AllianceBernstein on Thursday reported adjusted diluted net earnings per share of 24 cents for the quarter ended June 30, in line with the consensus estimate of analysts.
The company also reported $2.8 billion in net outflows, which Peter S. Kraus, AllianceBernstein’s chairman and CEO, speaking on an earnings conference call, noted was the firm’s best showing since the $1.5 billion in outflows AllianceBernstein reported for the first quarter of 2008.
For the quarter, AllianceBernstein’s retail offerings enjoyed net inflows of $3.5 billion, but those gains were more than offset by net institutional outflows of $3.7 billion and net private client outflows of $2.6 billion.
The latest outflows were down from the $12.1 billion reported for the prior quarter and $19.5 billion for the year-earlier quarter.
The company reported $407.3 billion in assets under management as of June 30, down 2.8% from the prior quarter and down 12% from the year before.
The $11.8 billion drop in AUM from the prior quarter was due to $9 billion in market-related declines on top of the net outflows.
On the earnings call, Mr. Kraus said continued strong performance for AllianceBernstein’s fixed-income offerings helped soften the fallout from a volatile quarter that prompted risk-shy investors to take money away from the company’s large-cap equity products.
For the quarter, the company’s fixed-income strategies pulled in net inflows of $4 billion, while its value and growth equity strategies saw combined outflows of $7.4 billion. The company’s “other” products, including asset allocation offerings, garnered net inflows of $600 million.
Mr. Kraus said the company’s pipeline of unfunded wins almost doubled to $11.3 billion as of June 30 from $6.6 billion the prior quarter, with fixed income accounting for roughly two-thirds of that.
The CEO suggested there are reasons for optimism, noting the number of RFPs AllianceBernstein is seeing is up roughly 40% from the year before.
The company’s adjusted diluted net income per share for the latest quarter came to 24 cents, down 17% from the prior quarter and off 31% from the year before.
Net revenue on an adjusted basis, meanwhile, came to $546 million, down 3% from the prior quarter and down 14% from the year before. On a GAAP basis, net revenue came to $642 million, down 6% from the prior quarter and down 12% from the year before.
