AllianceBernstein's AUM falls 5.5% in Q1

AllianceBernstein Holding reported assets under management of $735.4 billion as of March 31, down 5.5% from three months earlier, but up 5.5% from 12 months earlier.

Net inflows totaled $11.4 billion in the first quarter, compared with net inflows of $7.4 billion in the fourth quarter, and net inflows of $5.2 billion in the first quarter of 2021, AB said in an earnings release Friday.

Institutional net inflows totaled $10.2 billion in the quarter, compared with net inflows of $400 million in the previous quarter and net inflows of $800 million in the year-earlier quarter.

Seth P. Bernstein, president and CEO of AllianceBernstein, said in an earnings call Friday that "institutional sales of $14.3 billion, contributed to net inflows of $10.2 billion, led by the $9.6 billion custom target-date mandate."

AB noted in the earnings release that the target-date mandate referred to "the funding of a $9.6 billion retirement solution mandate in January 2022."

In a report accompanying the earnings release, AB said the $10.2 billion in institutional net inflows was a "record" for the firm and that the gross institutional sales of $14.3 billion in the quarter surged by 191% year-over-year due to the custom target-date mandate. In addition, the institutional side saw "moderate redemptions" of $4.1 billion in the quarter and a "low 4.8% annualized redemption rate," the report noted.

In the earnings call, Mr. Bernstein added, "Equities continues to attract institutional interest and that's been an important growth area for us."

Retail had net outflows totaling $1 billion in the first quarter, compared with net inflows of $6.3 billion in the fourth quarter and net inflows of $2.7 billion in the first quarter of 2021.

Retail gross sales of $20.6 billion in the first quarter decreased from a record $27.6 billion in the fourth quarter, AB added in the release.

Private wealth recorded net inflows of $2.2 billion in the first quarter, compared with net inflows of $700 million in the previous quarter and net inflows of $1.7 billion in the year-earlier quarter.

AB reported GAAP net revenues of $1.1 billion in the first quarter, down 12.6% from the fourth quarter, but up 9.8% from the first quarter of 2021.

AB attributed the quarterly decrease in revenue to "lower performance-based fees, higher investment losses, lower investment advisory base fees and lower distribution revenues, partially offset by higher (subsidiary) Bernstein Research revenues," the release said.

AB reported GAAP diluted net income of 87 cents per unit in the first quarter, vs. $1.27 per unit in the fourth quarter and 81 cents per unit in the year-ago first quarter.