AllianceBernstein reported $784.5 billion in total assets under management for the first quarter ended March 31, up 3.4% from $758.7 billion from the same period a year ago, but down 1% from $792.2 billion the previous quarter. At the same time institutional inflows rebounded during the first quarter.
During the first quarter, net inflows totaled $2.4 billion compared with $4.8 billion of net outflows the previous quarter. The retail channel led the way with $900 million in net inflows followed by private wealth with $800 million and institutional with $700 million. It was a marked turnaround for the institutional channel that saw $6.2 billion in net outflows in the fourth quarter of 2024.
"Against a tough market backdrop that intensified into the second quarter, all three of our global distribution channels grew organically,” said Seth P. Bernstein, president and CEO of AllianceBernstein, in an earnings release.
Bernstein added, “Markets are in a state of heightened uncertainty, as investors display risk aversion amidst slower growth outlook, higher interest rates, and a fluid geopolitical landscape.”
Across segments, the investment manager saw $4.2 billion in net inflows in alternatives/multi-assets followed by $2.4 billion in inflows for fixed income tax-exempt and $200 million for equity passive. Equity active saw $2.5 billion in net outflows followed by fixed income taxable with $1.4 billion in outflows and fixed income passive with $500 million in outflows.
Overall, actively managed strategies saw $2.7 billion in net flows during the first quarter while passive saw $300 million in outflows.
Institutional and retail assets under management both stand at $324.1 billion as of March 31. Private wealth accounts for $136.3 billion in assets under management, according to the earnings release.
Bernstein said that private alternatives benefited AB during the first quarter, and that the firm is focused on expanding its private market platform by deepening existing partnerships and establishing new ones. Executives noted during the earnings call that they expect insurance to be a strong contributor to alternative and private credit growth.
“We're excited with the momentum we're seeing as we extend our private credit franchise to the institutional channel with customized solutions,” Bernstein said on the call.
Private markets assets under management reached over $75 billion at the end of the first quarter up from $62.7 billion a year earlier. AB is targeting $90 billion to $100 billion for this segment, according to its first quarter review document.
Amid the current uncertainty fueled by President Trump’s tariffs, Bernstein noted that with credit accounting for nearly half of AB’s assets under management, “we believe we're less vulnerable to significant equity market downturns.” And in recent days, the firm has noted that retail flows have “certainly stabilized” at a better level.
“I think risk aversion will probably remain present for a while,” Bernstein said. “And so I think once the stability begins to reassert itself, I think that there's pretty attractive opportunities out there for people who don't want to venture back into equities so quickly, but that will take some more time to figure out.”
