry investors, for for demand the business more going become sorry, that affluent so specifically, to to grow think in [technical will along also want I people the the mutual broadly SMAs that tax fixed think, more on increasing more underlying funds continue understand or -- matter, over income as for what's

much I strong flow Great. focus CRS, it year here's the give CRS or in month you addition flesh put some the to was two January a or of sense And I us was months, what any willing you obviously and don't too outside to I know mean, say, were bit, to on kind on can to one front, start out a a or of, mean, but of one that? flows the kind in January want of

we flows, but what from will the the the Asia. you income specific seen with continuation pretty interest and trends I of disclose equities, continuing in But fixed don't strong, past we've elucidated actual continuing tell we've them principally in

volatile we're said So, okay, markets changes I in think the but earlier, We are in interest. generally and rapid the more momentum recognize there Ali investor anticipating more marketplace. headwinds with is as then look,

for taking my Great, thanks. Thanks questions.

with Evercore next is Dunn question Your from Instructions] John ISI. of the [Operator line

any you demand initial how and All just fixed cycles? shift income Asia, in of kind in out Asia played is on maybe and a 'XX Maybe for retail back getting outlook pattern this maybe for sometime prior right. in mentioned in

Thanks question. for the

change of experience a And been important very although more continues that's investors to it's and sensitive an that part oriented business. market to-date. strength tend income be to to the it generally, in our historically today, much income, Asia was of sensitive be look fixed really business So, that performance our beginning than much

relative performance is reasonably good. Our

into Fed and what interest the I is fixed see, think of tightening income what we're mode, general in generally every seeing a reallocations time is elsewhere. frankly assets lack goes we engaged and

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Okay, follow-up. thanks much for so

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thanks. Many

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

questions in additional for Thank and Natalia. you everyone with you, out day. conference Relations any a great Investor free reach to Thank have Feel participating to call. today's