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Share Name | Share Symbol | Market | Type |
---|---|---|---|
AllianceBernstein Holding LP | NYSE:AB | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 33.50 | 0 | 01:00:00 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3434400 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
501 Commerce Street, Nashville, TN
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37203
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(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Units Rep. Assignments of Beneficial Ownership of LP Interests in AB Holding ("Units") | AB | New York Stock Exchange |
Large accelerated filer ☒
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Accelerated filer ☐ | Non-accelerated filer ☐ |
Smaller reporting company ☐
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Emerging growth company ☐
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Table of Contents | ||
AB
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2021 Annual Report |
i
|
Glossary of Certain Defined Terms | ||
AB |
AllianceBernstein L.P. (Delaware limited partnership formerly known as Alliance Capital Management L.P., “Alliance Capital”), the operating partnership, and its subsidiaries and, where appropriate, its predecessors, AB Holding and ACMC, Inc. and their respective subsidiaries.
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AB Holding | AllianceBernstein Holding L.P. (Delaware limited partnership). | ||||
AB Holding Partnership Agreement | the Amended and Restated Agreement of Limited Partnership of AB Holding, dated as of October 29, 1999 and as amended February 24, 2006. | ||||
AB Holding Units | units representing assignments of beneficial ownership of limited partnership interest in AB Holding. | ||||
AB Partnership Agreement | the Amended and Restated Agreement of Limited Partnership of AB, dated as of October 29, 1999 and as amended February 24, 2006. | ||||
AB Units | units of limited partnership interest in AB. | ||||
AUM | AB's Assets Under Management. | ||||
AXA |
AXA S.A. (société anonyme organized under the laws of France) is the holding company for the AXA Group, a worldwide leader in financial protection.
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Bernstein Transaction | AB's acquisition of the business and assets of SCB Inc., formerly known as Sanford C. Bernstein Inc., and the related assumption of the liabilities of that business, completed on October 2, 2000. | ||||
Equitable America | Equitable Financial Insurance Company of America (f/k/a MONY Life Insurance Company of America, an Arizona corporation), a subsidiary of Equitable Holdings. |
Equitable Financial | Equitable Financial Life Insurance Company (New York stock life insurance company), a subsidiary of Equitable Holdings. | ||||
Equitable Holdings or EQH | Equitable Holdings, Inc. (Delaware corporation) and its subsidiaries other than AB and its subsidiaries. | ||||
Exchange Act | the Securities Exchange Act of 1934, as amended. | ||||
ERISA | the Employee Retirement Income Security Act of 1974, as amended. | ||||
GAAP | U.S. Generally Accepted Accounting Principles. | ||||
General Partner | AllianceBernstein Corporation (Delaware corporation), the general partner of AB and AB Holding and a subsidiary of Equitable Holdings, and, where appropriate, ACMC, LLC, its predecessor. | ||||
Investment Advisers Act | the Investment Advisers Act of 1940, as amended. | ||||
Investment Company Act | the Investment Company Act of 1940, as amended. | ||||
NYSE | the New York Stock Exchange, Inc. | ||||
Partnerships | AB and AB Holding together. | ||||
SEC | the United States Securities and Exchange Commission. | ||||
Securities Act | the Securities Act of 1933, as amended. |
ii
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AllianceBernstein |
Part I | ||
Assets Under
Management (AUM)
($ billions)
|
Net Revenues
($ billions)
|
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2021 Annual Report |
1
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2
|
AllianceBernstein |
AUM by Client Domicile
($ in billions)
|
AUM by Investment Service
($ in billions)
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2021 Annual Report |
3
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Distribution Channels
Institutions
We offer to our institutional clients, which include private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and EQH and its subsidiaries, separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles (“Institutional Services”).
We manage the assets of our institutional clients pursuant to written investment management agreements or other arrangements, which generally are terminable at any time or upon relatively short notice by either party. In general, our written investment management agreements may not be assigned without the client's consent. For information about our institutional investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.
EQH and its subsidiaries constitute our largest institutional client. EQH and its subsidiaries combined AUM accounted for approximately 25%, 29% and 28% of our institutional AUM as of December 31, 2021, 2020 and 2019, respectively, and approximately 18%, 18% and 17% of our institutional revenues for 2021, 2020 and 2019, respectively. No single institutional client other than EQH and its respective subsidiaries accounted for more than approximately 2% of our net revenues for the year ended December 31, 2021.
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As of December 31, 2021, EQH and its subsidiaries combined AUM accounted for:
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Approximately
25%
of our institutional AUM.
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Approximately
18%
of our institutional revenues.
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EQH and Subsidiaries as a % of our Institutional AUM | EQH and Subsidiaries as a % of our Institutional Revenues | ||||
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4
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AllianceBernstein |
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Institutional Services Assets Under Management
(by Investment Service)
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Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 73,726 | $ | 60,067 | $ | 44,628 | 22.7 | % | 34.6 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
28,995 | 27,873 | 25,300 | 4.0 | 10.2 | ||||||||||||||||||||||||
Total Equity | 102,721 | 87,940 | 69,928 | 16.8 | 25.8 | ||||||||||||||||||||||||
U.S. | 47,409 | 41,241 | 35,210 | 15.0 | 17.1 | ||||||||||||||||||||||||
Global & Non-US | 55,312 | 46,699 | 34,718 | 18.4 | 34.5 | ||||||||||||||||||||||||
Total Equity | 102,721 | 87,940 | 69,928 | 16.8 | 25.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 155,940 | 164,048 | 157,717 | (4.9) | 4.0 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 1,108 | 1,271 | 1,209 | (12.8) | 5.1 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
224 | 84 | 89 | 166.7 | (5.6) | ||||||||||||||||||||||||
Total Fixed Income | 157,272 | 165,403 | 159,015 | (4.9) | 4.0 | ||||||||||||||||||||||||
U.S. | 110,312 | 116,833 | 108,714 | (5.6) | 7.5 | ||||||||||||||||||||||||
Global & Non-US | 46,960 | 48,570 | 50,301 | 26.1 | 9.6 | ||||||||||||||||||||||||
Total Fixed Income | 157,272 | 165,403 | 159,015 | (4.9) | 4.0 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 7,697 | 6,104 | 5,568 | 26.1 | 9.6 | ||||||||||||||||||||||||
Global & Non-US | 69,390 | 56,151 | 48,179 | 23.6 | 16.5 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 77,087 | 62,255 | 53,747 | 23.8 | 15.8 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 165,418 | 164,178 | 149,492 | 0.8 | 9.8 | ||||||||||||||||||||||||
Global & Non-US | 171,662 | 151,420 | 133,198 | 13.4 | 13.7 | ||||||||||||||||||||||||
Total | $ | 337,080 | $ | 315,598 | $ | 282,690 | 6.8 | 11.6 | |||||||||||||||||||||
Affiliated - EQH | 84,096 | 91,396 | 78,506 | (8.0) | 16.4 | ||||||||||||||||||||||||
Non-affiliated(3)
|
252,984 | 224,202 | 204,184 | 12.8 | 9.8 | ||||||||||||||||||||||||
Total | $ | 337,080 | $ | 315,598 | $ | 282,690 | 6.8 | 11.6 |
2021 Annual Report |
5
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|
||
Revenues from Institutional Services
(by Investment Service)
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Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 240,049 | $ | 170,802 | $ | 160,421 | 40.5 | % | 6.5 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
6,119 | 5,851 | 5,838 | 4.6 | 0.2 | ||||||||||||||||||||||||
Total Equity | 246,168 | 176,653 | 166,259 | 39.4 | 6.3 | ||||||||||||||||||||||||
U.S. | 97,522 | 69,795 | 66,098 | 39.7 | 5.6 | ||||||||||||||||||||||||
Global & Non-US | 148,646 | 106,858 | 100,161 | 39.1 | 6.7 | ||||||||||||||||||||||||
Total Equity | 246,168 | 176,653 | 166,259 | 39.4 | 6.3 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 199,866 | 194,026 | 204,087 | 3.0 | (4.9) | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 1,356 | 1,355 | 1,309 | 0.1 | 3.5 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
105 | 82 | 107 | 28.0 | (23.4) | ||||||||||||||||||||||||
Fixed Income Servicing(2)
|
14,738 | 14,108 | 13,215 | 4.5 | 6.8 | ||||||||||||||||||||||||
Total Fixed Income | 216,065 | 209,571 | 218,718 | 3.1 | (4.2) | ||||||||||||||||||||||||
U.S. | 124,004 | 118,924 | 118,345 | 4.3 | 0.5 | ||||||||||||||||||||||||
Global & Non-US | 92,061 | 90,647 | 100,373 | 1.6 | (9.7) | ||||||||||||||||||||||||
Total Fixed Income | 216,065 | 209,571 | 218,718 | 3.1 | (4.2) | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(3):
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U.S. | 64,646 | 52,222 | 54,582 | 23.8 | (4.3) | ||||||||||||||||||||||||
Global & Non-US | 59,179 | 73,354 | 39,405 | (19.3) | 86.2 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 123,825 | 125,576 | 93,987 | (1.4) | 33.6 | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 286,172 | 240,941 | 239,025 | 18.8 | 0.8 | ||||||||||||||||||||||||
Global & Non-US | 299,886 | 270,859 | 239,939 | 10.7 | 12.9 | ||||||||||||||||||||||||
Total | 586,058 | 511,800 | 478,964 | 14.5 | 6.9 | ||||||||||||||||||||||||
Distribution Revenues | 474 | 588 | 704 | (19.4) | (16.5) | ||||||||||||||||||||||||
Shareholder Servicing Fees | 485 | 526 | 476 | (7.8) | 10.5 | ||||||||||||||||||||||||
Total | $ | 587,017 | $ | 512,914 | $ | 480,144 | 14.4 | 6.8 | |||||||||||||||||||||
Affiliated - EQH | 105,415 | 90,101 | 82,413 | 17.0 | 9.3 | ||||||||||||||||||||||||
Non-affiliated(4)
|
481,602 | 422,813 | 397,731 | 13.9 | 6.3 | ||||||||||||||||||||||||
Total | $ | 587,017 | $ | 512,914 | $ | 480,144 | 14.4 | 6.8 |
6
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AllianceBernstein |
2021 Annual Report |
7
|
Retail Services Assets Under Management
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 154,200 | $ | 106,866 | $ | 81,622 | 44.3 | % | 30.9 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
40,821 | 35,995 | 34,683 | 13.4 | 3.8 | ||||||||||||||||||||||||
Total Equity | 195,021 | 142,861 | 116,305 | 36.5 | 22.8 | ||||||||||||||||||||||||
U.S. | 152,106 | 108,506 | 84,278 | 40.2 | 28.7 | ||||||||||||||||||||||||
Global & Non-US | 42,915 | 34,355 | 32,027 | 24.9 | 7.3 | ||||||||||||||||||||||||
Total Equity | 195,021 | 142,861 | 116,305 | 36.5 | 22.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 75,813 | 84,654 | 88,408 | (10.4) | (4.2) | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 29,009 | 23,202 | 20,750 | 25.0 | 11.8 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
12,762 | 8,231 | 8,825 | 55.0 | (6.7) | ||||||||||||||||||||||||
Total Fixed Income | 117,584 | 116,087 | 117,983 | 1.3 | (1.6) | ||||||||||||||||||||||||
U.S. | 46,361 | 36,137 | 34,830 | 28.3 | 3.8 | ||||||||||||||||||||||||
Global & Non-US | 71,223 | 79,950 | 83,153 | (10.9) | (3.9) | ||||||||||||||||||||||||
Total Fixed Income | 117,584 | 116,087 | 117,983 | 1.3 | (1.6) | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
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U.S. | 3,595 | 3,071 | 2,470 | 17.1 | 24.3 | ||||||||||||||||||||||||
Global & Non-US | 3,718 | 3,321 | 2,408 | 12.0 | 37.9 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 7,313 | 6,392 | 4,878 | 14.4 | 31.0 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 202,062 | 147,714 | 121,578 | 36.8 | 21.5 | ||||||||||||||||||||||||
Global & Non-US | 117,856 | 117,626 | 117,588 | 0.2 | — | ||||||||||||||||||||||||
Total | $ | 319,918 | $ | 265,340 | $ | 239,166 | 20.6 | 10.9 | |||||||||||||||||||||
Affiliated - EQH | 44,417 | 36,765 | 34,448 | 20.8 | 6.7 | ||||||||||||||||||||||||
Non-affiliated(3)
|
275,501 | 228,575 | 204,718 | 20.5 | 11.7 | ||||||||||||||||||||||||
Total | $ | 319,918 | $ | 265,340 | $ | 239,166 | 20.6 | 10.9 |
8
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AllianceBernstein |
Revenues from Retail Services
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 766,578 | $ | 508,973 | $ | 436,617 | 50.6 | % | 16.6 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
14,773 | 14,347 | 16,173 | 3.0 | (11.3) | ||||||||||||||||||||||||
Total Equity | 781,351 | 523,320 | 452,790 | 49.3 | 15.6 | ||||||||||||||||||||||||
U.S. | 556,398 | 355,542 | 292,640 | 56.5 | 21.5 | ||||||||||||||||||||||||
Global & Non-US | 224,953 | 167,778 | 160,150 | 34.1 | 4.8 | ||||||||||||||||||||||||
Total Equity | 781,351 | 523,320 | 452,790 | 49.3 | 15.6 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 517,327 | 534,164 | 506,849 | (3.2) | 5.4 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 84,945 | 70,734 | 65,474 | 20.1 | 8.0 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
12,994 | 12,229 | 12,105 | 6.3 | 1.0 | ||||||||||||||||||||||||
Total Fixed Income | 615,266 | 617,127 | 584,428 | (0.3) | 5.6 | ||||||||||||||||||||||||
U.S. | 115,248 | 101,825 | 98,310 | 13.2 | 3.6 | ||||||||||||||||||||||||
Global & Non-US | 500,018 | 515,302 | 486,118 | (3.0) | 6.0 | ||||||||||||||||||||||||
Total Fixed Income | 615,266 | 617,127 | 584,428 | (0.3) | 5.6 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
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U.S. | 81,872 | 57,069 | 51,958 | 43.5 | 9.8 | ||||||||||||||||||||||||
Global & Non-US | 13,117 | 12,723 | 8,946 | 3.1 | 42.2 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 94,989 | 69,792 | 60,904 | 36.1 | 14.6 | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 753,518 | 514,436 | 442,908 | 46.5 | 16.1 | ||||||||||||||||||||||||
Global & Non-US | 738,086 | 695,803 | 655,214 | 6.1 | 6.2 | ||||||||||||||||||||||||
Consolidated company-sponsored investment funds | 1,243 | 733 | 883 | 69.6 | (17.0) | ||||||||||||||||||||||||
Total | 1,492,847 | 1,210,972 | 1,099,005 | 23.3 | 10.2 | ||||||||||||||||||||||||
Distribution Revenues | 644,125 | 522,056 | 447,050 | 23.4 | 16.8 | ||||||||||||||||||||||||
Shareholder Servicing Fees | 86,857 | 78,920 | 73,777 | 10.1 | 7.0 | ||||||||||||||||||||||||
Total | $ | 2,223,829 | $ | 1,811,948 | $ | 1,619,832 | 22.7 | 11.9 | |||||||||||||||||||||
Affiliated - EQH | 28,334 | 27,130 | 27,737 | 4.4 | (2.2) | ||||||||||||||||||||||||
Non-affiliated(3)
|
2,195,495 | 1,784,818 | 1,592,095 | 23.0 | 12.1 | ||||||||||||||||||||||||
Total | $ | 2,223,829 | $ | 1,811,948 | $ | 1,619,832 | 22.7 | 11.9 |
2021 Annual Report |
9
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Private Wealth Services Assets Under Management
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 59,709 | $ | 50,854 | $ | 50,934 | 17.4 | % | (0.2) | % | |||||||||||||||||||
Equity Passively Managed(1)
|
1,764 | 666 | 174 | 164.9 | % |
n/m
|
|||||||||||||||||||||||
Total Equity | 61,473 | 51,520 | 51,108 | 19.3 | 0.8 | ||||||||||||||||||||||||
U.S. | 35,014 | 28,776 | 26,982 | 21.7 | 6.6 | ||||||||||||||||||||||||
Global & Non-US | 26,459 | 22,744 | 24,126 | 16.3 | (5.7) | ||||||||||||||||||||||||
Total Equity | 61,473 | 51,520 | 51,108 | 19.3 | 0.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 14,567 | 14,515 | 12,170 | 0.4 | 19.3 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 26,929 | 25,764 | 25,117 | 4.5 | 2.6 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
230 | 195 | 372 | 17.9 | (47.6) | ||||||||||||||||||||||||
Total Fixed Income | 41,726 | 40,474 | 37,659 | 3.1 | 7.5 | ||||||||||||||||||||||||
U.S. | 36,166 | 35,042 | 32,685 | 3.2 | 7.2 | ||||||||||||||||||||||||
Global & Non-US | 5,561 | 5,432 | 4,974 | 2.4 | 9.2 | ||||||||||||||||||||||||
Total Fixed Income | 41,727 | 40,474 | 37,659 | 3.1 | 7.5 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 6,926 | 5,927 | 6,808 | 16.9 | (12.9) | ||||||||||||||||||||||||
Global & Non-US | 11,446 | 7,064 | 5,484 | 62.0 | 28.8 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 18,372 | 12,991 | 12,292 | 41.4 | 5.7 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 78,106 | 69,745 | 66,475 | 12.0 | 4.9 | ||||||||||||||||||||||||
