Core Viewpoint - Investors in the Financial - Investment Management sector should consider AllianceBernstein (AB) and BlackRock (BLK) for potential value opportunities, with AB currently presenting a stronger case for investment [1]. Group 1: Zacks Rank and Earnings Outlook - AllianceBernstein has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while BlackRock holds a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3]. - The Zacks Rank system is designed to identify stocks with improving earnings outlooks, which is currently favorable for AB [2][3]. Group 2: Valuation Metrics - AB has a forward P/E ratio of 11.96, significantly lower than BLK's forward P/E of 23.77, indicating that AB may be undervalued relative to BLK [5]. - The PEG ratio for AB is 1.50, while BLK's PEG ratio is 2.16, further suggesting that AB offers better value considering expected earnings growth [5]. - AB's P/B ratio stands at 2.22 compared to BLK's 3.55, reinforcing the notion that AB is more attractively priced based on its book value [6]. - These metrics contribute to AB's Value grade of B, while BLK has a Value grade of F, indicating a significant difference in perceived value between the two companies [6].

Core Points - AllianceBernstein Holding L.P. has made its 2024 Schedule K-3 available for download, which contains items of international tax relevance for unitholders [1] - The Schedule K-3 is particularly relevant for a limited number of unitholders, including foreign unitholders and those computing a foreign tax credit [2] - Unitholders can obtain an electronic copy of the Schedule K-3 by contacting Tax Package Support [3] Company Overview - AllianceBernstein is a prominent global investment management firm that provides diversified investment services to institutional investors, individuals, and private wealth clients [4] - As of July 31, 2025, AllianceBernstein manages $829 billion in assets [4]

Core Insights - AllianceBernstein Holding L.P. (AB) reported assets under management (AUM) of $829 billion for July 2025, unchanged from June 2025, due to market gains being offset by net outflows, primarily from institutions [1][9] - The company experienced approximately $4 billion in institutional outflows linked to the completion of the EQH-RGA reinsurance transaction [1][9] AUM Performance Breakdown - Equity AUM increased nearly 1% to $347 billion, while Alternatives/Multi-Asset Solutions AUM rose 1.1% to $183 billion [2] - Fixed Income AUM decreased by 1.6% to $299 billion [2] - Institutional AUM fell nearly 1% to $337 billion, whereas Private Wealth AUM increased 1.4% to $146 billion, and Retail AUM saw a slight increase to $346 billion [3] Market Position and Growth Potential - AllianceBernstein's global reach and solid AUM balance are expected to support top-line growth despite rising operating costs and a challenging operating environment [3] - In the past six months, AB's shares gained 10.6%, outperforming the industry's growth of 1.7% [5] - AB currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [6] Peer Comparison - Franklin Resources, Inc. reported AUM of $1.62 trillion, slightly up from the previous month, while Invesco's AUM increased by 1.2% to $2,024.5 billion [10] - Invesco's AUM was positively impacted by favorable market returns, resulting in a $22 billion increase, although FX effects decreased AUM by $8.5 billion [11]

Group 1: Financial Sector Performance - Financial stocks have recorded significant gains in 2025, with the S&P 500 Financial Select Sector SPDR ETF rising 9.1% as of July, outperforming the broader market [1][10] - Major banking institutions have benefited from increased trading revenues, heightened M&A activity, and robust bonus pools, indicating sustained profitability across the sector [2] - Anticipation of a September rate cut by the Fed has fueled optimism, with financials showing resilience due to their scale and diversified revenue streams, making them appealing as a defensive cyclical play [3] Group 2: Interest Rate Impact - Interest rate shifts by the Fed are crucial for the financial sector; easing rates lower borrowing costs, stimulating lending growth, and boosting banks' net interest margins [4] - Higher interest rates can compress margins and limit debt-finance activity, but when rates are high, banks generally see increased profitability due to elevated lending rates [4] Group 3: Investment Opportunities - Financial stocks are popular investments, with many companies in the sector issuing dividends and being evaluated based on their financial health [5] - The current year presents a compelling investment case for financial stocks, combining strong performance, favorable macroeconomic conditions, and responsiveness to Fed policy [5] - Selected stocks such as AllianceBernstein (AB), Interactive Brokers (IBKR), and Janus Henderson (JHG) have improved earnings estimates and strong VGM Scores, indicating potential investment opportunities [6][7][8][9][10]

