Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q2 2025 Earnings Presentation
30 slides from Alliancebernstein Holding L.p's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Review
Second Quarter 2025 Review July 24, 2025 Seth P. Bernstein, President & Chief Executive Officer Tom Simeone, Chief Financial Officer
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements Certain statements provided by management in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other fact
Slide 3: Key Business Highlights Second Quarter 2025
Key Business Highlights Second Quarter 2025 Record Quarter-End AUM of $829bn AUM 17% in Private Wealth and 83% Asset Management 1 • EQH GA assets account for nearly 10% of our $685 billion asset management business • $21.9 billion in pipeline AUM, reflecting strong client engagement across insurance
Slide 4: Permanent Capital Flywheel: Strengthening our Partnership with EQH
Permanent Capital Flywheel: Strengthening our Partnership with EQH EQH’s long-duration capital matched to AB’s differentiated capabilities unlocks combined opportunity Growth Avenues Target for AB Expand private assets 1 Permanent and grow EQH GA Capital Unlock Private Opportunity Scale insurance so
Slide 5: Key Financial Highlights Second Quarter 2025
Key Financial Highlights Second Quarter 2025 2Q25 2Q24 1Q25 AUM and Flows End of Period AUM $829.1 $769.5 $784.5 (USD Billions, Except Fee Rate) Average AUM $799.5 $755.5 $797.5 Equitable ("EQH") AUM $137.8 $127.1 $132.1 Private Markets AUM* $77.1 $64.1 $75.3 Gross Sales $27.9 $31.9 $36.1 Net Flows
Slide 6: Percentage of Assets Outperforming at Quarter-End
Percentage of Assets Outperforming at Quarter-End Fixed Income One-Year Three-Year Five-Year 89 92 87 81 75 64 68 65 61 63 57 57 60 59 57 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Equities One-Year Three-Year Five-Year 68 65 64 67 65 55 52 57 45 47 48
Slide 7: Retail Highlights
Retail Highlights Macro Turbulence Halts Seven-Quarter Inflowing Streak Management Fees Trending In-Line With AUM Mix Shift USD Billions USD millions Gross Sales Gross Redemptions Net Flows Base Fees Performance Fees $26.6 $26.4 $25.7 $23.2 $19.4 $1 $0 $1 $6 $14 $5.4 $2.8 $1.1 $0.9 $365 $376 $363 $3
Slide 8: Institutional Highlights
Institutional Highlights Robust Channel Demand for Liquid & Private Credit Client Connectivity Drives Pipeline Growth USD Billions Gross Sales Gross Redemptions Net Flows $ Billions Pipeline AUM (EoP) Fee Rate (Bps) $21.9 $4.2 $4.6 $3.7 $3.3 $20 80 $2.0 $0.7 $15 60 $13.5 $9.8 $10.7 $10.1 ($1.5) 49bp
Slide 9: Private Wealth Highlights
Private Wealth Highlights Net New Asset Growth Despite Seasonal Flows Slowdown Diversified Revenue Streams, Uncaptured in Base Fee Rate USD Billions USD millions Gross Sales Gross Redemptions Net Flows NNA Base Fees Performance Fees Net Interest Margin $5.4 $5.8 $4.7 $5.2 $4.8 $17 $2.2 $1.1 $1.9 $1.
Slide 10: Select Adjusted Financials and Ratios
Select Adjusted Financials and Ratios Revenues 2Q25 2Q24 Percent ∆ 1Q25 Percent ∆ Base Fees* $772 $742 4% $782 (1)% Performance Fees: Private Markets† 22 25 (10)% 20 10% Public Markets 8 17 (53)% 19 (58)% Investment Gains (Losses) 8 4 104% (11) n.m. Dividend & Interest Revenue 31 41 (24)% 32 (2)% Ot
Slide 11: Base Fee Rate Relatively Stable Through Recent Cycle
Base Fee Rate Relatively Stable Through Recent Cycle Firmwide Base Fee Rate—Last Five Years Basis points, net of distribution costs Long-Term Supportive Trends Idiosyncratic to AB: • Institutional deployments into alts 42 • Organic growth in offshore equity MFs, offshore fixed income • Organic, NNA
Slide 12: Large Portion of Recurring Performance-Related Fees, Driven by Privates
Large Portion of Recurring Performance-Related Fees, Driven by Privates Annual Performance Fees—Private and Public Markets USD Millions • We now expect total FY25 performance fees of $110–$130 $227 million, up from $90–105 million across private and public strategies FY25 total performance fees $110
Slide 13: On Track for 33% FY25 Margins Assuming Flat Markets
On Track for 33% FY25 Margins Assuming Flat Markets Adjusted Operating Margin Path and FY25 Outlook 4Q24 Avg YTD Avg AUM Assumes average FY25 AUM $801.0bn $800.5bn AUM levels equal to 4Q24 +70bps 33% 33% YTD Margin Forecast FY25 Expansion Adjusted Margin As of 6/30/2025 Source: AB 2Q25 Earnings Revi
Slide 14: AB's Unique Value Proposition
AB’s Unique Value Proposition Integrated asset and wealth manager with differentiated capabilities, partnerships and structure Differentiated Distribution Platform, with Proprietary-Plus Private Wealth Channel 1 Advantageous competitive positions in growing markets: APAC, US HNW, Global Insurance Di
Slide 15: Appendix
Appendix 2Q25 Earnings Review 15
Slide 16: Retail Mutual Funds Relative Performance vs. Morningstar Averages