Global & Non-US | 43,466 | 35,240 | 34,584 | 23.3 | 1.9 | ||||||||||||||||||||||||
Total | $ | 121,572 | $ | 104,985 | $ | 101,059 | 15.8 | 3.9 |
10
|
AllianceBernstein |
Revenues from Private Wealth Services
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 584,455 | $ | 487,899 | $ | 510,911 | 19.8 | % | (4.5) | % | |||||||||||||||||||
Equity Passively Managed(1)
|
4,780 | 1,113 | 334 | n/m |
n/m
|
||||||||||||||||||||||||
Total Equity | 589,235 | 489,012 | 511,245 | 20.5 | (4.3) | ||||||||||||||||||||||||
U.S. | 325,154 | 263,938 | 267,815 | 23.2 | (1.4) | ||||||||||||||||||||||||
Global & Non-US | 264,081 | 225,074 | 243,430 | 17.3 | (7.5) | ||||||||||||||||||||||||
Total Equity | 589,235 | 489,012 | 511,245 | 20.5 | (4.3) | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 72,404 | 71,575 | 63,964 | 1.2 | 11.9 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 130,391 | 123,952 | 122,447 | 5.2 | 1.2 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
2,634 | 2,891 | 4,475 | (8.9) | (35.4) | ||||||||||||||||||||||||
Total Fixed Income | 205,429 | 198,418 | 190,886 | 3.5 | 3.9 | ||||||||||||||||||||||||
U.S. | 167,402 | 160,666 | 156,909 | 4.2 | 2.4 | ||||||||||||||||||||||||
Global & Non-US | 38,027 | 37,752 | 33,977 | 0.7 | 11.1 | ||||||||||||||||||||||||
Total Fixed Income | 205,429 | 198,418 | 190,886 | 3.5 | 3.9 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 249,432 | 109,169 | 123,216 | 128.5 | (11.4) | ||||||||||||||||||||||||
Global & Non-US | 71,524 | 76,065 | 68,728 | (6.0) | 10.7 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 320,956 | 185,234 | 191,944 | 73.3 | (3.5) | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 741,987 | 533,773 | 547,940 | 39.0 | (2.6) | ||||||||||||||||||||||||
Global & Non-US | 373,632 | 338,891 | 346,135 | 10.3 | (2.1) | ||||||||||||||||||||||||
Total | 1,115,619 | 872,664 | 894,075 | 27.8 | (2.4) | ||||||||||||||||||||||||
Distribution Revenues | 7,641 | 7,137 | 7,289 | 7.1 | (2.1) | ||||||||||||||||||||||||
Shareholder Servicing Fees | 2,882 | 2,871 | 3,141 | 0.4 | (8.6) | ||||||||||||||||||||||||
Total | $ | 1,126,142 | $ | 882,672 | $ | 904,505 | 27.6 | (2.4) |
2021 Annual Report |
11
|
Revenues from Bernstein Research Services
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Bernstein Research Services | $ | 452,017 | $ | 459,744 | $ | 407,911 | (1.7 | %) | 12.7 | % |
12
|
AllianceBernstein |
2021 Annual Report |
13
|
14
|
AllianceBernstein |
Region: | Female | % Female | Male | % Male | Grand Total | % of Total | ||||||||||||||
Americas | 1,124 | 37 | % | 1,943 | 63 | % | 3,067 | 75 | % | |||||||||||
Asia ex Japan | 225 | 51 | % | 214 | 49 | % | 439 | 11 | % | |||||||||||
EMEA | 183 | 35 | % | 333 | 65 | % | 516 | 13 | % | |||||||||||
Japan | 46 | 55 | % | 38 | 45 | % | 84 | 2 | % | |||||||||||
Grand Total(1)
|
1,578 | 38 | % | 2,528 | 62 | % | 4,106 | 100 | % |
2021 Annual Report |
15
|
16
|
AllianceBernstein |
2021 Annual Report |
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|
18
|
AllianceBernstein |
2021 Annual Report |
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|
20
|
AllianceBernstein |
2021 Annual Report |
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|
22
|
AllianceBernstein |
2021 Annual Report |
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|
24
|
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2021 Annual Report |
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|
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|
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2021 Annual Report |
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|
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|
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2021 Annual Report |
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|
Part II | ||
30
|
AllianceBernstein |
Issuer Purchases of Equity Securities
|
||
Period |
Total
Number of AB Holding Units Purchased |
Average
Price Paid Per AB Holding Unit, net of Commissions |
Total
Number of AB Holding Units Purchased as Part of Publicly Announced Plans or Programs |
Maximum
Number (or Approximate Dollar Value) of AB Holding Units that May Yet Be Purchased Under the Plans or Programs |
|||||||||||||
10/1/21-10/31/21(1)(2)
|
281,579 | $ | 50.46 | — | — | ||||||||||||
11/1/21-11/30/21 | — | — | — | — | |||||||||||||
12/1/21-12/31/21(1)
|
2,449,657 | 49.95 | — | — | |||||||||||||
Total | 2,731,236 | $ | 50.00 | — | — |
2021 Annual Report |
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|
32
|
AllianceBernstein |
2021 Annual Report |
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|
34
|
AllianceBernstein |
2021 Annual Report |
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|
36
|
AllianceBernstein |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | 32.6 | % | 15.1 | % | |||||||||||||||||||
Weighted average equity ownership interest | 36.2 | % | 35.6 | % | 35.4 | % | |||||||||||||||||||||||
Equity in net income attributable to AB Unitholders | $ | 416,326 | $ | 308,404 | $ | 266,292 | 35.0 | 15.8 | |||||||||||||||||||||
Income taxes | 30,483 | 29,024 | 27,729 | 5.0 | 4.7 | ||||||||||||||||||||||||
Net income of AB Holding | $ | 385,843 | $ | 279,380 | $ | 238,563 | 38.1 | 17.1 | |||||||||||||||||||||
Diluted net income per AB Holding Unit | $ | 3.88 | $ | 2.88 | $ | 2.49 | 34.7 | 15.7 | |||||||||||||||||||||
Distributions per AB Holding Unit (1)
|
$ | 3.90 | $ | 2.91 | $ | 2.53 | 34.0 | 15.0 |
2021 Annual Report |
37
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
AB non-GAAP adjustments, before taxes | $ | 2,959 | $ | 6,393 | $ | 8,648 | ||||||||||||||
AB Income tax benefit (expense) on non-GAAP adjustments | 71 | (523) | 1,070 | |||||||||||||||||
AB non-GAAP adjustments, after taxes | 3,030 | 5,870 | 9,718 | |||||||||||||||||
AB Holding’s weighted average equity ownership interest in AB | 36.2 | % | 35.6 | % | 35.4 | % | ||||||||||||||
Impact on AB Holding’s net income of AB non-GAAP adjustments | $ | 1,098 | $ | 2,090 | $ | 3,441 | ||||||||||||||
Net income - diluted, GAAP basis | $ | 385,873 | $ | 279,436 | $ | 238,642 | ||||||||||||||
Impact on AB Holding’s net income of AB non-GAAP adjustments | 1,098 | 2,090 | 3,441 | |||||||||||||||||
Adjusted net income - diluted | $ | 386,971 | $ | 281,526 | $ | 242,083 | ||||||||||||||
Diluted net income per AB Holding Unit, GAAP basis | $ | 3.88 | $ | 2.88 | $ | 2.49 | ||||||||||||||
Impact of AB non-GAAP adjustments | 0.01 | 0.03 | 0.03 | |||||||||||||||||
Adjusted diluted net income per AB Holding Unit | $ | 3.89 | $ | 2.91 | $ | 2.52 |
38
|
AllianceBernstein |
As of December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Institutions | $337.1 | $315.6 | $282.7 | 6.8 | % | 11.6 | % | ||||||||||||||||||||||
Retail | 319.9 | 265.3 | 239.2 | 20.6 | 10.9 | ||||||||||||||||||||||||
Private Wealth Management | 121.6 | 105.0 | 101.0 | 15.8 | 3.9 | ||||||||||||||||||||||||
Total | $778.6 | $685.9 | $622.9 | 13.5 | 10.1 |
As of December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Actively Managed | $287.6 | $217.8 | $177.2 | 32.1 | % | 22.9 | % | ||||||||||||||||||||||
Passively Managed(1)
|
71.6 | 64.5 | 60.1 | 10.9 | 7.3 | ||||||||||||||||||||||||
Total Equity | 359.2 | 282.3 | 237.3 | 27.2 | 19.0 | ||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||
Actively Managed | |||||||||||||||||||||||||||||
Taxable | 246.3 | 263.2 | 258.3 | (6.4) | 1.9 | ||||||||||||||||||||||||
Tax–exempt | 57.1 | 50.3 | 47.1 | 13.6 | 6.7 | ||||||||||||||||||||||||
Total | 303.4 | 313.5 | 305.4 | (3.2) | 2.6 | ||||||||||||||||||||||||
Passively Managed(1)
|
13.2 | 8.5 | 9.3 | 55.3 | (8.4) | ||||||||||||||||||||||||
Total Fixed Income | 316.6 | 322.0 | 314.7 | (1.7) | 2.3 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2)
|
|||||||||||||||||||||||||||||
Actively Managed | 97.3 | 79.1 | 69.3 | 23.0 | 14.2 | ||||||||||||||||||||||||
Passively Managed(1)
|
5.5 | 2.5 | 1.6 | 116.6 | 54.1 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 102.8 | 81.6 | 70.9 | 25.9 | 15.1 | ||||||||||||||||||||||||
Total | $778.6 | $685.9 | $622.9 | 13.5 | % | 10.1 | % |
2021 Annual Report |
39
|
Distribution Channel | ||||||||||||||||||||||||||
Institutions | Retail |
Private
Wealth Management |
Total | |||||||||||||||||||||||
(in billions) | ||||||||||||||||||||||||||
Balance as of December 31, 2020 | $315.6 | $265.3 | $105.0 | $685.9 | ||||||||||||||||||||||
Long-term flows: | ||||||||||||||||||||||||||
Sales/new accounts | 31.7 | 100.0 | 18.3 | 150.0 | ||||||||||||||||||||||
Redemptions/terminations | (23.4) | (65.1) | (15.3) | (103.8) | ||||||||||||||||||||||
Cash flow/unreinvested dividends | (6.0) | (14.1) | — | (20.1) | ||||||||||||||||||||||
Net long-term inflows(1)
|
2.3 | 20.8 | 3.0 | 26.1 | ||||||||||||||||||||||
Transfers | (0.2) | 0.2 | — | — | ||||||||||||||||||||||
Market appreciation | 19.4 | 33.6 | 13.6 | 66.6 | ||||||||||||||||||||||
Net change | 21.5 | 54.6 | 16.6 | 92.7 | ||||||||||||||||||||||
Balance as of December 31, 2021 | $337.1 | $319.9 | $121.6 | $778.6 | ||||||||||||||||||||||
Balance as of December 31, 2019 | $282.7 | $239.2 | $101.0 | $622.9 | ||||||||||||||||||||||
Long-term flows: | ||||||||||||||||||||||||||
Sales/new accounts | 30.9 | 78.9 | 14.3 | 124.1 | ||||||||||||||||||||||
Redemptions/terminations | (23.3) | (69.5) | (16.5) | (109.3) | ||||||||||||||||||||||
Cash flow/unreinvested dividends | (6.6) | (11.0) | 0.2 | (17.4) | ||||||||||||||||||||||
Net long-term inflows (outflows)(1)
|
1.0 | (1.6) | (2.0) | (2.6) | ||||||||||||||||||||||
Acquisitions | — | 0.2 | — | 0.2 | ||||||||||||||||||||||
Transfers | 1.4 | (0.6) | (0.8) | — | ||||||||||||||||||||||
Market appreciation | 30.5 | 28.1 | 6.8 | 65.4 | ||||||||||||||||||||||
Net change | 32.9 | 26.1 | 4.0 | 63.0 | ||||||||||||||||||||||
Balance as of December 31, 2020 | $315.6 | $265.3 | $105.0 | $685.9 |
40
|
AllianceBernstein |
Investment Service | |||||||||||||||||||||||||||||||||||||||||
Equity
Actively Managed |
Equity
Passively
Managed(1)
|
Fixed
Income Actively Managed- Taxable |
Fixed Income
Actively Managed-Tax- Exempt |
Fixed
Income
Passively
Managed(1)
|
Alternatives/
Multi-Asset
Solutions(2)
|
Total | |||||||||||||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $217.8 | $64.5 | $263.2 | $50.3 | $8.5 | $81.6 | $685.9 | ||||||||||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 72.9 | 1.4 | 44.9 | 13.5 | 4.6 | 12.7 | 150.0 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (39.6) | (1.1) | (52.6) | (7.8) | (0.4) | (2.3) | (103.8) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (11.4) | (7.8) | (2.2) | 0.3 | 0.8 | 0.2 | (20.1) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows)(3)
|
21.9 | (7.5) | (9.9) | 6.0 | 5.0 | 10.6 | 26.1 | ||||||||||||||||||||||||||||||||||
Market appreciation (depreciation) | 47.9 | 14.6 | (7.0) | 0.8 | (0.3) | 10.6 | 66.6 | ||||||||||||||||||||||||||||||||||
Net change | 69.8 | 7.1 | (16.9) | 6.8 | 4.7 | 21.2 | 92.7 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $287.6 | $71.6 | $246.3 | $57.1 | $13.2 | $102.8 | $778.6 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $177.2 | $60.1 | $258.3 | $47.1 | $9.3 | $70.9 | $622.9 | ||||||||||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 51.4 | 1.7 | 54.3 | 10.3 | — | 6.4 | 124.1 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (36.7) | (1.9) | (58.3) | (9.5) | (0.3) | (2.6) | (109.3) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (7.3) | (4.4) | (5.8) | 0.2 | (1.3) | 1.2 | (17.4) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows)(3)
|
7.4 | (4.6) | (9.8) | 1.0 | (1.6) | 5.0 | (2.6) | ||||||||||||||||||||||||||||||||||
Acquisitions | — | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||
Market appreciation | 33.2 | 9.0 | 14.7 | 2.2 | 0.8 | 5.5 | 65.4 | ||||||||||||||||||||||||||||||||||
Net change | 40.6 | 4.4 | 4.9 | 3.2 | (0.8) | 10.7 | 63.0 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $217.8 | $64.5 | $263.2 | $50.3 | $8.5 | $81.6 | $685.9 |
2021 Annual Report |
41
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in billions) | ||||||||||||||
Actively Managed | ||||||||||||||
Equity | $ | 21.9 | $ | 7.4 | ||||||||||
Fixed Income | (3.9) | (8.8) | ||||||||||||
Alternatives/Multi- Asset Solutions | 8.3 | 4.5 | ||||||||||||
Total | 26.3 | 3.1 | ||||||||||||
Passively Managed | ||||||||||||||
Equity | (7.5) | (4.6) | ||||||||||||
Fixed Income | 5.0 | (1.6) | ||||||||||||
Alternatives/Multi- Asset Solutions | 2.3 | 0.5 | ||||||||||||
Total | (0.2) | (5.7) | ||||||||||||
Total net long-term inflows (outflows) | $ | 26.1 | $ | (2.6) |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Distribution Channel: | |||||||||||||||||||||||||||||
Institutions | $ | 325.7 | $ | 285.9 | $ | 265.4 | 13.9 | % | 7.7 | % | |||||||||||||||||||
Retail | 291.0 | 236.5 | 212.3 | 23.0 | 11.4 | ||||||||||||||||||||||||
Private Wealth Management | 114.1 | 97.1 | 96.5 | 17.5 | 0.7 | ||||||||||||||||||||||||
Total | $ | 730.8 | $ | 619.5 | $ | 574.2 | 18.0 | 7.9 | |||||||||||||||||||||
Investment Service: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 252.2 | $ | 179.8 | $ | 158.4 | 40.2 | 13.5 | |||||||||||||||||||||
Equity Passively Managed(1)
|
68.7 | 57.1 | 56.4 | 20.5 | 1.2 | ||||||||||||||||||||||||
Fixed Income Actively Managed – Taxable | 253.1 | 254.4 | 239.7 | (0.5) | 6.2 | ||||||||||||||||||||||||
Fixed Income Actively Managed – Tax-exempt | 53.8 | 47.9 | 44.6 | 12.3 | 7.5 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
9.6 | 9.4 | 9.4 | 1.4 | 0.2 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2)
|
93.4 | 70.9 | 65.7 | 31.7 | 7.8 | ||||||||||||||||||||||||
Total | $ | 730.8 | $ | 619.5 | $ | 574.2 | 18.0 | 7.9 |
42
|
AllianceBernstein |
1-Year |
3-Year(1)
|
5-Year(1)
|
|||||||||
Global High Income - Hedged (fixed income) | |||||||||||
Absolute return | 4.8 | % | 7.8 | % | 5.6 | % | |||||
Relative return (vs. Bloomberg Barclays Global High Yield Index - Hedged) | 2.3 | 0.7 | 0.3 | ||||||||
Global Plus - Hedged (fixed income) | |||||||||||
Absolute return | (0.5) | 4.6 | 3.8 | ||||||||
Relative return (vs. Bloomberg Barclays Global Aggregate Index - Hedged) | 0.9 | 0.6 | 0.4 | ||||||||
Intermediate Municipal Bonds (fixed income) | |||||||||||
Absolute return | 1.8 | 4.0 | 3.4 | ||||||||
Relative return (vs. Lipper Short/Int. Blended Muni Fund Avg) | 0.9 | 1.0 | 0.8 | ||||||||
U.S. Strategic Core Plus (fixed income) | |||||||||||
Absolute return | (0.5) | 5.5 | 4.2 | ||||||||
Relative return (vs. Bloomberg Barclays U.S. Aggregate Index) | 1.1 | 0.7 | 0.6 | ||||||||
Emerging Market Debt (fixed income) | |||||||||||
Absolute return | (2.1) | 6.7 | 4.9 | ||||||||
Relative return (vs. JPM EMBI Global/JPM EMBI) | (0.6) | 0.7 | 0.4 | ||||||||
Sustainable Global Thematic | |||||||||||
Absolute return | 23.7 | 31.7 | 23.5 | ||||||||
Relative return (vs. MSCI ACWI Index) | 5.2 | 11.3 | 9.1 |
2021 Annual Report |
43
|
1-Year |
3-Year(1)
|
5-Year(1)
|
|||||||||
International Strategic Core Equity | |||||||||||
Absolute return | 10.8 | 12.3 | 10.4 | ||||||||
Relative return (vs. MSCI EAFE Index) | (0.4) | (1.3) | 0.8 | ||||||||
U.S. Small & Mid Cap Value | |||||||||||
Absolute return | 37.0 | 20.2 | 11.1 | ||||||||
Relative return (vs. Russell 2500 Value Index) | 9.2 | 1.9 | 1.3 | ||||||||
U.S. Strategic Value | |||||||||||
Absolute return | 28.3 | 16.5 | 9.3 | ||||||||
Relative return (vs. Russell 1000 Value Index) | 3.1 | (1.2) | (1.8) | ||||||||
U.S. Small Cap Growth | |||||||||||
Absolute return | 10.5 | 33.1 | 26.3 | ||||||||
Relative return (vs. Russell 2000 Growth Index) | 7.7 | 12.0 | 11.8 | ||||||||
U.S. Large Cap Growth | |||||||||||
Absolute return | 29.3 | 33.2 | 26.4 | ||||||||
Relative return (vs. Russell 1000 Growth Index) | 1.7 | (0.8) | 1.1 | ||||||||
U.S. Small & Mid Cap Growth | |||||||||||
Absolute return | 11.9 | 31.5 | 23.9 | ||||||||
Relative return (vs. Russell 2500 Growth Index) | 6.9 | 6.4 | 6.3 | ||||||||
Concentrated U.S. Growth | |||||||||||
Absolute return | 32.4 | 31.3 | 23.6 | ||||||||
Relative return (vs. S&P 500 Index) | 3.7 | 5.3 | 5.1 | ||||||||
Select U.S. Equity | |||||||||||
Absolute return | 31.2 | 25.9 | 18.7 | ||||||||
Relative return (vs. S&P 500 Index) | 2.5 | (0.2) | 0.3 | ||||||||
Strategic Equities | |||||||||||
Absolute return | 26.9 | 23.7 | 16.3 | ||||||||
Relative return (vs. Russell 3000 Index) | 1.2 | (2.0) | (1.6) | ||||||||
Global Core Equity | |||||||||||
Absolute return | 19.4 | 19.6 | 15.6 | ||||||||
Relative return (vs. MSCI ACWI Index) | 0.8 | (0.8) | 1.2 | ||||||||
U.S. Strategic Core Equity | |||||||||||
Absolute return | 25.1 | 21.4 | 15.6 | ||||||||
Relative return (vs. S&P 500 Index) | (3.7) | (4.7) | (2.9) | ||||||||
Select U.S. Equity Long/Short | |||||||||||
Absolute return | 19.4 | 16.6 | 12.5 | ||||||||
Relative return (vs. S&P 500 Index) | (9.3) | (9.5) | (6.0) |
44
|
AllianceBernstein |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | 19.8 | % | 5.4 | % | |||||||||||||||||||