Core Insights - AllianceBernstein L.P. and AllianceBernstein Holding L.P. reported that preliminary assets under management remained stable at $829 billion at the end of July 2025, unchanged from June 2025, as market gains were offset by net outflows during the month [1][2] Summary by Category Assets Under Management - Total assets under management as of July 31, 2025, were $829 billion, with no change from June 30, 2025 [1][2] - Institutional net outflows were approximately $4.0 billion, primarily due to the completion of the EQH-RGA reinsurance transaction [1] - Excluding the impact of the transaction, institutional and retail net flows were slightly negative, while private wealth posted roughly flat net flows [1] Breakdown of Assets - Total equity assets amounted to $347 billion, with actively managed equity at $273 billion and passive equity at $74 billion [2] - Total fixed income assets were $299 billion, with taxable fixed income at $209 billion and tax-exempt fixed income at $80 billion [2] - Alternatives and multi-asset solutions accounted for $183 billion in assets [2]

Core Points - AB Science S.A. successfully completed a private placement raising a total gross amount of EUR 2.55 million from a limited number of investors [1][3][4] Use of Proceeds - The net proceeds from the private placement will be used to finance ongoing activities, particularly focusing on the clinical development of the AB8939 program [3] Private Placement Details - The private placement involved the issuance of 2,276,787 new ordinary shares, each with one share warrant attached, without preferential subscription rights [4][5] - The issue price of one ABSA is EUR 1.12, representing a 24.68% discount to the volume-weighted average price over the three trading days preceding the price setting [6][7] Share Capital Impact - Following the issuance, the company's total share capital will be EUR 704,695.95, consisting of 63,706,916 ordinary shares, which could increase to 65,983,703 shares if all warrants are exercised [11][12] Trading and Admission - The new shares are expected to be admitted to trading on Euronext Paris on August 7, 2025, and will be assimilated to existing shares [15] About AB Science - AB Science specializes in the research, development, and commercialization of protein kinase inhibitors, targeting diseases with high unmet medical needs [24]

Core Viewpoint - AB Science has received regulatory approval from several European countries to initiate the third stage of its Phase I/II study combining AB8939 with venetoclax for treating acute myeloid leukemia (AML), indicating potential advancements in treatment options for patients with relapsed/refractory AML [1][4]. Group 1: Study Details - The third stage of the study has been approved in France, Germany, Spain, and Greece, focusing on determining the maximum tolerated dose (MTD) of AB8939 [2]. - The first two stages of the Phase I study involved 28 and 13 patients, respectively, establishing the MTD of AB8939 at 21.3 mg/m² after both 3 and 14 consecutive days of treatment [3]. - The current stage will evaluate the MTD after 14 consecutive days of treatment with AB8939 in combination with venetoclax, a standard treatment for AML [3][6]. Group 2: Treatment Rationale - The combination of AB8939 and venetoclax is expected to have low hematologic toxicity, potentially making it less toxic than the current standard treatment of azacitidine plus venetoclax [5]. - Both compounds target different mechanisms in cancer cells, which may lead to additive or synergistic effects in efficacy [5][9]. - AB8939 destabilizes microtubules, preventing cancer cell division, while venetoclax inhibits BCL2, promoting apoptosis in cancer cells, thus addressing resistance mechanisms [7][13]. Group 3: Market Potential - The estimated market potential for AML treatments exceeds €2 billion annually, with significant addressable markets in the United States, Europe, and Asia-Pacific [11][12]. - The total incidence of AML in the United States, Europe, and Asia-Pacific is approximately 79,100 cases, with a significant portion being poor responders to standard therapies [12][15]. Group 4: Intellectual Property and Regulatory Status - AB8939 is protected by patents until 2026, with potential extensions and additional protections for specific uses in AML, extending to 2044 for certain chromosomal abnormalities [16][18]. - The drug has received orphan drug designation from both the EMA and FDA, granting it marketing exclusivity for 10 years in Europe and 7 years in the US [19].

