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AllianceBernstein Reports Second Quarter Results for 2025

Highlights from the Quarter:
AllianceBernstein L.P. (NYSE: AB) and its holding company, AllianceBernstein Holding L.P., announced their financial and operational results for the quarter ending June 30, 2025. The firm reported a GAAP net income of $0.64 per unit and an adjusted net income of $0.76 per unit, reflecting a 7% increase year-over-year. The firm also declared a cash distribution of $0.76 per unit set for August 14, 2025, demonstrating a continued commitment to returning value to unitholders.

Economic Landscape:
Seth Bernstein, the President and CEO, commented on the challenging landscape within which investors have had to navigate. Heightened geopolitical tensions, uncertainties in trade policies, and worries surrounding debt sustainability shaped market dynamics during the quarter. Despite these headwinds, there was a notable improvement in investor sentiment, particularly as risk assets began to yield positive returns, which contributed to a record increase in total assets under management (AUM) to $829 billion.

Performance Metrics:
As of June 30, 2025, AB's total AUM was $829.1 billion, which marks a significant growth of 7.7% from the previous year. Among these, private wealth constituted 17% of the total assets, while general account assets from EQH represented nearly 10% of the investment management balance. The firm experienced net outflows of $4.8 billion primarily concentrated in April, yet this trend reversed towards the end of the quarter as macroeconomic conditions stabilized, bringing an upswing in net flows to nearly $22 billion.

Challenges in Retail Demand:
The retail segment showed softening dynamics, ending a streak of seven consecutive quarters of capital inflows. Active equities saw net outflows of $3.7 billion, and taxable fixed income faced outflows of $2.4 billion due to international redemptions. However, US demand exhibited a more favorable trend with reinvestment into the company’s growing ETF offerings. Notably, retail alternatives and multi-asset strategies attracted over $300 million in inflows, largely driven by growing interests in the Asia-Pacific region.

Institutional Results:
Despite challenges, institutional active net flows were positive, with $1 billion each flowing into taxable fixed income and alternatives/multi-asset strategies. However, active equities saw outflows of $1.4 billion, alongside $1.8 billion in passive strategy exits. Nevertheless, the institutional pipeline reached an impressive $22 billion, underpinning the firm's ability to strengthen client relationships during uncertain times.
With markets rebounding, AllianceBernstein’s outlook for the second half of 2025 appears positive, albeit under a cautious investor sentiment. Bernstein reiterated the firm's commitment to helping clients navigate these evolving challenges, attributing much of its success to the hard work of global colleagues.

Looking Ahead:
As the firm plans its next phases of growth, analysts will undoubtedly focus on how AllianceBernstein adapts to the continual shifts within the financial landscape. The results of this quarter, coupled with the firm’s adaptive strategies, will position it for opportunities in the upcoming periods, maintaining its stronghold in the investment management sector. Investors should remain attuned to future developments as AllianceBernstein navigates this intricate environment.

For more information, investors can tune into the conference call set for July 24, 2025, or visit the company’s Investor Relations website for access to further financial disclosures and presentations.