Expenses | 3,225,140 | 2,801,100 | 2,694,995 | 15.1 | 3.9 | ||||||||||||||||||||||||
Operating income | 1,216,462 | 907,436 | 823,437 | 34.1 | 10.2 | ||||||||||||||||||||||||
Income taxes | 62,728 | 45,653 | 41,754 | 37.4 | 9.3 | ||||||||||||||||||||||||
Net income | 1,153,734 | 861,783 | 781,683 | 33.9 | 10.2 | ||||||||||||||||||||||||
Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | n/m | n/m | ||||||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | 32.6 | 15.1 | |||||||||||||||||||||
Diluted net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 | 31.0 | 14.7 | |||||||||||||||||||||
Distributions per AB Unit | $ | 4.19 | $ | 3.20 | $ | 2.82 | 30.9 | 13.5 | |||||||||||||||||||||
Operating margin(1)
|
27.3 | % | 24.6 | % | 22.6 | % |
Higher base advisory fees | $ | 486.6 | |||
Higher distribution revenues | 122.5 | ||||
Higher performance-based fees | 112.5 | ||||
Higher employee compensation and benefits | (221.8) | ||||
Higher promotion and servicing expenses | (153.5) | ||||
Higher general and administrative expenses | (64.5) | ||||
Other | 0.9 | ||||
$ | 282.7 |
Higher base advisory fees | $ | 90.4 | |||
Higher distribution revenues | 74.7 | ||||
Higher Bernstein Research Services revenue | 51.8 | ||||
Higher net income of consolidated entities attributable to non-controlling interest | 33.8 | ||||
Lower performance-based fees | 33.0 | ||||
Higher promotion and servicing expenses | (63.6) | ||||
Higher investment losses | (55.1) | ||||
Higher employee compensation and benefits | (51.4) | ||||
Other | 0.3 | ||||
$ | 113.9 |
2021 Annual Report |
45
|
Units Outstanding
|
||
Cash Distributions
|
||
Management Operating Metrics
|
||
46
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net revenues, US GAAP basis | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Distribution-related adjustments: | ||||||||||||||||||||
Distribution revenues | (652,240) | (529,781) | (455,043) | |||||||||||||||||
Investment advisory services fees | (90,242) | (66,858) | (47,951) | |||||||||||||||||
Pass through adjustments: | ||||||||||||||||||||
Investment advisory services fees | (40,628) | (18,279) | (20,914) | |||||||||||||||||
Other revenues | (37,209) | (39,333) | (35,926) | |||||||||||||||||
Impact of consolidated company-sponsored funds | (6,933) | 954 | (33,044) | |||||||||||||||||
Long-term incentive compensation-related investment gains and dividend and interest | (6,694) | (6,772) | (8,939) | |||||||||||||||||
Write-down of investment | 1,880 | 859 | — | |||||||||||||||||
Adjusted net revenues | $ | 3,609,536 | $ | 3,049,326 | $ | 2,916,615 | ||||||||||||||
Operating income, US GAAP basis | $ | 1,216,462 | $ | 907,436 | $ | 823,437 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Real estate | (3,162) | 2,880 | 2,623 | |||||||||||||||||
Long-term incentive compensation-related items | 687 | (83) | 1,217 | |||||||||||||||||
EQH award compensation | 940 | 802 | 1,125 | |||||||||||||||||
Write-down of investment | 1,880 | 859 | — | |||||||||||||||||
Acquisition-related expenses | 3,214 | 3,301 | 6,734 | |||||||||||||||||
Contingent payment arrangements | (600) | (1,366) | (3,051) | |||||||||||||||||
Sub-total of non-GAAP adjustments | 2,959 | 6,393 | 8,648 | |||||||||||||||||
Less: Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | |||||||||||||||||
Adjusted operating income | 1,214,310 | 917,998 | 802,444 | |||||||||||||||||
Adjusted income taxes | 62,658 | 46,176 | 40,684 | |||||||||||||||||
Adjusted net income | $ | 1,151,652 | $ | 871,822 | $ | 761,760 | ||||||||||||||
Diluted net income per AB Unit, GAAP basis | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Impact of non-GAAP adjustments | 0.02 | 0.02 | 0.03 | |||||||||||||||||
Adjusted diluted net income per AB Unit | $ | 4.20 | $ | 3.21 | $ | 2.81 | ||||||||||||||
Operating margin, GAAP basis | 27.3 | % | 24.6 | % | 22.6 | % | ||||||||||||||
Impact of non-GAAP adjustments | 6.3 | 5.5 | 4.9 | |||||||||||||||||
Adjusted operating margin | 33.6 | % | 30.1 | % | 27.5 | % |
2021 Annual Report |
47
|
48
|
AllianceBernstein |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Investment advisory and services fees: | |||||||||||||||||||||||||||||
Institutions: | |||||||||||||||||||||||||||||
Base fees | $ | 540,478 | $ | 458,449 | $ | 451,125 | 17.9 | % | 1.6 | % | |||||||||||||||||||
Performance-based fees | 45,580 | 53,351 | 27,839 | (14.6) | 91.6 | ||||||||||||||||||||||||
586,058 | 511,800 | 478,964 | 14.5 | 6.9 | |||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Base fees | 1,442,178 | 1,186,560 | 1,076,495 | 21.5 | 10.2 | ||||||||||||||||||||||||
Performance-based fees | 50,669 | 24,412 | 22,510 | 107.6 | 8.4 | ||||||||||||||||||||||||
1,492,847 | 1,210,972 | 1,099,005 | 23.3 | 10.2 | |||||||||||||||||||||||||
Private Wealth Management: | |||||||||||||||||||||||||||||
Base fees | 966,749 | 817,801 | 844,809 | 18.2 | (3.2) | ||||||||||||||||||||||||
Performance-based fees | 148,870 | 54,863 | 49,266 | 171.3 | 11.4 | ||||||||||||||||||||||||
1,115,619 | 872,664 | 894,075 | 27.8 | (2.4) | |||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Base fees | 2,949,405 | 2,462,810 | 2,372,429 | 19.8 | 3.8 | ||||||||||||||||||||||||
Performance-based fees | 245,119 | 132,626 | 99,615 | 84.8 | 33.1 | ||||||||||||||||||||||||
3,194,524 | 2,595,436 | 2,472,044 | 23.1 | 5.0 | |||||||||||||||||||||||||
Bernstein Research Services | 452,017 | 459,744 | 407,911 | (1.7) | 12.7 | ||||||||||||||||||||||||
Distribution revenues | 652,240 | 529,781 | 455,043 | 23.1 | 16.4 | ||||||||||||||||||||||||
Dividend and interest income | 38,734 | 50,923 | 104,421 | (23.9) | (51.2) | ||||||||||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | (96.1) | n/m | ||||||||||||||||||||||||
Other revenues | 108,409 | 104,703 | 97,559 | 3.5 | 7.3 | ||||||||||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | 19.4 | 4.2 | ||||||||||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | (76.4) | (72.6) | ||||||||||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | 19.8 | 5.4 | |||||||||||||||||||||
2021 Annual Report |
49
|
50
|
AllianceBernstein |
2021 Annual Report |
51
|
52
|
AllianceBernstein |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Employee compensation and benefits | $ | 1,716,013 | $ | 1,494,198 | $ | 1,442,783 | 14.8 | % | 3.6 | % | |||||||||||||||||||
Promotion and servicing: | |||||||||||||||||||||||||||||
Distribution-related payments | 708,117 | 569,283 | 487,965 | 24.4 | 16.7 | ||||||||||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | 25.6 | 82.0 | ||||||||||||||||||||||||
Trade execution, marketing, T&E and other | 197,486 | 189,787 | 219,860 | 4.1 | (13.7) | ||||||||||||||||||||||||
939,967 | 786,425 | 722,854 | 19.5 | 8.8 | |||||||||||||||||||||||||
General and administrative: | |||||||||||||||||||||||||||||
General and administrative | 555,608 | 485,544 | 484,750 | 14.4 | 0.2 | ||||||||||||||||||||||||
Real estate charges | — | 5,526 | 3,324 | (100.0) | 66.2 | ||||||||||||||||||||||||
555,608 | 491,070 | 488,074 | 13.1 | 0.6 | |||||||||||||||||||||||||
Contingent payment arrangements | 2,710 | 1,855 | (510) | 46.1 | n/m | ||||||||||||||||||||||||
Interest on borrowings | 5,145 | 6,180 | 13,035 | (16.7) | (52.6) | ||||||||||||||||||||||||
Amortization of intangible assets | 5,697 | 21,372 | 28,759 | (73.3) | (25.7) | ||||||||||||||||||||||||
Total | $ | 3,225,140 | $ | 2,801,100 | $ | 2,694,995 | 15.1 | 3.9 |
2021 Annual Report |
53
|
54
|
AllianceBernstein |
2021 Annual Report |
55
|
56
|
AllianceBernstein |
Contingencies | ||
Critical Accounting Estimates | ||
2021 Annual Report |
57
|
58
|
AllianceBernstein |
Market Risk, Risk Management and Derivative Financial Instruments | ||
Investments with Interest Rate Risk—Fair Value | ||
As of December 31 | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Fair Value |
Effect of
+100 Basis Point Change |
Fair Value |
Effect of
+100 Basis Point Change |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Fixed Income Investments: | ||||||||||||||||||||||||||
Trading | $ | 100,661 | $ | (6,976) | $35,555 | $ | (2,457) |
2021 Annual Report |
59
|
Investments with Equity Price Risk—Fair Value
|
||
As of December 31 | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Fair Value |
Effect of
-10% Equity Price Change |
Fair Value |
Effect of
-10% Equity Price Change |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Equity Investments: | ||||||||||||||||||||||||||
Trading | $ | 85,704 | $ | (8,570) | $ | 137,529 | $ | (13,753) | ||||||||||||||||||
Other investments | $ | 87,053 | $ | (8,705) | $ | 80,291 | $ | (8,029) |
60
|
AllianceBernstein |
2021 Annual Report |
61
|
Measurement of Equity in Net Income Attributable to AB Unitholders – Performance-Based Fees
|
||
62
|
AllianceBernstein |
AllianceBernstein Holding L.P. | ||
2021 Annual Report |
63
|
AllianceBernstein Holding L.P. | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Equity in net income attributable to AB Unitholders | $416,326 | $ | 308,404 | $ | 266,292 | |||||||||||||||
Income taxes | 30,483 | 29,024 | 27,729 | |||||||||||||||||
Net income | $385,843 | $ | 279,380 | $ | 238,563 | |||||||||||||||
Net income per unit: | ||||||||||||||||||||
Basic | $3.88 | $ | 2.88 | $ | 2.49 | |||||||||||||||
Diluted | $3.88 | $ | 2.88 | $ | 2.49 |
64
|
AllianceBernstein |
AllianceBernstein Holding L.P. | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net income | $385,843 | $ | 279,380 | $ | 238,563 | |||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Foreign currency translation adjustments, before reclassification and tax | (2,894) | 8,579 | 1,900 | |||||||||||||||||
Less: reclassification adjustment for gains (losses) included in net income upon liquidation | 1,613 | (77) | — | |||||||||||||||||
Foreign currency translation adjustments, before tax | (4,507) | 8,656 | 1,900 | |||||||||||||||||
Income tax benefit (expense) | 147 | (310) | (161) | |||||||||||||||||
Foreign currency translation adjustments, net of tax | (4,360) | 8,346 | 1,739 | |||||||||||||||||
Changes in employee benefit related items: | ||||||||||||||||||||
Amortization of prior service cost | 7 | 8 | 6 | |||||||||||||||||
Recognized actuarial gain (loss) | 5,566 | (1,557) | (3,011) | |||||||||||||||||
Changes in employee benefit related items | 5,573 | (1,549) | (3,005) | |||||||||||||||||
Income tax (expense) benefit | (20) | (67) | 99 | |||||||||||||||||
Employee benefit related items, net of tax | 5,553 | (1,616) | (2,906) | |||||||||||||||||
Other comprehensive income (loss) | 1,193 | 6,730 | (1,167) | |||||||||||||||||
Comprehensive income | $387,036 | $ | 286,110 | $ | 237,396 |
2021 Annual Report |
65
|
AllianceBernstein Holding L.P. | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
General Partner’s Capital | ||||||||||||||||||||
Balance, beginning of year | $ | 1,410 | $ | 1,402 | $ | 1,385 | ||||||||||||||
Net income | 387 | 288 | 249 | |||||||||||||||||
Cash distributions to Unitholders | (358) | (280) | (232) | |||||||||||||||||
Balance, end of year | 1,439 | 1,410 | 1,402 | |||||||||||||||||
Limited Partners’ Capital | ||||||||||||||||||||
Balance, beginning of year | 1,656,816 | 1,619,200 | 1,555,892 | |||||||||||||||||
Net income | 385,456 | 279,092 | 238,314 | |||||||||||||||||
Cash distributions to Unitholders | (357,097) | (270,601) | (222,253) | |||||||||||||||||
Retirement of AB Holding Units | (143,460) | (78,388) | (110,752) | |||||||||||||||||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 151,082 | 107,366 | 146,488 | |||||||||||||||||
Exercise of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 | |||||||||||||||||
Balance, end of year | 1,696,199 | 1,656,816 | 1,619,200 | |||||||||||||||||
AB Holding Units held by AB to fund long-term incentive compensation plans | ||||||||||||||||||||
Balance, beginning of year | (20,171) | (27,436) | (27,759) | |||||||||||||||||
Change in AB Holding Units held by AB to fund long-term incentive compensation plans | (23,138) | 7,265 | 323 | |||||||||||||||||
Balance, end of year | (43,309) | (20,171) | (27,436) | |||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||
Balance, beginning of year | (33,898) | (40,628) | (39,461) | |||||||||||||||||
Foreign currency translation adjustment, net of tax | (4,360) | 8,346 | 1,739 | |||||||||||||||||
Changes in employee benefit related items, net of tax | 5,553 | (1,616) | (2,906) | |||||||||||||||||
Balance, end of year | (32,705) | (33,898) | (40,628) | |||||||||||||||||
Total Partners’ Capital | $ | 1,621,624 | $ | 1,604,157 | $ | 1,552,538 |
66
|
AllianceBernstein |
AllianceBernstein Holding L.P. | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $385,843 | $ | 279,380 | $ | 238,563 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Equity in net income attributable to AB Unitholders | (416,326) | (308,404) | (266,292) | |||||||||||||||||
Cash distributions received from AB | 385,236 | 298,919 | 249,463 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease (increase) in other assets | 92 | (31) | (61) | |||||||||||||||||
Increase in other liabilities | 264 | 150 | 1,082 | |||||||||||||||||
Net cash provided by operating activities | 355,109 | 270,014 | 222,755 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units | (3,402) | (147) | (11,511) | |||||||||||||||||
Net cash used in investing activities | (3,402) | (147) | (11,511) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Cash distributions to Unitholders | (357,455) | (270,881) | (222,485) | |||||||||||||||||
Capital contributions from (to) AB | 2,346 | 867 | (270) | |||||||||||||||||
Proceeds from exercise of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 | |||||||||||||||||
Net cash used in financing activities | (351,707) | (269,867) | (211,244) | |||||||||||||||||
Change in cash and cash equivalents | — | — | — | |||||||||||||||||
Cash and cash equivalents as of beginning of the year | — | — | — | |||||||||||||||||
Cash and cash equivalents as of end of the year | $— | $ | — | $ | — | |||||||||||||||
Cash paid: | ||||||||||||||||||||
Income taxes | 30,127 | 28,906 | 26,650 | |||||||||||||||||
Non-cash investing activities: | ||||||||||||||||||||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 151,082 | 107,366 | 146,488 | |||||||||||||||||
Retirement of AB Holding Units | (143,460) | (78,388) | (110,752) |
2021 Annual Report |
67
|
AllianceBernstein Holding L.P. | ||
68
|
AllianceBernstein |
EQH and its subsidiaries | 63.0 | % | |||
AB Holding | 36.2 | ||||
Unaffiliated holders | 0.8 | ||||
100.0 | % |
2021 Annual Report |
69
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in millions) | ||||||||||||||
Total amount of AB Holding Units Purchased(1)
|
5.6 | 5.4 | ||||||||||||
Total Cash Paid for AB Holding Units Purchased(1)
|
$262.3 | $ | 149.0 | |||||||||||
Open Market Purchases of AB Holding Units Purchased(2)
|
2.6 | 3.1 | ||||||||||||
Total Cash Paid for Open Market Purchases of AB Holding Units(2)
|
$117.9 | $ | 74.0 |
70
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Net income - basic | $385,843 | $ | 279,380 | $ | 238,563 | |||||||||||||||
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options | 30 | 56 | 79 | |||||||||||||||||
Net income - diluted | $385,873 | $ | 279,436 | $ | 238,642 | |||||||||||||||
Weighted average units outstanding - basic | 99,545 | 96,870 | 95,884 | |||||||||||||||||
Dilutive effect of compensatory options | 11 | 27 | 44 | |||||||||||||||||
Weighted average units outstanding - diluted | 99,556 | 96,897 | 95,928 | |||||||||||||||||
Basic net income per unit | $3.88 | $ | 2.88 | $ | 2.49 | |||||||||||||||
Diluted net income per unit | $3.88 | $ | 2.88 | $ | 2.49 |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Anti-dilutive options excluded from diluted net income | — | 29,056 | 29,056 |
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Investment in AB as of January 1, | $ | 1,605,941 | $ | 1,554,203 | ||||||||||
Equity in net income attributable to AB Unitholders | 416,326 | 308,404 | ||||||||||||
Changes in accumulated other comprehensive income | 1,193 | 6,730 | ||||||||||||
Cash distributions received from AB | (385,236) | (298,919) | ||||||||||||
Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units | 3,402 | 147 | ||||||||||||
Capital contributions (from) AB | (2,346) | (867) | ||||||||||||
AB Holding Units retired | (143,460) | (78,388) | ||||||||||||
AB Holding Units issued to fund long-term incentive compensation plans | 151,082 | 107,366 | ||||||||||||
Change in AB Holding Units held by AB for long-term incentive compensation plans | (23,138) | 7,265 | ||||||||||||
Investment in AB as of December 31, | $ | 1,623,764 | $ | 1,605,941 |
2021 Annual Report |
71
|
2021 | 2020 | |||||||||||||
Outstanding as of January 1, | 98,322,942 | 98,192,098 | ||||||||||||
Options exercised | 143,211 | 5,182 | ||||||||||||
Units issued | 3,917,437 | 3,363,132 | ||||||||||||