Financial Data and Key Metrics Changes - The company reported record assets under management (AUM) of $829 billion, marking a post-financial crisis high [5][6] - Adjusted earnings for the second quarter were $0.76 per unit, a 7% increase year-over-year [38] - Net revenues reached $844 million, a 2% increase compared to the prior year, while base fees increased by 4% [39] - Total performance fees decreased by $12 million to $30 million, primarily due to lower public market performance fees [39] - The adjusted operating margin for the quarter was 32.3%, up 150 basis points year-over-year [48] Business Line Data and Key Metrics Changes - Private wealth represented 17% of AUM and 35% of base management fees [6] - Active strategies experienced net outflows of $4.8 billion, with active equity shedding $6 billion [7] - The private markets platform grew to $77 billion in fee-paying and net fee-eligible AUM, a 20% year-over-year increase [9] - Alternatives multi-asset inflows totaled $1.6 billion, driven by strong deployments into private placements and real estate debt [8] Market Data and Key Metrics Changes - The firm observed a negative trend in retail flows, with active equity experiencing significant outflows [27] - The taxable fixed income segment generated $2.4 billion in outflows, while tax-exempt fixed income saw $1.2 billion in inflows [8][29] - The company reported strong organic growth in its retail municipal platform, growing at an annualized rate of 14% [8] Company Strategy and Development Direction - The company aims to grow private markets AUM to $90 billion to $100 billion by 2027, leveraging partnerships with Equitable [12][13] - The focus remains on delivering consistent and profitable growth supported by scale gains and improved operational leverage [9] - The company is expanding its distribution coverage by forming new partnerships and extending its addressable market [10] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions and policy uncertainty impacted investor sentiment, but conditions improved as trade tensions eased [5] - The company expects to maintain a 33% operating margin in 2025, assuming flat markets [9][48] - Management expressed optimism about the potential for margin expansion over time as the business scales [10] Other Important Information - The company has invested significantly in operational resources to enhance client service and unlock incremental revenue opportunities [10] - The firm is focused on maintaining expense discipline while investing in growth to generate long-term value for unitholders [49] Q&A Session Summary Question: How is the company thinking about scaling its retirement income business with Pacific Life joining? - Management highlighted the importance of the insurance segment and the ongoing expansion of engagement in lifetime income solutions, noting an uptick in interest due to demographic trends [51][52] Question: Can you clarify the likelihood of further exchanges into AllianceBernstein holding units? - Management explained that the conversion from private to public units is driven by tax treatment and does not affect daily trading volume [55][56] Question: What is the company's stance on potential M&A opportunities? - Management indicated that they are exploring various opportunities, particularly in insurance sidecars and partnerships, while maintaining a cautious approach to capital intensity [59][61] Question: How should the market think about the incremental margin and trajectory into 2026? - Management confirmed expectations of maintaining a 33% margin for both halves of the year, with future guidance for 2026 to be provided later [71][72] Question: What are the drivers of demand for American Income and the outlook for improvement? - Management noted that demand for American Income is cyclical and has seen signs of stabilization, with positive flow activity in fixed income and retail [84][87]