Retail Mutual Funds Relative Performance vs. Morningstar Averages 1 Year 3 Year 5 Year 10 Year Relative Relative Relative Relative Retail Service (%) Percentile (%) Percentile (%) Percentile (%) Percentile Equity Large Cap Growth (4.4) 75 (1.5) 68 0.3 53 1.4 25 Concentrated Growth (7.1) 90 (10.4) 98
Slide 17: Retail Mutual Funds Relative Performance vs. Morningstar Averages
Retail Mutual Funds Relative Performance vs. Morningstar Averages 1 Year 3 Year 5 Year 10 Year Service Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Fixed Income American Income 1.1 28 0.5 37 (0.3) 58 0.3 37 European Income 0.8 28 1.5 26 0.1 48 1.0 1
Slide 18: Institutional Composite Relative Performance vs. Benchmarks
Institutional Composite Relative Performance vs. Benchmarks Service 1 Year 3 Year 5 Year 10 Year Equity US Small Cap Growth 0.5 (0.2) (1.4) 3.3 Global Core (0.2) (1.7) (1.8) 0.1 International Strategic Core 6.8 1.7 0.6 2.2 Sustainable Global Thematic (8.4) (5.6) (3.8) 0.5 US Small Cap Value 0.1 (0.5
Slide 19: Assets Under Management: 2Q25
Assets Under Management: 2Q25 (US $ Billions) June 30, 2025 March 31, 2025 Institutions Private Wealth Retail Total Total Equity Actively Managed $50 $57 $166 $273 $249 Passive (1) 25 7 39 71 66 Total Equity 75 64 205 344 315 Fixed Income Taxable 121 20 73 214 212 Tax-Exempt 2 30 48 80 78 Passive (1
Slide 20: AUM Roll-Forward by Distribution Channel
Three Months Ended 6/30/25: AUM Roll-Forward by Distribution Channel In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Performance Change of Period Institutions US $162.9 $3.5 $(0.7) $— $2.8 $5.4 $8.2 $17
Slide 21: AUM Roll-Forward by Investment Service
Three Months Ended 6/30/25: AUM Roll-Forward by Investment Service In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Performance Change of Period Equity Active US $173.3 $6.4 $(8.5) $(1.2) $(3.3) $22.0 $1
Slide 22: Active vs. Passive Net Flows
Three Months Ended 6/30/25: Active vs. Passive Net Flows Actively Passively Managed Managed (1) Total Equity $(6.0) $(1.9) $(7.9) Fixed Income (0.3) (0.1) (0.4) Alternatives/MAS (2) 1.5 0.1 1.6 Total $(4.8) $(1.9) $(6.7) (1) Includes index and enhanced index services. (2) Includes certain multi-asse
Slide 23: Assets Under Management By Region
Assets Under Management By Region Institutional Geographic Breakdown Retail Geographic Breakdown Japan Other Other APAC ex 3% 3% 2% Japan 6% EMEA 9% EMEA Japan 11% 13% APAC ex Japan US US 17% 59% 77% $340.0B $344.7B As of June 30, 2025 By Client Domicile Percentages may not add up to 100% due to rou
Slide 24: Second Quarter 2025 GAAP Income Statement
Second Quarter 2025 GAAP Income Statement Income Statement (in US $ Millions) 2Q25 2Q24 %∆ 1Q25 %∆ Base Fees $805 $774 4% $818 (2)% Performance Fees 39 43 (11) % 37 4% Distribution Revenues 198 173 15 % 199 —% Dividends & Interest 36 44 (18)% 34 5% Investment (Losses) (8) (24) (67)% (20) (62)% Other
Slide 25: Second Quarter 2025 GAAP Income Statement
Second Quarter 2025 GAAP Income Statement In US $ Millions (except EPU) 2Q25 2Q24 %∆ 1Q25 %∆ Net Revenues $1,089 $1,028 6% $1,080 1% Operating Expenses 867 829 5% 844 3% Operating Income 222 199 11 % 236 (6)% Net Income Attributable to AB Unitholders 210 310 (32)% 221 (5)% AB Holding GAAP Net Income
Slide 26: Second Quarter 2025 AB Holding Financial Results
Second Quarter 2025 AB Holding Financial Results In US $ Millions (excluding per Unit amounts) 2Q25 2Q24 %∆ 1Q25 %∆ AB Net Income Attributable to AllianceBernstein $210 $310 (32)% $221 (5)% Weighted Average Equity Ownership Interest 37.5 % 39.6 % 37.5 % AB Holding Equity in Net Income Attributable t
Slide 27: Second Quarter 2025 Adjusted Advisory Fees
Second Quarter 2025 Adjusted Advisory Fees 2Q25 2Q24 %∆ 1Q25 %∆ Ending AUM ($ Billions) $829 $770 8% $785 6% Average AUM ($ Billions) $800 $756 6% $798 —% By Fee Type ($ Millions): Adjusted Base Fees $772 $742 4% $782 (1)% Adjusted Performance Fees 30 42 (28)% 39 (23)% Total $802 $784 2% $821 (2)% A
Slide 28: Second Quarter 2025 GAAP to Non-GAAP Reconciliation
Second Quarter 2025 GAAP to Non-GAAP Reconciliation In US $ Thousands Adjustments Distribution Pass Deferred Pension NCI/ Acquisition- Equity AB Funds Related Through Comp. Obligation Consol Related Method Reimburs Interest GAAP Payments Adjustments Inv. Settlement VIE Expenses Investment Expense Ex
Slide 29: AB Adjusted Financial Results Reconciliation
AB Adjusted Financial Results Reconciliation Notes to Consolidated Statements of Income and Supplemental Information (Unaudited) A. We exclude all of the company’s distribution revenues, which are recorded as a separate line item on the consolidated statement of income, as well as a portion of inves
Slide 30: Trademark notice
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P. ©2025 AllianceBernstein L.P.
AllianceBernstein Holding L.P. Units — Q2 2025 Earnings Presentation on 6ix