Units retired | (3,111,863) | (3,237,470) | ||||||||||||
Outstanding as of December 31, | 99,271,727 | 98,322,942 |
Years Ended December 31 | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
UBT statutory rate | $16,653 | 4.0 | % | $ | 12,336 | 4.0 | % | $ | 10,652 | 4.0 | % | |||||||||||||||||||||||||||
Federal tax on partnership gross business income | 29,643 | 7.1 | 28,522 | 9.2 | 27,197 | 10.2 | ||||||||||||||||||||||||||||||||
State income taxes | 840 | 0.2 | 502 | 0.2 | 532 | 0.2 | ||||||||||||||||||||||||||||||||
Credit for UBT paid by AB | (16,653) | (4.0) | (12,336) | (4.0) | (10,652) | (4.0) | ||||||||||||||||||||||||||||||||
Income tax expense and effective tax rate | $30,483 | 7.3 | $ | 29,024 | 9.4 | $ | 27,729 | 10.4 |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | 32.6 | % | 15.1 | % | |||||||||||||||||||
Multiplied by: weighted average equity ownership interest | 36.2 | % | 35.6 | % | 35.4 | % | |||||||||||||||||||||||
Equity in net income attributable to AB Unitholders | $ | 416,326 | $ | 308,404 | $ | 266,292 | 35.0 | 15.8 | |||||||||||||||||||||
AB qualifying revenues | $ | 2,779,281 | $ | 2,740,137 | $ | 2,640,169 | 1.4 | 2.4 | |||||||||||||||||||||
Multiplied by: weighted average equity ownership interest for calculating tax | 30.5 | % | 30.1 | % | 29.4 | % | |||||||||||||||||||||||
Multiplied by: federal tax | 3.5 | % | 3.5 | % | 3.5 | % | |||||||||||||||||||||||
Federal income taxes | 29,643 | 28,522 | 27,197 | ||||||||||||||||||||||||||
State income taxes | 840 | 502 | 532 | ||||||||||||||||||||||||||
Total income taxes | $ | 30,483 | $ | 29,024 | $ | 27,729 | 5.0 | 4.7 |
72
|
AllianceBernstein |
2021 Annual Report |
73
|
74
|
AllianceBernstein |
Performance-Based Fees
|
||
2021 Annual Report |
75
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands,
except unit amounts) |
||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 1,285,700 | $ | 1,037,400 | ||||||||||
Cash and securities segregated, at fair value (cost $1,503,554 and $1,752,483) | 1,503,957 | 1,753,478 | ||||||||||||
Receivables, net: | ||||||||||||||
Brokers and dealers | 65,897 | 92,638 | ||||||||||||
Brokerage clients | 2,059,842 | 1,713,377 | ||||||||||||
AB funds fees | 340,158 | 325,407 | ||||||||||||
Other fees | 185,653 | 148,746 | ||||||||||||
Investments: | ||||||||||||||
Long-term incentive compensation-related | 63,839 | 60,114 | ||||||||||||
Other | 209,579 | 193,261 | ||||||||||||
Assets of consolidated company-sponsored investment funds: | ||||||||||||||
Cash and cash equivalents | 90,326 | 36,506 | ||||||||||||
Investments | 613,025 | 302,582 | ||||||||||||
Other assets | 30,461 | 12,244 | ||||||||||||
Furniture, equipment and leasehold improvements, net | 169,175 | 147,874 | ||||||||||||
Goodwill | 3,091,763 | 3,082,778 | ||||||||||||
Intangible assets, net | 41,531 | 44,496 | ||||||||||||
Deferred sales commissions, net | 74,899 | 64,066 | ||||||||||||
Right-of-use assets | 421,980 | 418,455 | ||||||||||||
Other assets | 262,303 | 264,418 | ||||||||||||
Total assets | $ | 10,510,088 | $ | 9,697,840 | ||||||||||
76
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands,
except unit amounts) |
||||||||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND CAPITAL | ||||||||||||||
Liabilities: | ||||||||||||||
Payables: | ||||||||||||||
Brokers and dealers | $ | 265,957 | $ | 216,403 | ||||||||||
Securities sold not yet purchased | 3,828 | 17,791 | ||||||||||||
Brokerage clients | 3,603,558 | 3,440,266 | ||||||||||||
AB mutual funds | 94,962 | 65,550 | ||||||||||||
Accounts payable and accrued expenses | 257,307 | 197,657 | ||||||||||||
Lease liabilities | 490,735 | 505,549 | ||||||||||||
Liabilities of consolidated company-sponsored investment funds | 87,000 | 30,620 | ||||||||||||
Accrued compensation and benefits | 369,649 | 335,122 | ||||||||||||
Debt | 755,000 | 675,000 | ||||||||||||
Total liabilities | 5,927,996 | 5,483,958 | ||||||||||||
Commitments and contingencies (See Note 14)
|
||||||||||||||
Redeemable non-controlling interest | 421,169 | 102,359 | ||||||||||||
Capital: | ||||||||||||||
General Partner | 42,850 | 41,776 | ||||||||||||
Limited partners: 271,453,043 and 270,509,658 units issued and outstanding | 4,336,211 | 4,229,485 | ||||||||||||
Receivables from affiliates | (8,333) | (8,316) | ||||||||||||
AB Holding Units held for long-term incentive compensation plans | (119,470) | (57,219) | ||||||||||||
Accumulated other comprehensive loss | (90,335) | (94,203) | ||||||||||||
Partners’ capital attributable to AB Unitholders | 4,160,923 | 4,111,523 | ||||||||||||
Total liabilities, redeemable non-controlling interest and capital | $ | 10,510,088 | $ | 9,697,840 |
2021 Annual Report |
77
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Investment advisory and services fees | $ | 3,194,524 | $ | 2,595,436 | $ | 2,472,044 | ||||||||||||||
Bernstein research services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Distribution revenues | 652,240 | 529,781 | 455,043 | |||||||||||||||||
Dividend and interest income | 38,734 | 50,923 | 104,421 | |||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | |||||||||||||||||
Other revenues | 108,409 | 104,703 | 97,559 | |||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | |||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | |||||||||||||||||
Net revenues | 4,441,602 | 3,708,536 | 3,518,432 | |||||||||||||||||
Expenses: | ||||||||||||||||||||
Employee compensation and benefits | 1,716,013 | 1,494,198 | 1,442,783 | |||||||||||||||||
Promotion and servicing: | ||||||||||||||||||||
Distribution-related payments | 708,117 | 569,283 | 487,965 | |||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | |||||||||||||||||
Trade execution, marketing, T&E and other | 197,486 | 189,787 | 219,860 | |||||||||||||||||
General and administrative: | ||||||||||||||||||||
General and administrative | 555,608 | 485,544 | 484,750 | |||||||||||||||||
Real estate charges | — | 5,526 | 3,324 | |||||||||||||||||
Contingent payment arrangements | 2,710 | 1,855 | (510) | |||||||||||||||||
Interest on borrowings | 5,145 | 6,180 | 13,035 | |||||||||||||||||
Amortization of intangible assets | 5,697 | 21,372 | 28,759 | |||||||||||||||||
Total expenses | 3,225,140 | 2,801,100 | 2,694,995 | |||||||||||||||||
Operating income | 1,216,462 | 907,436 | 823,437 | |||||||||||||||||
Income tax | 62,728 | 45,653 | 41,754 | |||||||||||||||||
Net income | 1,153,734 | 861,783 | 781,683 | |||||||||||||||||
Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | |||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | ||||||||||||||
Net income per AB Unit: | ||||||||||||||||||||
Basic | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Diluted | $ | 4.18 | $ | 3.19 | $ | 2.78 |
78
|
AllianceBernstein |
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net income | $ | 1,153,734 | $ | 861,783 | $ | 781,683 | ||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments, before reclassification and tax: | (7,839) | 23,882 | 5,986 | |||||||||||||||||
Less: reclassification adjustment for gains (losses) included in net income upon liquidation | 4,458 | (216) | — | |||||||||||||||||
Foreign currency translation adjustments, before tax | (12,297) | 24,098 | 5,986 | |||||||||||||||||
Income tax benefit (expense) | 457 | (854) | (383) | |||||||||||||||||
Foreign currency translation adjustments, net of tax | (11,840) | 23,244 | 5,603 | |||||||||||||||||
Changes in employee benefit related items: | ||||||||||||||||||||
Amortization of prior service cost | 24 | 24 | 24 | |||||||||||||||||
Recognized actuarial gain (loss) | 15,743 | (4,280) | (7,891) | |||||||||||||||||
Changes in employee benefit related items | 15,767 | (4,256) | (7,867) | |||||||||||||||||
Income tax (expense) benefit | (59) | (187) | 274 | |||||||||||||||||
Employee benefit related items, net of tax | 15,708 | (4,443) | (7,593) | |||||||||||||||||
Other comprehensive gain (loss) | 3,868 | 18,801 | (1,990) | |||||||||||||||||
Less: Comprehensive income (loss) in consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,788 | |||||||||||||||||
Comprehensive income attributable to AB Unitholders | $ | 1,152,491 | $ | 884,753 | $ | 749,905 |
2021 Annual Report |
79
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
General Partner’s Capital | ||||||||||||||||||||
Balance, beginning of year | $ | 41,776 | $ | 41,225 | $ | 40,240 | ||||||||||||||
Net income | 11,486 | 8,660 | 7,521 | |||||||||||||||||
Cash distributions to General Partner | (10,605) | (8,376) | (7,042) | |||||||||||||||||
Long-term incentive compensation plans activity | 117 | (23) | 149 | |||||||||||||||||
Issuance of AB Units, net | 76 | 290 | 357 | |||||||||||||||||
Balance, end of year | 42,850 | 41,776 | 41,225 | |||||||||||||||||
Limited Partners' Capital | ||||||||||||||||||||
Balance, beginning of year | 4,229,485 | 4,174,201 | 4,075,306 | |||||||||||||||||
Net income | 1,137,137 | 857,292 | 744,521 | |||||||||||||||||
Cash distributions to Unitholders | (1,049,287) | (828,503) | (696,470) | |||||||||||||||||
Long-term incentive compensation plans activity | 11,586 | (2,147) | 14,741 | |||||||||||||||||
Issuance of AB Units, net | 7,290 | 28,642 | 35,259 | |||||||||||||||||
Other | — | — | 844 | |||||||||||||||||
Balance, end of year | 4,336,211 | 4,229,485 | 4,174,201 | |||||||||||||||||
Receivables from Affiliates | ||||||||||||||||||||
Balance, beginning of year | (8,316) | (9,011) | (11,430) | |||||||||||||||||
Long-term incentive compensation awards expense | 941 | 802 | 1,125 | |||||||||||||||||
Capital contributions from AB Holding | (958) | (107) | 1,294 | |||||||||||||||||
Balance, end of year | (8,333) | (8,316) | (9,011) | |||||||||||||||||
AB Holding Units held for Long-term Incentive Compensation Plans | ||||||||||||||||||||
Balance, beginning of year | (57,219) | (76,310) | (77,990) | |||||||||||||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (261,825) | (148,624) | (171,930) | |||||||||||||||||
(Issuance) of AB Units, net | (7,348) | (28,696) | (35,736) | |||||||||||||||||
Long-term incentive compensation awards expense | 215,484 | 194,840 | 207,057 | |||||||||||||||||
Re-valuation of AB Holding Units held in rabbi trust | (9,690) | 1,556 | (4,403) | |||||||||||||||||
Other | 1,128 | 15 | 6,692 | |||||||||||||||||
Balance, end of year | (119,470) | (57,219) | (76,310) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance, beginning of year | (94,203) | (113,004) | (110,866) | |||||||||||||||||
Foreign currency translation adjustment, net of tax | (11,840) | 23,244 | 5,455 | |||||||||||||||||
Changes in employee benefit related items, net of tax | 15,708 | (4,443) | (7,593) | |||||||||||||||||
Balance, end of year | (90,335) | (94,203) | (113,004) | |||||||||||||||||
Total Partners' Capital attributable to AB Unitholders | 4,160,923 | 4,111,523 | 4,017,101 | |||||||||||||||||
Non-redeemable Non-controlling Interests in Consolidated Entities | ||||||||||||||||||||
Balance, beginning of year | — | — | 949 | |||||||||||||||||
Net income | — | — | 91 | |||||||||||||||||
Foreign currency translation adjustment | — | — | 147 | |||||||||||||||||
Purchase of non-controlling interest | — | — | (1,187) | |||||||||||||||||
Balance, end of year | — | — | — | |||||||||||||||||
Total Capital | $ | 4,160,923 | $ | 4,111,523 | $ | 4,017,101 |
2021 Annual Report |
80
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 1,153,734 | $ | 861,783 | $ | 781,683 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | |||||||||||||||||
Non-cash long-term incentive compensation expense | 216,425 | 195,642 | 208,182 | |||||||||||||||||
Depreciation and other amortization | 44,985 | 61,028 | 77,021 | |||||||||||||||||
Unrealized losses (gains) on investments | 4,454 | 10,405 | (13,431) | |||||||||||||||||
Unrealized losses (gains) on investments of consolidated company-sponsored investment funds | 1,882 | (854) | (36,150) | |||||||||||||||||
Non-cash lease expense | 98,773 | 98,798 | 103,773 | |||||||||||||||||
Other, net | 22,580 | (2,914) | 10,281 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease (increase) in securities, segregated | 249,521 | (658,612) | 74,688 | |||||||||||||||||
(Increase) decrease in receivables | (360,789) | (182,684) | 223,137 | |||||||||||||||||
(Increase) decrease in investments | (27,000) | 7,597 | 460,347 | |||||||||||||||||
(Increase) decrease in investments of consolidated company-sponsored investment funds | (312,325) | 279,276 | (193,158) | |||||||||||||||||
(Increase) in deferred sales commissions | (45,197) | (55,125) | (34,177) | |||||||||||||||||
(Increase) decrease in other assets | (6,578) | 69,160 | (23,140) | |||||||||||||||||
Decrease in other assets and liabilities of consolidated company-sponsored investment funds, net | 38,161 | 7,169 | 11,437 | |||||||||||||||||
Increase (decrease) in payables | 214,139 | 861,502 | (641,369) | |||||||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 35,877 | 10,666 | (56,518) | |||||||||||||||||
Increase (decrease) in accrued compensation and benefits | 50,545 | 46,885 | (7,486) | |||||||||||||||||
Cash payments to relieve operating lease liabilities | (114,769) | (115,656) | (132,669) | |||||||||||||||||
Net cash provided by operating activities | 1,298,782 | 1,521,421 | 827,480 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of equity method investments | — | (4,079) | — | |||||||||||||||||
Purchases of furniture, equipment and leasehold improvements | (61,931) | (41,504) | (28,303) | |||||||||||||||||
Acquisition of businesses, net of cash acquired | (3,793) | (13,552) | 5,255 | |||||||||||||||||
Net cash used in investing activities | (65,724) | (59,135) | (23,048) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt, net | 80,000 | 115,000 | 2,105 | |||||||||||||||||
Increase (decrease) in overdrafts payable | 16,192 | (12,633) | (59,924) | |||||||||||||||||
Distributions to General Partner and Unitholders | (1,059,892) | (836,879) | (703,512) | |||||||||||||||||
Subscriptions (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, net | 313,699 | (219,033) | 150,091 | |||||||||||||||||
Capital contributions (to) from affiliates | (2,346) | (867) | 269 | |||||||||||||||||
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 | |||||||||||||||||
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (261,825) | (148,624) | (171,930) | |||||||||||||||||
Other, net | (2,186) | 306 | (3,571) | |||||||||||||||||
Net cash used in financing activities | (912,956) | (1,102,583) | (774,961) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (17,982) | 23,032 | 8,376 | |||||||||||||||||
Net increase in cash and cash equivalents | 302,120 | 382,735 | 37,847 | |||||||||||||||||
Cash and cash equivalents as of beginning of the period | 1,073,906 | 691,171 | 653,324 | |||||||||||||||||
Cash and cash equivalents as of end of the period | $ | 1,376,026 | $ | 1,073,906 | $ | 691,171 | ||||||||||||||
Cash paid: | ||||||||||||||||||||
Interest paid | $ | 5,263 | $ | 18,858 | $ | 66,002 | ||||||||||||||
Income taxes paid | 55,656 | 59,791 | 52,444 | |||||||||||||||||
Non-cash investing activities: | ||||||||||||||||||||
Fair value of assets acquired (excluding cash acquired of $2.8 million, $0.6 million and $11.8 million, for 2021, 2020 and 2019, respectively) | 13,235 | 18,389 | 28,966 | |||||||||||||||||
Fair value of liabilities assumed | 1,642 | 437 | 16,837 | |||||||||||||||||
Non-cash financing activities: | ||||||||||||||||||||
Payables recorded under contingent payment arrangements | 7,800 | 4,400 | 17,384 |
2021 Annual Report |
81
|
AllianceBernstein L.P. and Subsidiaries | ||
82
|
AllianceBernstein |
EQH and its subsidiaries | 63.0 | % | |||
AB Holding | 36.2 | ||||
Unaffiliated holders | 0.8 | ||||
100.0 | % |
Investment advisory and services fees
|
||
2021 Annual Report |
83
|
Bernstein Research Services
|
||
Distribution Revenues
|
||
84
|
AllianceBernstein |
Other Revenues
|
||
Non-Contractual Revenues
|
||
Contract Assets and Liabilities
|
||
2021 Annual Report |
85
|
86
|
AllianceBernstein |
2021 Annual Report |
87
|
88
|
AllianceBernstein |
2021 Annual Report |
89
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in millions) | ||||||||||||||
Total amount of AB Holding Units Purchased(1)
|
5.6 | 5.4 | ||||||||||||
Total Cash Paid for AB Holding Units Purchased(1)
|
$ | 262.3 | $ | 149.0 | ||||||||||
Open Market Purchases of AB Holding Units Purchased(2)
|
2.6 | 3.1 | ||||||||||||
Total Cash Paid for Open Market Purchases of AB Holding Units(2)
|
$ | 117.9 | $ | 74.0 |
90
|
AllianceBernstein |
2021 Annual Report |
91
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Subject to contracts with customers: | ||||||||||||||||||||
Investment advisory and services fees | ||||||||||||||||||||
Base fees | $ | 2,949,405 | $ | 2,462,810 | $ | 2,372,429 | ||||||||||||||
Performance-based fees | 245,119 | 132,626 | 99,615 | |||||||||||||||||
Bernstein research services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Distribution revenues | ||||||||||||||||||||