Financial Data and Key Metrics Changes - The company reported record assets under management (AUM) of $829 billion, marking a post-financial crisis high [6][7] - Adjusted earnings per unit for the second quarter increased by 7% year-over-year to $0.76 [39] - Net revenues reached $844 million, a 2% increase compared to the prior year, while base fees saw a 4% increase [40][41] - Total performance fees decreased by $12 million to $30 million, primarily due to lower public market performance fees [40] Business Line Data and Key Metrics Changes - Private wealth represented 17% of total AUM and 35% of base management fees [7] - Active strategies experienced net outflows of $4.8 billion, with active equity shedding $6 billion [8][29] - The private markets platform grew to $77 billion in fee-paying and net fee-eligible AUM, a 20% year-over-year increase [11] - Alternatives multi-asset inflows totaled $1.6 billion, driven by strong deployments into various strategies [10] Market Data and Key Metrics Changes - The company observed a negative trend in retail flows, with active equity experiencing significant outflows [29] - The retail municipal bond platform grew organically at a 14% annualized rate, continuing to gain market share [9][32] - The U.S. equity market saw a rebound, with the S&P 500 rallying 10.6% in the second quarter [22] Company Strategy and Development Direction - The company aims to grow private markets AUM to $90 billion to $100 billion by 2027, leveraging partnerships with Equitable [14][15] - The focus remains on delivering consistent and profitable growth supported by scale gains and improved operational efficiency [11] - The company is expanding its distribution coverage by forming new partnerships and extending its addressable market [12] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions and policy uncertainty impacted investor sentiment, but conditions improved as trade tensions eased [6] - The company expects to maintain a 33% operating margin in 2025, with potential for further margin expansion over time [11][49] - Management expressed confidence in the resilience of their investment strategies despite market volatility [17][20] Other Important Information - The company has invested significantly in operational resources to enhance client service and unlock incremental revenue opportunities [12] - The effective tax rate for the second quarter was 6.7%, in line with full-year guidance [43] Q&A Session Summary Question: How is the company thinking about scaling its retirement income business with Pacific Life joining? - Management highlighted the importance of the insurance segment and the ongoing expansion of engagement in lifetime income solutions, noting that these products tend to be lower fee from an asset management perspective [52][55] Question: Can you clarify the likelihood of further exchanges into AllianceBernstein holding units? - Management explained that the conversion from public to private units is driven by tax treatment and does not affect daily trading volume [56][58] Question: What is the company's stance on potential M&A activity? - Management indicated that they are exploring opportunities, particularly in partnerships with key insured clients, while maintaining a cautious approach to avoid becoming capital-heavy [60][63] Question: How should investors think about the incremental margin and trajectory into 2026? - Management affirmed the expectation of maintaining a 33% margin for both halves of the year, with future guidance for 2026 to be provided later [72][73] Question: Can you discuss the drivers of demand for American Income and the outlook for the rest of the year? - Management noted that demand for American Income is cyclical and has seen signs of stabilization, with positive trends observed in July [87][90]

Financial Performance - Record quarter-end AUM of $829 billion, with 17% in Private Wealth and 83% in Asset Management[5] - 2Q25 adjusted base management fees were up +6% y/y & down -2% q/q, compared to channel avg AUM levels up +8% y/y & down -1% q/q[18] - The firm's blended base fee rate was 38.7 bps in 2Q25, down -2% q/q & y/y, reflecting mix shift[7] - Adjusted operating margin was 32.3% in 2Q25, compared to 30.8% in 2Q24 and 33.7% in 1Q25[10,31] - AB Holding adjusted diluted net income per unit was $0.76 in 2Q25, compared to $0.71 in 2Q24 and $0.80 in 1Q25[10,31] Flows and AUM Composition - Active outflows of $4.8 billion in 2Q25, skewed in April, with demand rebounding in June and pipeline building[5] - Retail posted its first outflowing quarter as overseas demand steps back from turbulent macro[18] - Institutional channel saw positive active net flows in 2Q, >$300 million, driven by taxable FI and alts; outflows concentrated in equities, ~60% passive[25] - Private alts fundraising ~$0.6 billion in 2Q, broad-based across franchises[30] - Equitable ("EQH") AUM reached $137.8 billion in 2Q25, compared to $127.1 billion in 2Q24 and $132.1 billion in 1Q25[10] - Private Markets AUM* reached $77.1 billion in 2Q25, compared to $64.1 billion in 2Q24 and $75.3 billion in 1Q25[10] Strategic Initiatives and Outlook - The company is targeting $90-$100 billion AUM in Private Markets by 2027[9] - The company expects total FY25 performance fees of $110–$130 million, up from $90–105 million across private and public strategies[39,41] - The company is on track for 33% FY25 margins assuming flat markets[42]