Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Adjusted earnings per unit increased by 12% year-over-year to $0.86, while net revenues rose by 5% to $885 million [25][26] - Total adjusted operating expenses remained flat at $582 million, with total compensation and benefits expenses increasing by 6% to $439 million [26][28] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform AUM was $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [6][7] - Private markets generated nearly $3 billion in net inflows, reflecting improved conditions in commercial real estate [7][8] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 2025 [11] - Emerging markets outperformed, while global developed equities underperformed compared to the U.S. [12][13] - The firm observed a rebound in client flows into American Income, indicating renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company aims to expand its third-party insurance asset management business, leveraging partnerships like the one with Fortitude [8][9] - A strategic alliance with Equitable enhances the firm's competitive advantage, allowing for the scaling of higher-fee private alternative strategies [9][10] - The focus remains on scalable, long-duration assets that align with sustainable organic growth and long-term profitability [31][34] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The firm is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [47][49] - The company is committed to investing in growth initiatives while maintaining expense discipline [34][56] Other Important Information - The firm has successfully expanded its private markets platform to nearly $80 billion, representing a 17% year-over-year growth [22] - The effective tax rate for the third quarter was 6%, consistent with full-year guidance [28] - The firm is raising its full-year performance fee guidance to $130 million-$155 million, driven by strong public market performance [32] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business, confirming that the Ruby Re relationship is performing as expected and that the FCA REIT sidecar is additive to their strategy [38][40] Question: What is the outlook for private credit and credit quality? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][43] Question: How is the Asia business performing post-trade conflicts? - The Asia business showed improvement, particularly in taxable fixed income, with strong engagement from institutional clients despite external noise [47][48] Question: What is the capital allocation strategy regarding buybacks? - The light buyback in the quarter was attributed to timing rather than any strategic shift, with plans to continue funding the deferred compensation plan [57] Question: How is the firm positioned for the bond reallocation? - Management indicated that they are well-positioned to benefit from the bond reallocation, particularly in Asia, with a strong distribution capability [60][61]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Net revenues for the third quarter were $885 million, a 5% increase year-over-year, while adjusted earnings per unit rose 12% to $0.86 [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income increased by 15% to $303 million, reflecting strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform reached $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [5][6] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [6][8] - Active equities experienced outflows of over $6 billion, primarily due to growth-oriented redemptions [6][7] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in the third quarter [11] - Emerging markets outperformed, while global developed equities underperformed the U.S. [11][12] - The firm observed a rebound in client flows into American Income, reflecting renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and enhancing its leadership in global insurance asset management [8] - A strategic alliance with Equitable is expected to provide a competitive advantage, allowing the company to scale higher-fee, longer-dated private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging partnerships and expanding capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The company is optimistic about capturing market share in Asia, particularly in taxable fixed income, despite geopolitical tensions [46][47] - Management emphasized the importance of innovation in retirement planning, with a focus on custom target date funds and lifetime income solutions [17][18] Other Important Information - The company is lowering its non-compensation expense projection for the full year to $600 to $610 million, reflecting enhanced operational efficiency [27] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed, with positive results expected [37][41] Question: What is the current state of credit quality in private credit? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][44] Question: How is the Asia business performing post-trade conflicts? - Management reported improvement in the Asia business, particularly in taxable fixed income, with strong engagement from institutional clients [46][47] Question: What is the capital allocation strategy regarding buybacks? - Management indicated that the light buyback this quarter was due to timing and not related to Equitable, with plans to fund deferred compensation [58] Question: How is the company positioned to benefit from bond reallocations? - Management highlighted strong demand for taxable fixed income in Asia and noted the company's success in the tax-exempt SMA space, indicating readiness to capture market share [60][61]

Financial Data and Key Metrics Changes - Firm wide assets under management (AUM) reached $860 billion, marking a new milestone [6] - Adjusted earnings per unit for Q3 were $0.86, a 12% increase year-over-year [40] - Net revenues for Q3 were $885 million, reflecting a 5% increase compared to the prior year [41] - Total adjusted operating expenses were roughly flat at $582 million compared to the prior year [42] - Adjusted operating margin rose to 34.2%, a 209 basis point increase from the prior year [51] Business Line Data and Key Metrics Changes - Bernstein Private Wealth AUM reached a record high of $153 billion, focusing on ultra high net worth clients [7] - Institutional asset management business AUM stood at $351 billion, catering to long duration capital pools [7] - Retail platform AUM was $356 billion, with strong growth in tax exempt fixed income and private alternatives [7][8] - Tax exempt inflows exceeded $4 billion, extending positive organic growth to 11 consecutive quarters [8] - Private markets generated nearly $3 billion of net inflows, reflecting improved conditions in commercial real estate [9] Market Data and Key Metrics Changes - U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 [18] - Small cap stocks outperformed large caps, with the Russell 2000 returning 12.4% [19] - Taxable fixed income sentiment improved, leading to slight net inflows in Q3 [22] - The firm is the number one retail municipal SMA manager, with a 26% annualized organic growth rate in tax exempt retail inflows [90] Company Strategy and Development Direction - The company is focused on expanding its insurance asset management business, with new partnerships and strategic investments [12] - A commitment to providing better outcomes for clients through diversified investment expertise and distribution capabilities [6] - The firm aims to achieve $90 billion to $100 billion in private markets AUM by 2027 [39] - Continued innovation in retirement solutions, including customized target date funds and lifetime income strategies [27][30] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [17] - The company is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [67] - Management expressed confidence in the stability of credit quality despite market volatility [62] - The firm is focused on enhancing margins and operational efficiency while investing in growth initiatives [52] Other Important Information - The firm has successfully onboarded seven new insurance GA relationships across eight strategies [13] - The effective tax rate for Q3 was 6%, in line with full year guidance [44] - The company is committed to distributing 100% of adjusted earnings to unitholders [40] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re timeline? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed [54][56] Question: What is the outlook for private credit and credit quality? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality [62] Question: How is the Asia business performing post-Liberation Day? - Management reported improvement in the Asia business, particularly in taxable fixed income, and noted strong engagement from institutional clients [67] Question: Can you clarify the capital allocation strategy regarding buybacks? - Management indicated that the light buyback activity was due to timing and not related to the Equitable conversion [82] Question: What is the outlook for bond reallocation and its impact on performance? - Management highlighted ongoing appetite for taxable fixed income and expressed confidence in capturing market share through innovative products [88]

Core Insights - AllianceBernstein L.P. has partnered with Pacific Life to enhance its multi-insurer platform for delivering lifetime income solutions to large Defined Contribution (DC) plans [1][2] Group 1: Company Developments - The addition of Pacific Life is part of AllianceBernstein's ongoing expansion of its retirement income capabilities, which includes the Lifetime Income Strategy (LIS) and the AB Secure Income Portfolio [2][3] - The Lifetime Income Strategy currently manages approximately $12 billion in assets, with $4.5 billion specifically in secured income [2] - AllianceBernstein has been a pioneer in offering flexible lifetime income solutions to the DC market since 2012, continuously adapting to client needs [3] Group 2: Product Offerings - The AB Secure Income Portfolio allows DC plan sponsors to implement lifetime income in various ways, providing participants with secure income streams and control over their accounts [3][5] - The multi-insurer structure of the platform aims to produce competitive withdrawal rates and mitigate risks for participants [5] Group 3: Market Position - As of June 2025, AllianceBernstein manages $829 billion in assets, indicating a strong market presence [7] - Pacific Life's involvement reflects a commitment to providing diverse lifetime income solutions for plan sponsors and their employees [5][8]