All-in-management fees | 350,674 | 331,268 | 291,999 | |||||||||||||||||
12b-1 fees | 83,920 | 75,973 | 80,268 | |||||||||||||||||
Other distribution fees | 217,646 | 122,540 | 82,776 | |||||||||||||||||
Other revenues | ||||||||||||||||||||
Shareholder servicing fees | 90,225 | 82,317 | 77,394 | |||||||||||||||||
Other | 16,034 | 21,240 | 17,924 | |||||||||||||||||
4,405,040 | 3,688,518 | 3,430,316 | ||||||||||||||||||
Not subject to contracts with customers: | ||||||||||||||||||||
Dividend and interest income, net of interest expense | 35,048 | 35,273 | 47,216 | |||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | |||||||||||||||||
Other revenues | 2,150 | 1,146 | 2,241 | |||||||||||||||||
36,562 | 20,018 | 88,116 | ||||||||||||||||||
Total net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | ||||||||||||||
Weighted average units outstanding—basic | 271,729 | 269,058 | 268,075 | |||||||||||||||||
Dilutive effect of compensatory options to buy AB Holding Units | 11 | 27 | 44 | |||||||||||||||||
Weighted average units outstanding—diluted | 271,740 | 269,085 | 268,119 | |||||||||||||||||
Basic net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Diluted net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 |
Years Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Anti-dilutive options excluded from diluted net income | — | 29,056 | 29,056 |
92
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Equity securities: | ||||||||||||||
Long-term incentive compensation-related | $ | 32,237 | $ | 34,351 | ||||||||||
Seed capital | 133,992 | 75,766 | ||||||||||||
Other | 18,243 | 55,439 | ||||||||||||
Exchange-traded options | 1,893 | 7,527 | ||||||||||||
Investments in limited partnership hedge funds: | ||||||||||||||
Long-term incentive compensation-related | 31,602 | 25,762 | ||||||||||||
Seed capital | 19,318 | 16,646 | ||||||||||||
Time deposits | 21,024 | 18,602 | ||||||||||||
Other | 15,109 | 19,282 | ||||||||||||
Total investments | $ | 273,418 | $ | 253,375 |
2021 Annual Report |
93
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Net gains recognized during the period | $ | 19,240 | $ | 17,927 | ||||||||||
Less: net gains recognized during the period on equity securities sold during the period | 23,697 | 27,357 | ||||||||||||
Unrealized losses recognized during the period on equity securities held | $ | (4,457) | $ | (9,430) |
Notional
Value |
Derivative
Assets |
Derivative
Liabilities |
Gains
(Losses) |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Exchange-traded futures | $ | 131,876 | $ | 392 | $ | 1,186 | $ | (5,072) | ||||||||||||||||||
Currency forwards | 66,058 | 7,344 | 6,980 | 1,746 | ||||||||||||||||||||||
Interest rate swaps | 13,483 | 497 | 833 | (316) | ||||||||||||||||||||||
Credit default swaps | 155,757 | 6,594 | 6,967 | (2,914) | ||||||||||||||||||||||
Total return swaps | 63,817 | 595 | 527 | (6,433) | ||||||||||||||||||||||
Option swaps | 50,000 | — | 430 | (309) | ||||||||||||||||||||||
Total derivatives | $ | 480,991 | $ | 15,422 | $ | 16,923 | $ | (13,298) | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Exchange-traded futures | $ | 142,886 | $ | 118 | $ | 1,834 | $ | (15,743) | ||||||||||||||||||
Currency forwards | 63,906 | 8,576 | 8,451 | (1,779) | ||||||||||||||||||||||
Interest rate swaps | 60,997 | 2,043 | 2,955 | (347) | ||||||||||||||||||||||
Credit default swaps | 167,649 | 10,910 | 13,304 | (104) | ||||||||||||||||||||||
Total return swaps | 52,061 | 94 | 1,847 | (15,242) | ||||||||||||||||||||||
Option swaps | 2,486 | — | 2,146 | (2,374) | ||||||||||||||||||||||
Total derivatives | $ | 489,985 | $ | 21,741 | $ | 30,537 | $ | (35,589) |
94
|
AllianceBernstein |
Gross
Amounts of Recognized Assets |
Gross
Amounts Offset in the Statement of Financial Condition |
Net
Amounts of Assets Presented in the Statement of Financial Condition |
Financial
Instruments Collateral |
Cash Collateral
Received |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Securities borrowed | $ | 19,899 | $ | — | $ | 19,899 | $ | (18,327) | $ | — | $ | 1,572 | ||||||||||||||||||||||||||
Derivatives | $ | 15,422 | $ | — | $ | 15,422 | $ | — | $ | (2,872) | $ | 12,550 | ||||||||||||||||||||||||||
Long exchange-traded options | $ | 1,893 | $ | — | $ | 1,893 | $ | — | $ | — | $ | 1,893 | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Securities borrowed | $ | 7,808 | $ | — | $ | 7,808 | $ | (7,344) | $ | — | $ | 464 | ||||||||||||||||||||||||||
Derivatives | $ | 21,741 | $ | — | $ | 21,741 | $ | — | $ | (380) | $ | 21,361 | ||||||||||||||||||||||||||
Long exchange-traded options | $ | 7,527 | $ | — | $ | 7,527 | $ | — | $ | — | $ | 7,527 |
2021 Annual Report |
95
|
Gross
Amounts of Recognized Liabilities |
Gross
Amounts Offset in the Statement of Financial Condition |
Net
Amounts of Liabilities Presented in the Statement of Financial Condition |
Financial
Instruments Collateral |
Cash Collateral
Pledged |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Securities loaned | $ | 23,911 | $ | — | $ | 23,911 | $ | (23,373) | $ | — | $ | 538 | ||||||||||||||||||||||||||
Derivatives | $ | 16,923 | $ | — | $ | 16,923 | $ | — | $ | (5,572) | $ | 11,351 | ||||||||||||||||||||||||||
Short exchange-traded options | $ | 2,774 | $ | — | $ | 2,774 | $ | — | $ | — | $ | 2,774 | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 30,537 | $ | — | $ | 30,537 | $ | — | $ | (6,374) | $ | 24,163 | ||||||||||||||||||||||||||
Short exchange-traded options | $ | 12,486 | $ | — | $ | 12,486 | $ | — | $ | — | $ | 12,486 |
96
|
AllianceBernstein |
Level 1 | Level 2 | Level 3 |
NAV Expedient(1)
|
Other | Total | |||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Money markets | $ | 151,156 | $ | — | $ | — | $ | — | $ | — | $ | 151,156 | ||||||||||||||||||||||||||
Securities segregated (U.S. Treasury Bills) | — | 1,503,828 | — | — | — | 1,503,828 | ||||||||||||||||||||||||||||||||
Derivatives | 392 | 15,030 | — | — | — | 15,422 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 144,917 | 39,284 | 126 | 145 | — | 184,472 | ||||||||||||||||||||||||||||||||
Long exchange-traded options | 1,893 | — | — | — | — | 1,893 | ||||||||||||||||||||||||||||||||
Limited partnership hedge funds(2)
|
— | — | — | — | 50,920 | 50,920 | ||||||||||||||||||||||||||||||||
Time deposits(3)
|
— | — | — | — | 21,024 | 21,024 | ||||||||||||||||||||||||||||||||
Other investments | 9,094 | — | — | — | 6,015 | 15,109 | ||||||||||||||||||||||||||||||||
Total investments | 155,904 | 39,284 | 126 | 145 | 77,959 | 273,418 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 307,452 | $ | 1,558,142 | $ | 126 | $ | 145 | $ | 77,959 | $ | 1,943,824 | ||||||||||||||||||||||||||
Securities sold not yet purchased: | ||||||||||||||||||||||||||||||||||||||
Short equities – corporate | $ | 1,054 | $ | — | $ | — | $ | — | $ | — | $ | 1,054 | ||||||||||||||||||||||||||
Short exchange-traded options | 2,774 | — | — | — | — | 2,774 | ||||||||||||||||||||||||||||||||
Derivatives | 1,186 | 15,737 | — | — | — | 16,923 | ||||||||||||||||||||||||||||||||
Contingent payment arrangements | — | — | 38,260 | — | — | 38,260 | ||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 5,014 | $ | 15,737 | $ | 38,260 | $ | — | $ | — | $ | 59,011 | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Money markets | $ | 130,675 | $ | — | $ | — | $ | — | $ | — | $ | 130,675 | ||||||||||||||||||||||||||
Securities segregated (U.S. Treasury Bills) | — | 1,752,906 | — | — | — | 1,752,906 | ||||||||||||||||||||||||||||||||
Derivatives | 118 | 21,623 | — | — | — | 21,741 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 147,705 | 17,565 | 125 | 161 | — | 165,556 | ||||||||||||||||||||||||||||||||
Long exchange-traded options | 7,527 | — | — | — | — | 7,527 | ||||||||||||||||||||||||||||||||
Limited partnership hedge funds(2)
|
— | — | — | — | 42,408 | 42,408 | ||||||||||||||||||||||||||||||||
Time deposits(3)
|
— | — | — | — | 18,602 | 18,602 | ||||||||||||||||||||||||||||||||
Other investments | 7,011 | — | — | — | 12,271 | 19,282 | ||||||||||||||||||||||||||||||||
Total investments | 162,243 | 17,565 | 125 | 161 | 73,281 | 253,375 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 293,036 | $ | 1,792,094 | $ | 125 | $ | 161 | $ | 73,281 | $ | 2,158,697 | ||||||||||||||||||||||||||
Securities sold not yet purchased: | ||||||||||||||||||||||||||||||||||||||
Short equities – corporate | $ | 5,305 | $ | — | $ | — | $ | — | $ | — | $ | 5,305 | ||||||||||||||||||||||||||
Short exchange-traded options | 12,486 | — | — | — | — | 12,486 | ||||||||||||||||||||||||||||||||
Derivatives | 1,834 | 28,703 | — | — | — | 30,537 | ||||||||||||||||||||||||||||||||
Contingent payment arrangements | — | — | 27,750 | — | — | 27,750 | ||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 19,625 | $ | 28,703 | $ | 27,750 | $ | — | $ | — | $ | 76,078 |
2021 Annual Report |
97
|
December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 125 | $ | 119 | ||||||||||
Purchases | — | — | ||||||||||||
Sales | — | — | ||||||||||||
Realized gains (losses), net | — | — | ||||||||||||
Unrealized gains (losses), net | 1 | 6 | ||||||||||||
Balance as of end of period | $ | 126 | $ | 125 |
98
|
AllianceBernstein |
December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 27,750 | $ | 22,911 | ||||||||||
Addition | 7,800 | 4,400 | ||||||||||||
Accretion | 3,310 | 3,105 | ||||||||||||
Changes in estimates | (600) | (1,366) | ||||||||||||
Payments | — | (1,300) | ||||||||||||
Balance as of end of period | $ | 38,260 | $ | 27,750 |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Furniture and equipment | $ | 584,161 | $ | 556,966 | ||||||||||
Leasehold improvements | 301,036 | 284,080 | ||||||||||||
Total | 885,197 | 841,046 | ||||||||||||
Less: Accumulated depreciation and amortization | (716,022) | (693,172) | ||||||||||||
Furniture, equipment and leasehold improvements, net | $ | 169,175 | $ | 147,874 |
2021 Annual Report |
99
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Carrying amount of deferred sales commissions | $ | 177,233 | $ | 116,484 | ||||||||||
Less: Accumulated amortization | (53,976) | (30,001) | ||||||||||||
Cumulative CDSC received | (48,358) | (22,417) | ||||||||||||
Deferred sales commissions, net | $ | 74,899 | $ | 64,066 |
2022 | $ | 35,349 | |||
2023 | 26,176 | ||||
2024 | 12,676 | ||||
2025 | 698 | ||||
Total | $ | 74,899 |
100
|
AllianceBernstein |
2021 Annual Report |
101
|
Classification | December 31, 2021 | December 31, 2020 | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating Leases | |||||||||||||||||
Operating lease right-of-use assets | Right-of-use assets | $ | 414,105 | $ | 416,007 | ||||||||||||
Operating lease liabilities | Lease liabilities | 482,781 | 503,174 | ||||||||||||||
Finance Leases | |||||||||||||||||
Property and equipment, gross | Right-of-use assets | 10,947 | 5,167 | ||||||||||||||
Amortization of right-of-use assets | Right-of-use assets | (3,072) | (2,719) | ||||||||||||||
Property and equipment, net | 7,875 | 2,448 | |||||||||||||||
Finance lease liabilities | Lease liabilities | 7,954 | 2,375 |
Years Ended December 31 | |||||||||||||||||||||||||||||
Classification | 2021 | 2020 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Operating lease cost | General and administrative | $ | 97,466 | $ | 90,212 | ||||||||||||||||||||||||
Financing lease cost: | |||||||||||||||||||||||||||||
Amortization of right-of-use assets | General and administrative | 2,355 | 1,755 | ||||||||||||||||||||||||||
Interest on lease liabilities | Interest expense | 107 | 86 | ||||||||||||||||||||||||||
Total finance lease cost | 2,462 | 1,841 | |||||||||||||||||||||||||||
Variable lease cost (1)
|
General and administrative | 39,827 | 38,208 | ||||||||||||||||||||||||||
Sublease income | General and administrative | (37,317) | (38,622) | ||||||||||||||||||||||||||
Net lease cost | $ | 102,438 | $ | 91,639 |
Operating Leases | Financing Leases | Total | ||||||||||||||||||
Year ending December 31, | (in thousands) | |||||||||||||||||||
2022 | $ | 100,604 | $ | 2,616 | $ | 103,220 | ||||||||||||||
2023 | 97,049 | 2,354 | 99,403 | |||||||||||||||||
2024 | 99,259 | 1,510 | 100,769 | |||||||||||||||||
2025 | 33,060 | 1,214 | 34,274 | |||||||||||||||||
2026 | 32,047 | 478 | 32,525 | |||||||||||||||||
Thereafter | 169,074 | — | 169,074 | |||||||||||||||||
Total lease payments | 531,093 | 8,172 | $ | 539,265 | ||||||||||||||||
Less interest | (48,312) | (218) | ||||||||||||||||||
Present value of lease liabilities | $ | 482,781 | $ | 7,954 |
102
|
AllianceBernstein |
Lease term and discount rate: | |||||
Weighted average remaining lease term (years): | |||||
Operating leases | 7.57 | ||||
Finance leases | 3.62 | ||||
Weighted average discount rate: | |||||
Operating leases | 2.77 | % | |||
Finance leases | 1.60 | % |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Right-of-use assets obtained in exchange for lease obligations(1):
|
||||||||||||||
Operating leases | $ | 82,379 | $ | 135,919 | ||||||||||
Finance leases | 7,782 | 1,695 |
Payments | Sublease Receipts | Net Payments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
2022 | $ | 107.1 | $ | (31.2) | $ | 75.9 | ||||||||||||||
2023 | 99.4 | (31.6) | $ | 67.8 | ||||||||||||||||
2024 | 100.7 | (30.7) | $ | 70.0 | ||||||||||||||||
2025 | 51.6 | — | $ | 51.6 | ||||||||||||||||
2026 | 49.9 | — | $ | 49.9 | ||||||||||||||||
2027 and thereafter
|
528.3 | — | 528.3 | |||||||||||||||||
Total future minimum payments | $ | 937.0 | $ | (93.5) | $ | 843.5 |
2021 Annual Report |
103
|
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
VIEs | VOEs | Total | VIEs | VOEs | Total | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 90,326 | $ | — | $ | 90,326 | $ | 36,370 | $ | 136 | $ | 36,506 | |||||||||||||||||||||||||||||
Investments | 613,025 | — | 613,025 | 242,541 | 60,041 | 302,582 | |||||||||||||||||||||||||||||||||||
Other assets | 30,461 | — | 30,461 | 4,859 | 7,385 | 12,244 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 733,812 | $ | — | $ | 733,812 | $ | 283,770 | $ | 67,562 | $ | 351,332 | |||||||||||||||||||||||||||||
Liabilities | $ | 87,000 | $ | — | $ | 87,000 | $ | 7,741 | $ | 22,879 | $ | 30,620 | |||||||||||||||||||||||||||||
Redeemable non-controlling interest | 421,169 | — | 421,169 | 82,753 | 19,606 | 102,359 | |||||||||||||||||||||||||||||||||||
Partners' capital attributable to AB Unitholders | 225,643 | — | 225,643 | 193,276 | 25,077 | 218,353 | |||||||||||||||||||||||||||||||||||
Total liabilities, redeemable non-controlling interest and partners' capital | $ | 733,812 | $ | — | $ | 733,812 | $ | 283,770 | $ | 67,562 | $ | 351,332 | |||||||||||||||||||||||||||||
104
|
AllianceBernstein |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
Investments - VIEs | $ | 165,415 | $ | 444,253 | $ | 3,357 | $ | 613,025 | ||||||||||||||||||||||||
Investments - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Derivatives - VIEs | 622 | 5,265 | — | 5,887 | ||||||||||||||||||||||||||||
Derivatives - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 166,037 | $ | 449,518 | $ | 3,357 | $ | 618,912 | ||||||||||||||||||||||||
Derivatives - VIEs | $ | 16,291 | $ | 2,051 | $ | — | $ | 18,342 | ||||||||||||||||||||||||
Derivatives - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 16,291 | $ | 2,051 | $ | — | $ | 18,342 | ||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||
Investments - VIEs | $ | 73,909 | $ | 168,114 | $ | 518 | $ | 242,541 | ||||||||||||||||||||||||
Investments - VOEs | — | 59,940 | 101 | 60,041 | ||||||||||||||||||||||||||||
Derivatives - VIEs | 442 | 2,782 | — | 3,224 | ||||||||||||||||||||||||||||
Derivatives - VOEs | — | 464 | — | 464 | ||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 74,351 | $ | 231,300 | $ | 619 | $ | 306,270 | ||||||||||||||||||||||||
Derivatives - VIEs | $ | 1,649 | $ | 5,244 | $ | — | $ | 6,893 | ||||||||||||||||||||||||
Derivatives - VOEs | — | 664 | — | 664 | ||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 1,649 | $ | 5,908 | $ | — | $ | 7,557 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 619 | $ | 854 | ||||||||||
Deconsolidated funds | (717) | (135) | ||||||||||||
Transfers (out) in | (205) | 552 | ||||||||||||
Purchases | 3,675 | 259 | ||||||||||||
Sales | (7) | (571) | ||||||||||||
Realized gains (losses), net | 3 | (99) | ||||||||||||
Unrealized (losses), net | (11) | (242) | ||||||||||||
Accrued discounts | — | 1 | ||||||||||||
Balance as of end of period | $ | 3,357 | $ | 619 |
2021 Annual Report |
105
|
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Condition | Net Amounts of Assets Presented in the Statement of Financial Condition |
Financial
Instruments |
Cash Collateral
Received |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 5,887 | $ | — | $ | 5,887 | $ | — | $ | (904) | $ | 4,983 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 3,224 | $ | — | $ | 3,224 | $ | — | $ | (513) | $ | 2,711 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | 464 | $ | — | $ | 464 | $ | — | $ | — | $ | 464 |
106
|
AllianceBernstein |
Gross
Amounts of Recognized Liabilities |
Gross Amounts Offset in the Statement of Financial Condition |
Net Amounts
of Liabilities Presented in the Statement of Financial Condition |
Financial
Instruments |
Cash Collateral
Pledged |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 18,342 | $ | — | $ | 18,342 | $ | — | $ | (1,824) | $ | 16,518 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 6,893 | $ | — | $ | 6,893 | $ | — | $ | (4,201) | $ | 2,692 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | 664 | $ | — | $ | 664 | $ | — | $ | (138) | $ | 526 |
2021 Annual Report |
107
|
108
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Change in projected benefit obligation: | ||||||||||||||
Projected benefit obligation at beginning of year | $ | 151,124 | $ | 136,113 | ||||||||||
Interest cost | 3,794 | 4,443 | ||||||||||||
Plan settlements | (5,803) | — | ||||||||||||
Actuarial (gain) loss | (4,447) | 16,131 | ||||||||||||
Benefits paid | (2,806) | (5,563) | ||||||||||||
Projected benefit obligation at end of year | 141,862 | 151,124 | ||||||||||||
Change in plan assets: | ||||||||||||||
Plan assets at fair value at beginning of year | 125,022 | 114,080 | ||||||||||||
Actual return on plan assets | 14,526 | 16,505 | ||||||||||||
Employer contribution | — | — | ||||||||||||
Plan settlements | (5,803) | — | ||||||||||||
Benefits paid | (2,806) | (5,563) | ||||||||||||
Plan assets at fair value at end of year | 130,939 | 125,022 | ||||||||||||
Funded status | $ | (10,923) | $ | (26,102) |
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions | $ | 15,858 | $ | (4,089) | $ | (7,934) | ||||||||||||||
Prior service cost | 24 | 24 | 24 | |||||||||||||||||
15,882 | (4,065) | (7,910) | ||||||||||||||||||
Income tax (expense) benefit | (87) | (216) | 312 | |||||||||||||||||
Other comprehensive income (loss) | $ | 15,795 | $ | (4,281) | $ | (7,598) |
2021 Annual Report |
109
|
Retirement Plan | Retired Individual Plan | Foreign Retirement Plans |
OCI
Statement |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Recognized actuarial gain (loss) | $ | 15,858 | $ | 16 | $ | (131) | $ | 15,743 | ||||||||||||||||||
Amortization of prior service cost | 24 | — | — | 24 | ||||||||||||||||||||||
Changes in employee benefit related items | 15,882 | 16 | (131) | 15,767 | ||||||||||||||||||||||
Income tax (expense) benefit | (87) | (1) | 29 | (59) | ||||||||||||||||||||||
Employee benefit related items, net of tax | $ | 15,795 | $ | 15 | $ | (102) | $ | 15,708 |
2022 | $ | 8,817 | |||
2023 | 7,630 | ||||
2024 | 7,460 | ||||
2025 | 9,642 | ||||
2026 | 8,787 | ||||
2027 - 2031 | 45,873 |
110
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 3,794 | $ | 4,443 | $ | 4,944 | ||||||||||||||
Expected return on plan assets | (6,351) | (6,084) | (5,639) | |||||||||||||||||
Amortization of prior service cost | 24 | 24 | 24 | |||||||||||||||||
Settlement loss recognized | 2 | — | — | |||||||||||||||||
Recognized actuarial loss | 1,447 | 1,386 | 1,146 | |||||||||||||||||
Net pension expense | $ | 938 | $ | (231) | $ | 475 |
Years Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Discount rate on benefit obligations | 2.55 | % | 3.35 | % | 4.40 | % | |||||
Expected long-term rate of return on plan assets | 5.25 | % | 5.50 | % | 5.75 | % |
2021 Annual Report |
111
|
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Cash | $ | 47 | $ | — | $ | — | $ | 47 | ||||||||||||||||||
U.S. Treasury Strips | — | 32,355 | — | 32,355 | ||||||||||||||||||||||
Fixed income mutual funds | 17,477 | — | 17,477 | |||||||||||||||||||||||
Equity mutual funds | 43,786 | — | 43,786 | |||||||||||||||||||||||
Equity securities | 14,801 | — | — | 14,801 | ||||||||||||||||||||||
Total assets in the fair value hierarchy | 76,111 | 32,355 | — | 108,466 | ||||||||||||||||||||||
Investments measured at net assets value | — | — | 22,473 | |||||||||||||||||||||||
Investments at fair value | $ | 76,111 | $ | 32,355 | $ | — | $ | 130,939 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Cash | $ | 458 | $ | — | $ | — | $ | 458 | ||||||||||||||||||
U.S. Treasury Strips | — | 26,599 | — | 26,599 | ||||||||||||||||||||||
Fixed income mutual funds | 17,834 | — | — | 17,834 | ||||||||||||||||||||||
Equity mutual funds | 44,020 | — | — | 44,020 | ||||||||||||||||||||||
Equity securities | 14,376 | — | — | 14,376 | ||||||||||||||||||||||
Total assets in the fair value hierarchy | 76,688 | 26,599 | — | 103,287 | ||||||||||||||||||||||
Investments measured at net assets value | — | — | — | 21,735 | ||||||||||||||||||||||
Investments at fair value | $ | 76,688 | $ | 26,599 | $ | — | $ | 125,022 |
112
|
AllianceBernstein |
Options to Buy
AB Holding Units |
Weighted
Average Exercise Price Per Option |
Weighted
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value (in thousands) |
|||||||||||||||||||||||
Outstanding as of December 31, 2020 | 148,985 | $ | 23.61 | 1.2 | ||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||
Exercised | (143,211) | 23.75 | ||||||||||||||||||||||||
Forfeited | — | — | ||||||||||||||||||||||||
Expired | — | — | ||||||||||||||||||||||||
Outstanding as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 | ||||||||||||||||||||
Exercisable as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 | ||||||||||||||||||||
Vested or expected to vest as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 |
2021 Annual Report |
113
|
2021 | 2020 | 2019 | ||||||||||||||||||
Restricted Units Awarded | 35,358 | 50,232 | 45,420 | |||||||||||||||||
Weighted Average Grant Date Fair Value | $ | 44.29 | $ | 23.69 | $ | 29.33 | ||||||||||||||
Compensation Expense (in millions) | $ | 1.6 | $ | 1.2 | $ | 1.3 |
2021 | 2020 | 2019 | ||||||||||||||||||
(in millions excluding share prices) | ||||||||||||||||||||
Restricted Units Awarded | 3.4 | 0.4 | 1.9 | |||||||||||||||||
Grant Date Fair Value Range | $29.06 - $53.86 | $18.80 - $35.42 | $27.32 - $30.85 | |||||||||||||||||
Compensation Expense | $ | 40.9 | $ | 32.1 | $ | 36.7 |
114
|
AllianceBernstein |
AB Holding
Units |
Weighted Average
Grant Date Fair Value per AB Holding Unit |
||||||||||
Unvested as of December 31, 2020 | 18,864,574 | $ | 28.58 | ||||||||
Granted | 6,984,456 | 39.68 | |||||||||
Vested | (7,108,465) | 27.99 | |||||||||
Forfeited | (609,825) | 28.99 | |||||||||
Unvested as of December 31, 2021 | 18,130,740 | $ | 33.98 |
2021 | 2020 | |||||||
Outstanding as of January 1, | 270,509,658 | 270,380,314 | ||||||
Options exercised | 143,211 | 5,182 | ||||||
Units issued | 3,917,437 | 3,363,132 | ||||||
Units retired(1)
|
(3,117,263) | (3,238,970) | ||||||
Outstanding as of December 31, | 271,453,043 | 270,509,658 |
2021 Annual Report |
115
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Earnings before income taxes: | ||||||||||||||||||||
United States | $ | 1,007,847 | $ | 743,687 | $ | 697,501 | ||||||||||||||
Foreign | 208,615 | 163,749 | 125,936 | |||||||||||||||||
Total | $ | 1,216,462 | $ | 907,436 | $ | 823,437 | ||||||||||||||
Income tax expense: | ||||||||||||||||||||
Partnership UBT | $ | 6,951 | $ | 3,356 | $ | 9,196 | ||||||||||||||
Corporate subsidiaries: | ||||||||||||||||||||
Federal | 750 | 1,495 | (943) | |||||||||||||||||
State and local | 956 | 904 | 975 | |||||||||||||||||
Foreign | 58,080 | 44,086 | 32,290 | |||||||||||||||||
Current tax expense | 66,737 | 49,841 | 41,518 | |||||||||||||||||
Deferred tax | (4,009) | (4,188) | 236 | |||||||||||||||||
Income tax expense | $ | 62,728 | $ | 45,653 | $ | 41,754 |
Years Ended December 31 | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
UBT statutory rate | $ | 48,659 | 4.0 | % | $ | 36,297 | 4.0 | % | $ | 32,937 | 4.0 | % | ||||||||||||||||||||||||||
Corporate subsidiaries' federal, state, and local | 1,322 | 0.2 | 2,025 | 0.2 | 4,000 | 0.5 | ||||||||||||||||||||||||||||||||
Foreign subsidiaries taxed at different rates | 43,019 | 3.5 | 33,969 | 3.7 | 26,719 | 3.3 | ||||||||||||||||||||||||||||||||
FIN 48 reserve (release) | — | — | (1,886) | (0.2) | 2,765 | 0.3 | ||||||||||||||||||||||||||||||||
UBT business allocation percentage rate change | 23 | — | 8 | — | (79) | — | ||||||||||||||||||||||||||||||||
Deferred tax and payable write-offs | 1,003 | 0.1 | (887) | (0.1) | 314 | — | ||||||||||||||||||||||||||||||||
Foreign outside basis difference | 1,492 | 0.1 | 3 | — | 155 | — | ||||||||||||||||||||||||||||||||
Amended 2017 return | — | — | (221) | — | (3,853) | (0.5) | ||||||||||||||||||||||||||||||||
Effect of ASC 740 adjustments, miscellaneous taxes, and other | 1,799 | 0.1 | 2,654 | 0.3 | 2,305 | 0.3 | ||||||||||||||||||||||||||||||||
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge | (34,589) | (2.8) | (26,309) | (2.9) | (23,509) | (2.8) | ||||||||||||||||||||||||||||||||
Income tax expense and effective tax rate | $ | 62,728 | 5.2 | $ | 45,653 | 5.0 | $ | 41,754 | 5.1 |
116
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance as of beginning of period | $ | 2,838 | $ | 5,706 | $ | 3,893 | ||||||||||||||
Additions for prior year tax positions | — | — | 1,813 | |||||||||||||||||
Reductions for prior year tax positions | — | — | — | |||||||||||||||||
Additions for current year tax positions | — | — | — | |||||||||||||||||
Reductions for current year tax positions | — | — | — | |||||||||||||||||
Reductions related to closed years/settlements with tax authorities | — | (2,868) | — | |||||||||||||||||
Balance as of end of period | $ | 2,838 | $ | 2,838 | $ | 5,706 |
2021 Annual Report |
117
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Deferred tax asset: | ||||||||||||||
Differences between book and tax basis: | ||||||||||||||
Benefits from net operating loss carryforwards | $ | 7,833 | $ | 7,112 | ||||||||||
Long-term incentive compensation plans | 24,468 | 22,363 | ||||||||||||
Investment basis differences | 5,523 | 5,256 | ||||||||||||
Depreciation and amortization | 3,942 | 2,065 | ||||||||||||
Lease liability | 5,327 | 5,994 | ||||||||||||
Other, primarily accrued expenses deductible when paid | 4,917 | 4,737 | ||||||||||||
52,010 | 47,527 | |||||||||||||
Less: valuation allowance | (3,828) | (3,025) | ||||||||||||
Deferred tax asset | 48,182 | 44,502 | ||||||||||||
Deferred tax liability: | ||||||||||||||
Differences between book and tax basis: | ||||||||||||||
Intangible assets | 7,622 | 7,933 | ||||||||||||
Investment in foreign subsidiaries | 4,084 | 3,048 | ||||||||||||
Right-of-use asset | 4,490 | 4,975 | ||||||||||||
Other | 2,075 | 1,760 | ||||||||||||
Deferred tax liability | 18,271 | 17,716 | ||||||||||||
Net deferred tax asset | $ | 29,911 | $ | 26,786 |
118
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Institutions | $ | 587,017 | $ | 512,914 | $ | 480,144 | ||||||||||||||
Retail | 2,223,829 | 1,811,948 | 1,619,832 | |||||||||||||||||
Private Wealth Management | 1,126,142 | 882,672 | 904,505 | |||||||||||||||||
Bernstein Research Services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Other | 56,283 | 56,908 | 163,245 | |||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | |||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | |||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 |
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net revenues: | ||||||||||||||||||||
United States | $ | 2,403,870 | $ | 1,959,528 | $ | 1,975,105 | ||||||||||||||
International | 2,037,732 | 1,749,008 | 1,543,327 | |||||||||||||||||
Total | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | ||||||||||||||
Long-lived assets: | ||||||||||||||||||||
United States | $ | 3,331,572 | $ | 3,285,761 | ||||||||||||||||
International | 45,796 | 53,453 | ||||||||||||||||||
Total | $ | 3,377,368 | $ | 3,339,214 |
2021 Annual Report |
119
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Investment advisory and services fees | $ | 1,644,757 | $ | 1,368,484 | $ | 1,275,677 | ||||||||||||||
Distribution revenues | 637,076 | 516,336 | 441,437 | |||||||||||||||||
Shareholder servicing fees | 85,745 | 79,394 | 75,122 | |||||||||||||||||
Other revenues | 8,364 | 8,314 | 7,303 | |||||||||||||||||
Bernstein Research Services | 2 | 3 | 2 | |||||||||||||||||
$ | 2,375,944 | $ | 1,972,531 | $ | 1,799,541 |
EQH | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Investment advisory and services fees | $ | 133,074 | $ | 115,901 | $ | 109,316 | ||||||||||||||
Other revenues | 675 | 1,330 | 1,013 | |||||||||||||||||
$ | 133,749 | $ | 117,231 | $ | 110,329 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Commissions and distribution payments to financial intermediaries | $ | 4,550 | $ | 3,952 | $ | 3,956 | ||||||||||||||
General and administrative | 2,373 | 2,281 | 2,466 | |||||||||||||||||
Other | 3,953 | 5,463 | 3,644 | |||||||||||||||||
$ | 10,876 | $ | 11,696 | $ | 10,066 | |||||||||||||||
Balance Sheet: | ||||||||||||||||||||
Institutional investment advisory and services fees receivable | $ | 8,607 | $ | 8,343 | ||||||||||||||||
Prepaid expenses | 545 | 404 | ||||||||||||||||||
Other due to EQH and its subsidiaries | (1,534) | (1,280) | ||||||||||||||||||
EQH Facility | (755,000) | (675,000) | ||||||||||||||||||
$ | (747,382) | $ | (667,533) |
120
|
AllianceBernstein |
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Non-redeemable non-controlling interest | $ | 100 | $ | — | $ | 92 | ||||||||||||||
Redeemable non-controlling interests: | ||||||||||||||||||||
Consolidated company-sponsored investment funds | 5,011 | (4,169) | 29,549 | |||||||||||||||||
Total non-controlling interest in net income (loss) | $ | 5,111 | $ | (4,169) | $ | 29,641 |
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Consolidated company-sponsored investment funds | $ | 421,169 | $ | 102,359 | ||||||||||
Total redeemable non-controlling interest | $ | 421,169 | $ | 102,359 |
2021 Annual Report |
121
|
122
|
AllianceBernstein |
PART III | ||
2021 Annual Report |
123
|
Board Committees
|
||
|
|
|
|
|||||||||||
Executive
Committee |
Audit and Risk
Committee |
Corporate Governance
Committee |
Compensation and
Workplace Practices Committee |
|||||||||||
Joan Lamm-Tennant |
|
|||||||||||||
Seth P. Bernstein | M | M | ||||||||||||
Nella Domenici | M | |||||||||||||
Jeffrey Hurd | ||||||||||||||
Daniel G. Kaye | M | |||||||||||||
Nick Lane | ||||||||||||||
Kristi Matus |
|
|
||||||||||||
Das Narayandas | M | |||||||||||||
Mark Pearson | M | M | M | |||||||||||
Bertram L. Scott | M | |||||||||||||
Charles Stonehill |
|
|||||||||||||
Todd Walthall | M |
|
Chairperson | ||||
M | Member |
124
|
AllianceBernstein |
Board of Directors
|
||
|
|
|
|
|||||||||||||||||
Joan Lamm-Tennant
Chair of the Board, Equitable Holdings
Committees:
Executive (Chair)
Age: 69
Director Since: 2021
|
Seth P. Bernstein
President and Chief Executive Officer, AllianceBernstein
Committees:
Executive
Governance
Age: 60
Director Since: 2017
|
Nella L. Domenici
Board member of Change Healthcare
Committees:
Audit
Age: 61
Director Since: 2020
|
Jeffrey Hurd
Chief Operating Officer, Equitable Holdings
Committees:
None
Age: 55
Director Since: 2019
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
Daniel G. Kaye
Director, Equitable Holdings, Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America
Committees:
Compensation
Age: 67
Director Since: 2017
|
Nick Lane
President, Equitable Financial Life Insurance Company
Committees:
None
Age: 48
Director Since: 2019
|
Kristi Matus
Corporate Chief Financial Officer and Chief Operating Officer, Buckle
Committees:
Governance (Chair)
Compensation (Chair)
Age: 54
Director Since: 2019
|
Das Narayandas
Edsel Bryant Ford Professor of Business Administration, Harvard Business School
Committees:
Governance
Age: 61
Director Since: 2017
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
Mark Pearson
President and Chief Executive Officer, Equitable Holdings
Committees:
Executive
Governance
Compensation
Age: 63
Director Since: 2011
|
Bertram L. Scott
Director, Equitable America and Equitable Holdings
Committees:
Compensation
Age: 70
Director Since: 2020
|
Charles Stonehill
Founding Partner, Green & Blue Advisors
Committees:
Audit (Chair)
Age: 63
Director Since: 2019
|
Todd Walthall
Executive Vice President of Enterprise Growth, UnitedHealth Group
Committees:
Audit
Age: 51
Director Since: 2021
|
2021 Annual Report |
125
|
|
Background
•Ms. Lamm-Tennant was appointed Chair of AB in October 2021.
•She has served as Chair of the Board of EQH, Equitable Financial and Equitable America since October 2021, after having joined these boards in January 2020.
•She also serves on the Executive Committee, the Audit Committee, and the Finance and Risk Committee of EQH.
•Ms. Lamm-Tennant founded Blue Marble Microinsurance and served as its CEO from 2015 to 2020.
•She currently is executive advisor of Brewer Lane Ventures, having joined in 2021; she also serves on the boards of Ambac Financial Group, Hamilton Insurance Group and Element Fleet Financial Corp.
•Previously, Ms. Lamm-Tennant was Adjunct Professor, International Business at The Wharton School of the University of Pennsylvania from 2005 to 2016. Prior to or concurrently with her service at The Wharton School, Ms. Lamm-Tennant held various senior positions in the insurance industry, including with Marsh & McLennan Companies, Guy Carpenter and General Reinsurance Corporation.
Director Qualifications
Ms. Lamm-Tennant brings to the Board significant industry and academic experience, having held global business leadership roles and developed a distinguished career as a professor of finance and economics.
|
|||||||||||||
Joan Lamm-Tennant
Committees: Executive (Chair)
Age: 69
Director Since: 2021
|
||||||||||||||
|
Background
•Mr. Bernstein was appointed President and Chief Executive Officer in April 2017 and began serving in this role on May 1, 2017.
•Serving as Senior Executive Vice President and Head of Investment Management and Research of EQH since April 2018.
•Previously, Mr. Bernstein had a distinguished 32-year career at JPMorgan Chase, most recently as managing director and global head of Managed Solutions and Strategy at J.P. Morgan Asset Management. In this role, Mr. Bernstein was responsible for the management of all discretionary assets within the Private Banking client segment.
•Among other roles, he served as Managing Director and Global Head of Fixed Income and Currency for 10 years, concluding in 2012.
•Mr. Bernstein held the position of Chief Financial Officer at JPMorgan Chase’s Investment Management and Private Banking division.
•Mr. Bernstein is a member of the Management Committee of EQH and the Board of Managers of Haverford College, Pennsylvania.
Director Qualifications
Mr. Bernstein brings to the Board the diverse financial services experience he developed through his extensive service at JPMorgan Chase and more recent career at AB.
|
|||||||||||||
Seth P. Bernstein
Committees: Executive, Governance
Age: 60
Director Since: 2017
|
||||||||||||||
126
|
AllianceBernstein |
|
Background
•Ms. Domenici was appointed a director of AB in January 2020.
•During 2020 and 2021, she served as Chief Financial Officer and member of the Executive Committee at Dataminr, a leading high-growth AI company that is late-stage venture backed. In her senior executive role, Ms. Domenici was responsible for various strategic, operational and administrative functions.
•From 2015 to 2018, she served as Chief Financial Officer and member of the Operating Committee at Bridgewater Associates, a hedge fund with more than $160 billion in AUM.
•Prior thereto, she held various senior managerial, investment banking and strategic positions with firms including Citadel Investment Group, Credit Suisse and The Monitor Consulting Group. In addition, she is a proven entrepreneur, having founded a successful financial consulting firm that advised many family-owned, private equity, venture-backed and real estate companies.
•Ms. Domenici is a dedicated advocate and champion in the areas of education, healthcare and economic development. She co-founded the Excellent Schools of New Mexico, a leading non-profit organization that supports charter schools in underserved communities, and she serves on the board of Regis High School in New York City.
•She also serves on the advisory board of the International Folk-Art Market, which generates economic opportunities for folk artists worldwide, particularly women in developing countries.
•Ms. Domenici is a former member of the Bipartisan Policy Center Behavioral Health Integration Task Force, where she championed initiatives focused on mental illness, and of the board of One World Surgery, which provides access to quality surgical care globally.
Director Qualifications
Ms. Domenici brings to the Board her seasoned business acumen and her extensive global experience in strategic financial management, corporate strategy and operations.
|
|||||||||||||
Nella L. Domenici
Committees: Audit
Age: 61
Director Since: 2020
|
||||||||||||||
|
Background
•Mr. Hurd was appointed a director of AB in April 2019.
•He has served as Chief Operating Officer of EQH, and as a member of the EQH Management Committee, since 2018.
•In this role, Mr. Hurd has strategic oversight for EQH’s Human Resources, Information Technology and Communications departments.
•He also is responsible for EQH’s Transformation Office, which encompasses key functional areas, including operations, procurement and corporate real estate, as well as EQH's Innovation and Design Office, which contemplates new ways or working.
•Mr. Hurd also has served as Chief Operating Officer of Equitable Financial since 2018.
•Prior to joining Equitable, Mr. Hurd served as Executive Vice President and Chief Operating Officer at American International Group, Inc. (“AIG”), where he amassed deep financial services industry experience during his 20-year tenure.
•While at AIG, Mr. Hurd served as Chief Human Resources Officer, Chief Administrative Officer, Deputy General Counsel and Head of Asset Management Restructuring.
Director Qualifications
Mr. Hurd brings to the Board his extensive experience in financial services and strategic insights as a senior executive at EQH and, formerly, at AIG.
|
|||||||||||||
Jeffrey J. Hurd
Committees: None
Age: 55
Director Since: 2019
|
||||||||||||||
2021 Annual Report |
127
|
|
Background
•Mr. Kaye was appointed a director of AB in April 2017.
•He has been a director of EQH since May 2018 and a director of Equitable Financial and Equitable America since September 2015.
•Also, since May 2019, Mr. Kaye has been a director of CME Group, Inc. (NASDAQ: CME), where he serves as Chair of the Audit Committee.
•From January 2013 to May 2014, Mr. Kaye served as interim Chief Financial Officer and Treasurer of HealthEast Care System. He held this post after retiring in 2012 from his career at Ernst & Young LLP (“E&Y”).
•He served for 35 years at E&Y, including 25 years as an audit partner.
•During his tenure at E&Y, Mr. Kaye served as the New England Area Managing Partner and the Midwest Area Managing Partner of Assurance.
•Mr. Kaye is a Certified Public Accountant and a National Association of Corporate Directors Board Leadership Fellow.
Director Qualifications
Mr. Kaye brings to the Board the extensive financial expertise he developed through his career at E&Y and his directorships at CME, EQH and certain of EQH’s subsidiaries.
|
|||||||||||||
Daniel G. Kaye
Committees: Compensation
Age: 67
Director Since: 2017
|
||||||||||||||
|
Background
•Mr. Lane was appointed a director of AB in April 2019.
•He has served as Head of Retirement, Wealth Management & Protection Solutions of EQH, and as a member of the EQH Management Committee, since May 2018.
•Also, since February 2019, Mr. Lane has served as President of Equitable Financial, leading that company’s Retirement, Wealth Management & Protection Solutions businesses and also leading its Marketing and Digital functions.
•Mr. Lane held various leadership roles with AXA and Equitable Financial since joining Equitable Financial (then a subsidiary of AXA) in 2005 as Senior Vice President of the Strategic Initiatives Group.
•He has served as President and CEO of AXA Japan, Senior Executive Director at Equitable Financial with responsibilities across commercial divisions, and Head of AXA Global Strategy overseeing AXA’s five-year strategic plan across 60 countries.
•Prior to joining Equitable Financial, Mr. Lane was a consultant for McKinsey & Company and a Captain in the United States Marine Corps.
Director Qualifications
Mr. Lane brings to the Board the outstanding experience and leadership qualities he has developed in various senior roles at AXA, EQH and various subsidiaries, and as an officer in the United States Marine Corps.
|
|||||||||||||
Nick Lane
Committees: None
Age: 48
Director Since: 2019
|
||||||||||||||
128
|
AllianceBernstein |
|
Background
•Ms. Matus was appointed a director of AB in July 2019.
•She has been a director and member of various board committees at EQH and Equitable America since March 2019 and at Equitable Financial since September 2015.
•Ms. Matus joined Buckle, a tech-enabled financial services company, as Chief Financial Officer and Chief Operating Officer in October 2020 and has served as director and Audit Committee Chair of Cerence, Inc., a leading provider of automotive technology, since October 2019.
•Formerly, Ms. Matus had been Chair of the Compensation Committee at Tru Optik Data Corp., a digital media intelligence company, from September 2016 to October 2020, an executive advisor to Thomas H. Lee Partners L.P., a private equity firm, from October 2017 to October 2020, and a director and the Audit Committee Chair at Nextech Systems, a provider of healthcare technology solutions, from June 2019 to October 2020.
•Ms. Matus served as Executive Vice President and Chief Financial & Administrative Officer at athenahealth, Inc. (“athena”) from July 2014 to May 2016.
•Before joining athena, Ms. Matus served as Executive Vice President of Governance Services at Aetna, Inc. from February 2012 to July 2013.
•Previously, she held several leadership roles at United Services Automobile Association.
Director Qualifications
Ms. Matus brings to the Board her extensive experience in finance, risk management, compliance and audit functions, investor relations, human capital, real estate and IT, gained through her numerous leadership roles at technology, healthcare and insurance companies.
|
|||||||||||||
Kristi A. Matus
Committees: Governance (Chair), Compensation (Chair)
Age: 54
Director Since: 2019
|
||||||||||||||
|
Background
•Mr. Narayandas was appointed a director of AB in November 2017.
•He is the Edsel Bryant Ford Professor of Business Administration at Harvard Business School (“HBS”), where he has been a faculty member since 1994.
•Mr. Narayandas also currently serves as the Senior Associate Dean and Chairman of Harvard Business School Publishing, and as the Senior Associate Dean of HBS External Relations.
•He previously served as the senior associate dean of HBS Executive Education, and as chair of the HBS Executive Education Advanced Management Program and the Program for Leadership Development, as well as course head of the required first-year marketing course in the MBA program.
•Mr. Narayandas has received the award for teaching excellence from the graduating HBS MBA class on several occasions. Other awards he has received include the Robert F. Greenhill Award for Outstanding Service to the HBS Community, the Charles M. Williams Award for Excellence in Teaching and the Apgar Award for Innovation in Teaching.
•His scholarship has focused on market-facing issues in traditional business-to-business marketing and professional service firms, including client management strategies, delivering service excellence, product-line management and channel design.
Director Qualifications
Mr. Narayandas brings to the Board his wealth of experience at the highest level of academia in the U.S.
|
|||||||||||||
Das Narayandas
Committees: Governance
Age: 61
Director Since: 2017
|
||||||||||||||
2021 Annual Report |
129
|
|
Background
•Mr. Pearson was appointed a director of AB in February 2011.
•He has served as director and as President and CEO of EQH since May 2018.
•Mr. Pearson also serves as a member of EQH’s Management Committee.
•Additionally, Mr. Pearson serves as CEO of Equitable Financial and Equitable America, and he has been a director of both companies since 2011.
•Mr. Pearson joined AXA in 1995 when AXA acquired National Mutual Funds Management Limited (presently AXA Asia Pacific Holdings Limited) and was appointed Regional Chief Executive of AXA Asia Life in 2001.
•From 2008 to 2011, Mr. Pearson was President and Chief Executive Officer of AXA Japan Holding Co., Ltd. (“AXA Japan”).
•Prior to joining AXA, Mr. Pearson spent approximately 20 years in the insurance sector, holding several senior management positions at Hill Samuel, Schroders, National Mutual Holdings and Friends Provident.
•Mr. Pearson is a Fellow of the Chartered Public Association of Certified Public Accountants.
Director Qualifications
Mr. Pearson brings to the Board the diverse financial services experience he has developed through his service as an executive, including as Chief Executive Officer, with EQH, AXA Japan and other AXA affiliates.
|
|||||||||||||
Mark Pearson
Committees: Executive, Governance, Compensation
Age: 63
Director Since: 2011
|
||||||||||||||
|
Background
•Mr. Scott was appointed a director of AB in September 2020.
•He has been a director and member of various board committees of EQH, Equitable America and Equitable Financial since March 2019.
•He had previously served as director of Equitable America and Equitable Financial from May 2012 to May 2018.
•Mr. Scott currently is a member of the Board of the American Heart Association, having served as its chairman from 2019 to 2021.
•Mr. Scott retired in 2019 as Senior Vice President of Population Health Management of Novant Health, Inc. after having served since February 2015.
•From October 2012 to November 2015, Mr. Scott served as President and Chief Executive Officer at Affinity Health Plan.
•Prior to joining Affinity, he served as President, U.S. Commercial of CIGNA Corporation from June 2010 to December 2011.
•Prior to joining CIGNA, Mr. Scott was Executive Vice President and Chief Institutional Development & Sales Officer at TIAA-CREF; he had joined TIAA-CREF in 2000.
•Mr. Scott is a director and Audit Committee Chair at Becton, Dickinson and Company (NYSE: BDX), a director and Audit Committee Chair at Lowe's Companies, Inc. (NYSE: LOW) and, since January 2021, a director of Point32Health.
Director Qualifications
Mr. Scott brings to the Board his audit committee financial expertise and strong strategic and operational experience developed through a variety of executive roles at insurance and financial services companies as well as his service on the boards of other U.S. public companies.
|
|||||||||||||
Bertram L. Scott
Committees: Compensation
Age: 70
Director Since: 2020
|
||||||||||||||
130
|
AllianceBernstein |
|
Background
•Mr. Stonehill was appointed a director of AB in April 2019.
•He has been a director and member of various board committees at EQH and Equitable America since March 2019, and at Equitable Financial since November 2017.
•Mr. Stonehill has served as a member of the supervisory board of Deutsche Boerse AG, a capital market infrastructure provider, since 2018. In January 2021, Mr. Stonehill joined the board of Constellation Acquisition Corp. I, a blank check company that targets disruptive innovation across various segments of the global economy.
•In addition, Mr. Stonehill is the Founding Partner of Green & Blue Advisors LLC, having started this advisory firm that provides financial advice to clean-tech and other environmentally-minded companies in 2011.
•He formerly was a director of Play Magnus AS, a chess app company, from 2016 to 2021, and non-executive vice chairman of Julius Baer Group Ltd., a global private banking company based in Switzerland, from 2009 to 2021.
•Mr. Stonehill has over 30 years' experience in energy markets, investment banking and capital markets, including leadership positions at Lazard Freres & Co. LLC, Credit Suisse and Morgan Stanley & Co.
•He also served as Chief Financial Officer at Better Place Inc., an electric vehicle start-up, from 2009 to 2011, where he oversaw global financial strategy and capital raising.
Director Qualifications
Mr. Stonehill brings to the Board his extensive expertise and distinguished track record in the financial services industry and over 30 years' experience in energy markets, investment banking and capital markets.
|
|||||||||||||
Charles G.T. Stonehill
Committees: Audit (Chair)
Age: 63
Director Since: 2019
Skills:
|
||||||||||||||
|
Background
•Mr. Walthall was appointed a director of AB in September 2021.
•He serves as Executive President of Enterprise Growth for UnitedHealth Group, a diversified healthcare company.
•Previously, he served as Executive Vice President and Chief Operating Officer at Blue Shield of California.
•Prior to Blue Shield, he served as Vice President and General Manager of Digital Service Integration at American Express. Before joining AMEX, Mr. Walthall held numerous senior roles with USAA Insurance, having contributed to the development of the industry's first mobile check-deposit service.
•He was the recipient of the 2016 Multicultural Leaders of California award from the National Diversity Council, and in 2020 was named one of the Most Influential Black Executives in Corporate America by Savoy Magazine.
Director Qualifications
Mr. Walthall brings over two decades of leadership experience with growth strategy, operations, product development, and customer service and retention programs through his extensive experience in numerous leadership roles throughout his career.
|
|||||||||||||
Todd Walthall
Committees: Audit
Age: 51
Director Since: 2021
|
||||||||||||||
2021 Annual Report |
131
|
132
|
AllianceBernstein |
|
Responsibilities:
•Exercises all of the powers and authority of the Board (with limited exceptions) when the Board is not in session, or when it is impractical to assemble the full Board.
•Typically, determines quarterly unitholder distributions, as applicable.
|
||||||||||
Executive Committee
Committee Members:
Joan Lamm-Tennant (Chair)
Seth P. Bernstein
Mark Pearson
Meetings in 2021: 4
|
|||||||||||
|
Responsibilities:
•Assist the Board in its oversight of:
•the integrity of the financial statements of the Partnerships;
•the effectiveness of the Partnerships' internal control over financial reporting and the Partnerships' risk management framework and risk mitigation processes;
•the Partnerships’ status and system of compliance with legal and regulatory requirements and business conduct;
•the independent registered public accounting firm’s qualification and independence; and
•the performance of the Partnerships’ internal audit function.
•Oversee the appointment, retention, compensation, evaluation and termination of the Partnerships’ independent registered public accounting firm.
•Encourages continuous improvement of, and fosters adherence to, the Partnerships’ policies, procedures and practices at all levels.
•Provides an open avenue of communication among the independent registered public accounting firm, senior management, the Internal Audit Department, the Chief Compliance Officer, the Chief Risk Officer and the Board.
|
||||||||||
Audit and Risk Committee
Committee Members:
Charles Stonehill (Chair)
Nella Domenici Todd Walthall
Meetings in 2021: 7
|
|||||||||||
2021 Annual Report |
133
|
|
Responsibilities:
•Assists the Board and the sole stockholder of the General Partner in:
•identifying and evaluating qualified individuals to become Board members; and
•determining the composition of the Board and its committees.
•Assists the Board in:
•developing and monitoring a process to assess Board effectiveness;
•developing and implementing our Corporate Governance Guidelines; and
•reviewing our policies and programs that relate to matters of corporate responsibility of the General Partner and the Partnerships.
|
||||||||||
Governance Committee
Committee Members:
Kristi Matus (Chair)
Seth P. Bernstein
Das Narayandas
Mark Pearson
Meetings in 2021: 1 regular mtg. and 1 special mtg.
|
|||||||||||
|
For a discussion of the Compensation Committee's responsibilities, please see “Compensation Discussion and Analysis - Compensation Committee; Process for Determining Executive Compensation” in Item 11.
|
||||||||||
Compensation and Workplace Practices Committee
Committee Members:
Kristi Matus (Chair)
Daniel G. Kaye
Mark Pearson
Bertram L. Scott
Meetings in 2021: 5 regular mtgs. and 1 special mtg.
|
|||||||||||
134
|
AllianceBernstein |
Board of Directors | ||||||||
The Board, together with the Audit Committee, has oversight for our company’s risk management framework, which includes investment risk, credit and counterparty risk, and operational risk (includes legal/regulatory risk, cyber security risk and climate risk), and is responsible for helping to ensure that these risks are managed in a sound manner.
|
||||||||
q | ||||||||
Audit Committee | ||||||||
The Board has delegated to the Audit Committee, which consists entirely of independent directors, the responsibility to consider our company’s policies and practices with respect to investment, credit and counterparty, and operational risk assessment and risk management, including discussing with management the major financial, operational and reputational risk exposures and the steps taken to monitor and control such exposures.
|
||||||||
p | ||||||||||||||||||||
Risk Management Team | Chief Risk Officer | |||||||||||||||||||
Members of the company's risk management team (including our Chief Information Security Officer), who are responsible for identifying, managing and controlling the array of risks inherent in our company’s business and operations, make quarterly reports to the Audit Committee, which address investment, credit and counterparty, and operational risk identification, assessment and monitoring.
|
u |
The Chief Risk Officer makes quarterly presentations to the Audit Committee and has reporting lines to the CEO and the Audit Committee.
|
||||||||||||||||||
2021 Annual Report |
135
|
136
|
AllianceBernstein |
2021 Annual Report |
137
|
|
|
|
|
|
||||||||||
Seth P. Bernstein
President and Chief Executive Officer (“CEO“)
|
Kate C. Burke
Chief Operating
Officer (“COO“) and Head of Private Wealth
|
Laurence E. Cranch
Chief Legal Officer
|
Karl Sprules
Head of Global Technology & Operations
|
Ali Dibadj
CFO and Head of Strategy
|
138
|
AllianceBernstein |
AB U.S. retail fixed income mutual funds that placed in the top quartile (3-yrs):
•AB Intermediate Diversified Muni
•AB High Income Municipal
•AB Intermediate New York Municipal
•AB Intermediate California Municipal
•AB Municipal Bond Inflation Strategies
•AB Municipal Income National
•AB Municipal Income California Strategies
|
AB Non‑U.S. fixed income funds that placed in the top quartile (3-yrs):
•AB European Income
|
AB U.S. retail equity mutual funds that placed in the top quartile (3-yrs):
•AB Large Cap Growth
•AB Discovery Growth
•AB Small Cap Growth
•AB Sustainable Global Thematic
|
AB Non‑U.S. equity funds that placed in the top quartile (3-yrs):
•AB International Healthcare
•AB International Technology
•AB Sustainable Global Thematic
|
||||||||
2021 Annual Report |
139
|
140
|
AllianceBernstein |
Deliver superior investment solutions to clients | ||||||||||||||
Develop, commercialize
and scale our suite
of services
Launched
9 Products in Private Wealth Channel, including: US Commercial Real Estate Private Debt Fund, Real Estate Equity Plus, Global Disruptors, Relative Value, Sustainable Intermediate Duration and Sustainable US Thematic Strategies
$21.5 billion
Institutional pipeline, with >$60M in annualized fee base
$31.5 billion
ESG Portfolios with Purpose +91% year-over-year
$10 billion
Committed by Equitable Financial to expand AB’s Private Alternative and Private Placement Platforms
|
||||||||||||||
Fixed Income and Equity Performance | ||||||||||||||
Maintain strong incremental margins(1)
|
||||||||||||||
AB Adjusted Operating Margin | ||||||||||||||
|
||||||||||||||
Total Unitholder Return
(2017-2021; includes dividend reinvestment)
|
||||||||||||||
Portfolios with Purpose:
New Sustainable launches:
Sustainable Income, Sustainable US Thematic Credit, Sustainable Climate Solutions, Global Low Carbon, Sustainable EM Debt
|
||||||||||||||
|
||||||||||||||
Gross Sales | Active Equity | Organic Growth | Beneficial Pipeline Mix | ||||||||
AB’s Retail channel achieved a record of | Active Equity organic growth | Net Flows scaled, generated an active organic growth rate of | Active Equities and Alternatives represented over | ||||||||
$100B | 10.1% | 4.3% | 85% | ||||||||
in gross sales in 2021, +27% year-over-year | in 2021 | in 2021 | of institutional pipeline fee base at year-end |
2021 Annual Report |
141
|
Net Revenues | $ | 4,441,602 | |||
Adjustments (see above)
|
(832,066) | ||||
Adjusted Net Revenues | $ | 3,609,536 | |||
Employee Compensation & Benefits Expense | $ | 1,716,013 | |||
Adjustments (see above)
|
(39,011) | ||||
Adjusted Employee Compensation & Benefits Expense | $ | 1,677,002 | |||
Adjusted Compensation Ratio | 46.5 | % |
142
|
AllianceBernstein |
Seth P. Bernstein
President and Chief Executive Officer
Summary of Achievements: As President and CEO, Mr. Bernstein led the firm to achieve strong financial results, highlighted by the firm's record 33.6% adjusted operating margin, which increased by 350 basis points. Investment performance improved under his leadership, and he focused the firm on making progress on strategic priorities, including the growth of our private alternatives business, the advancement of our responsibility goals, and strengthening the partnership with Equitable. Mr. Bernstein navigated the firm through another challenging environment in 2021 with a focus on our employees, bolstering culture, and prioritizing diversity and inclusion initiatives. The culmination of these efforts delivered value for unitholders.
|
Individual Achievements
Financial and Investment Performance:
•Led the firm’s efforts in achieving an approximate 18% year-over-year increase in adjusted net revenues, reflecting firm-wide client net inflows of $26.1 billion, or an active organic growth rate of 4.3%. Each of the firm’s three distribution channels grew organically in 2021. Higher revenues coupled with expense management led to an increase in adjusted operating margin of 350 basis points to a record 33.6%. This represented an incremental operating margin of 53%, above the firm’s targeted long-term range of 45-50%.
•Earnings per unit (“EPU”) of $3.89 in 2021 grew 34% over 2020.
•Led focus on improved investment results; one-year performance improved significantly for both the firm’s active equity and fixed income services in 2021, with long-term performance remaining strong. As of year-end, equity services, as a percentage of assets outperforming applicable benchmarks for the one-, three- and five-year periods achieved 73%, 48% and 75%, respectively, while fixed income services achieved 89%, 72% and 70%, respectively.
Strategic Initiatives
•Diversified future active product offerings across major asset classes through the launch of new strategies, including Growth Equity, Sustainability, Asia, Income and Emerging Markets.
•Drove progress on key strategic growth initiatives to build out our private alternatives franchise, including deployment of capital in our new European Commercial Real Estate Debt strategy and agreement with Equitable Financial to provide up to $10 billion of capital into AB’s higher quality illiquid strategies.
•Continued to strengthen overall partnership with Equitable, including working jointly to improve yield on their General Account while seeding new private alternatives strategies.
•Advanced responsibility goals by enhancing our own corporate practices, such as establishing a Board oversight framework, integrating ESG metrics into scorecards and increasing the transparency of diversity data.
Organizational Strength
•Successfully managed through another challenging year, navigating the impacts of the global pandemic. Increased focus on employee well-being and the development of management skills necessary to thrive in a hybrid work environment.
•Advanced our headquarters transition to Nashville, hiring and onboarding new staff and completed our state-of-the-art new corporate headquarters.
Culture
•Maintained strong engagement metrics in AB’s employee survey and supported the firm’s diversity and inclusion (D&I) initiatives, including launching an asset management industry D&I working group, implementing anti-racism training globally and adding two diverse Board members.
•Completed a robust process to develop AB's Purpose and refreshed values, which will guide how we act, make decisions and measure ourselves in the eyes of all of our stakeholders.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
2021 Annual Report |
143
|
144
|
AllianceBernstein |
2021 Annual Report |
145
|
Karl Sprules
Head of Global Technology & Operations
Summary of Achievements: As Global Head of Technology & Operations (GTO), Mr. Sprules led the opening of our Nashville office and chaired our Pandemic Response Team. He rigorously managed Technology and Operations expenses and delivered on a broad portfolio of strategic firm initiatives.
|
Individual Achievements
Financial
•Managed the Technology & Operations expenses down to less than 11% of revenue.
Strategic
•Led AB’s Technology, Operations, Security, and Real Estate teams globally and managed the infrastructure expense ratio down to its lowest level in 10 years while supporting business development and growth. Mr. Sprules completed the reorganization and consolidation of the GTO leadership team and advised the Board, other NEOs, and the Operating Committee on the use of technology to gain competitive business advantage.
•Continued to increase our operational efficiency by creating programs that drove down error rates, reduced onboarding risk, automated operational work and increased service levels.
•Advised other NEOs and the Operating Committee on the technical and operational feasibility of our strategic growth initiatives, and provided staffing, infrastructure and oversight for new initiatives throughout the year.
•Pivoted the focus of our security infrastructure from defense to defense and response, providing thought leadership on security infrastructure architecture, developing maturity models for business unit assessment of response preparedness and reporting to the Board and other NEOs on our security posture.
Organizational
•Led the team responsible for opening our new corporate headquarters in Nashville. This brought together multidisciplinary teams of thought leaders in design, construction, redundance, security, technology and collaboration to create a state-of-the-art work environment.
•Chaired the AB COVID-19 Pandemic Repose Team. This cross-functional leadership team focused on maintaining firm-wide operating efficiency while keeping our employees safe. Mr. Sprules led the response to virus variant surges and advised business unit heads on the impact of extended work from home.
Culture
•Produced the Nashville Beat, a recurring Town Hall program designed to engage new and tenured Nashville staff as we transitioned to a hybrid work environment.
•Co-lead H-Labs, a joint venture between AB and Equitable focused on accelerating innovation and collaboration.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
146
|
AllianceBernstein |
Laurence E. Cranch
Chief Legal Officer
Summary of Achievements: As CLO, Mr. Cranch was responsible for managing the legal and compliance department, overseeing all legal affairs for the firm. Mr. Cranch successfully planned and implemented the transition of the leadership of this department to the firm’s General Counsel, Mark Manley, as a result of his retirement at the end of 2021.
|
Individual Achievements
Financial
•Continued to successfully control outside counsel expenses with respect to ongoing and routine legal matters.
Strategic
•Successfully completed the transition of leadership of the Legal and Compliance Department.
•Ensured no regulatory examination resulted in a material adverse finding or enforcement proceeding.
•Received favorable feedback from AB business leaders relating to the quality of service of the Legal and Compliance department.
•Ensured the firm remained free of material litigation, reflecting our pragmatic and aggressive program to avoid situations that are likely to produce disputes and, where disputes do arise, resolve them on favorable terms.
Organizational
•Completed the relocation of nearly all of the New York Legal and Compliance department to Nashville, including the retention of the employees who relocated, and the recruitment of qualified individuals to fill remaining senior positions in Nashville.
•Implemented compliance solutions in response to new compliance requirements that became effective in 2021.
Culture
•Stressed the importance of our fiduciary culture through compliance and workplace practices training.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
2021 Annual Report |
147
|
148
|
AllianceBernstein |
Eaton Vance Corp. | Franklin Templeton Investments | Goldman Sachs Asset Management | ||||||
Invesco Ltd. | JP Morgan Asset Management | MFS Investment Management | ||||||
Morgan Stanley Invest. Manage. | Neuberger Berman Group | Nuveen Investments / TIAA | ||||||
PIMCO LLC | Prudential Investments | T. Rowe Price, Inc. | ||||||
The Vanguard Group, Inc. | ||||||||
2021 Annual Report |
149
|
150
|
AllianceBernstein |
2021 Annual Report |
151
|
152
|
AllianceBernstein |
2021 Annual Report |
153
|
Seth Bernstein | Median Employee | |||||||
Base salary ($) | 500,000 | 125,000 | ||||||
Cash bonus ($) | 5,575,000 | 30,000 | ||||||
Stock awards ($)(1)
|
6,075,000 | — | ||||||
All other compensation ($)(2)
|
142,813 | 1,550 | ||||||
Total ($) | 12,292,813 | 156,550 | ||||||
2021 CEO Pay Ratio
|
79:1 |
154
|
AllianceBernstein |
Kristi Matus (Chair) | Daniel Kaye | ||||
Mark Pearson | Bertram Scott |
2021 Annual Report |
155
|
Summary Compensation Table for 2021 | ||
Name and Principal Position | Year |
Salary
($) |
Bonus
($) |
Stock Awards(1)(2)
($)
|
Option Awards(3) ($)
|
All Other
Compensation ($) |
Total
($) |
||||||||||||||||
Seth P. Bernstein(4)(5)
|
2021 | 500,000 | 5,575,000 | 6,075,000 | — | 142,813 | 12,292,813 | ||||||||||||||||
President and CEO | 2020 | 500,000 | 4,015,000 | 4,585,051 | 250,003 | 52,509 | 9,402,563 | ||||||||||||||||
2019 | 500,000 | 3,850,000 | 4,750,026 | 250,004 | 94,859 | 9,444,889 | |||||||||||||||||
Kate C. Burke(6)
|
2021 | 400,000 | 2,275,000 | 1,925,000 | — | 15,455 | 4,615,455 | ||||||||||||||||
Chief Operating Officer and | 2020 | 300,000 | 1,665,000 | 1,285,000 | — | 19,517 | 3,269,517 | ||||||||||||||||
Head of Private Wealth | 2019 | 300,000 | 1,415,000 | 1,035,000 | — | 60,716 | 2,810,716 | ||||||||||||||||
Ali Dibadj(6)(7)
|
2021 | 400,000 | 2,025,000 | 1,675,000 | — | 15,130 | 4,115,130 | ||||||||||||||||
CFO & Head of Strategy | 2020 | 400,000 | 945,000 | 665,000 | 14,880 | 2,024,880 | |||||||||||||||||
Karl Sprules(8)
|
2021 | 400,000 | 1,725,000 | 1,275,000 | — | 42,040 | 3,442,040 | ||||||||||||||||
Head of Global Technology and Operations | |||||||||||||||||||||||
Laurence E. Cranch(9)
|
2021 | 400,000 | 1,025,000 | 575,000 | — | 18,208 | 2,018,208 | ||||||||||||||||
Chief Legal Officer | 2020 | 400,000 | 940,000 | 660,000 | — | 17,958 | 2,017,958 | ||||||||||||||||
2019 | 400,000 | 940,000 | 660,000 | — | 17,708 | 2,017,708 | |||||||||||||||||
John C. Weisenseel(10)
|
2021 | 288,462 | — | — | — | 338,719 | 627,181 | ||||||||||||||||
Former CFO | 2020 | 375,000 | 1,147,500 | 842,500 | — | 16,824 | 2,381,824 | ||||||||||||||||
2019 | 375,000 | 1,147,500 | 842,500 | — | 15,677 | 2,380,677 |
156
|
AllianceBernstein |
Name |
Personal
Use of Car and Driver ($) |
Contributions
to Profit Sharing Plan ($) |
Life
Insurance Premiums ($) |
Financial Planning Assistance ($) |
Other(2)
($)
|
|||||||||||||||
Seth P. Bernstein | 124,725 |
(1)
|
14,500 | 3,564 | — | 24 | ||||||||||||||
Kate C. Burke | — | 14,500 | 955 | — | — | |||||||||||||||
Ali Dibadj | — | 14,500 | 630 | — | — | |||||||||||||||
Karl Sprules | — | 14,500 | 2,610 | 24,930 | ||||||||||||||||
Laurence E. Cranch | — | 14,500 | 3,708 | — | — | |||||||||||||||
John C. Weisenseel | — | — | 1,881 | — | 336,838 |
Name | Grant Date |
All Other
Stock Awards: Number of Shares of Stock or Units (#) |
Grant Date
Fair Value
of Stock
Awards(1)
($)
|
||||||||
Seth P. Bernstein(2)(3)
|
12/10/2021 | 102,572 | 5,225,000 | ||||||||
2/17/2021 | 12,200 | 340,000 | |||||||||
2/17/2021 | 16,357 | 510,000 | |||||||||
Kate C. Burke(2)(3)
|
12/10/2021 | 35,827 | 1,825,000 | ||||||||
2/17/2021 | 1,436 | 40,000 | |||||||||
2/17/2021 | 1,925 | 60,000 | |||||||||
Ali Dibadj(2)(3)
|
12/10/2021 | 30,919 | 1,575,000 | ||||||||
2/17/2021 | 1,436 | 40,000 | |||||||||
2/17/2021 | 1,925 | 60,000 | |||||||||
Karl Sprules(2)
|
12/10/2021 | 25,030 | 1,275,000 | ||||||||
Laurence E. Cranch(2)
|
12/10/2021 | 11,288 | 575,000 | ||||||||
John C. Weisenseel(2)
|
— | — | — |
2021 Annual Report |
157
|
Option Awards | AB Holding Unit and/or EQH Awards | ||||||||||||||||||||||
Name |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or Units of Stock That Have Not Vested (#) |
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested(11)
($)
|
|||||||||||||||||
Seth P. Bernstein(1)(2)(3)(5)
|
43,630 | 21,816 | $ | 18.74 | 2/14/2029 | 299,207 | 14,613,265 | ||||||||||||||||
19,069 | 38,140 | 23.18 | 2/26/2030 | 12,200 | 400,038 | ||||||||||||||||||
16,357 | 536,346 | ||||||||||||||||||||||
Kate C. Burke(4)(5)(6)
|
— | — | — | — | 239,774 | 11,710,573 | |||||||||||||||||
1,436 | 47,086 | ||||||||||||||||||||||
1,925 | 63,121 | ||||||||||||||||||||||
Ali Dibadj(4)(5)(7)
|
— | — | — | — | 46,456 | 2,268,916 | |||||||||||||||||
1,436 | 47,086 | ||||||||||||||||||||||
1,925 | 63,121 | ||||||||||||||||||||||
Karl Sprules(8)
|
— | — | — | — | 228,117 | 11,141,251 | |||||||||||||||||
Laurence E. Cranch(9)
|
— | — | — | — | 44,369 | 2,166,967 | |||||||||||||||||
John C. Weisenseel(10)
|
— | — | — | — | 42,228 | 2,062,429 |
158
|
AllianceBernstein |
AB Holding Option Awards | AB Holding Unit Awards | ||||||||||||||||
Name |
Number of AB Holding Units Acquired on Exercise
(#) |
Value Realized
on Exercise ($) |
Number of AB
Holding Units Acquired on Vesting (#) |
Value Realized
on Vesting ($) |
|||||||||||||
Seth P. Bernstein | — | — | 143,294 | 6,875,884 | |||||||||||||
Kate C. Burke | — | — | 27,237 | 1,360,508 | |||||||||||||
Ali Dibadj | — | — | 5,179 | 258,697 | |||||||||||||
Karl Sprules | — | — | 30,078 | 1,502,400 | |||||||||||||
Laurence E. Cranch | — | — | 145,244 | 7,119,978 | |||||||||||||
John C. Weisenseel | — | — | 142,911 | 7,096,490 |
2021 Annual Report |
159
|
Name and Trigger Event |
Cash
Payments(1)
($)
|
Acceleration of
Restricted
AB Holding Unit
Awards(2)
($)
|
Other
Benefits(3)
($)
|
||||||||
Seth P. Bernstein | |||||||||||
Change in control | — | 14,613,265 | — | ||||||||
Termination by Mr. Bernstein for good reason(4)
|
3,500,000 | 14,613,265 | 18,404 | ||||||||
Termination of Mr. Bernstein's employment by AB other than for Cause or due to Death or Disability (including 2017 Award)(4)(5)(6)
|
5,250,000 | 14,613,265 | 18,404 | ||||||||
Change in control + termination by Mr. Bernstein for good reason or termination of Mr. Bernstein's employment without cause(4)
|
7,000,000 | 14,613,265 | 18,404 | ||||||||
Resignation (complies with applicable agreements and restrictive covenants) under ICAP(2)
|
— | 14,613,265 | — | ||||||||
Death or disability(7)
|
— | 14,613,265 | 18,404 | ||||||||
Kate C. Burke | |||||||||||
Change in control | — | 11,710,573 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Ms. Burke for good reason, or termination due to death or disability | 5,350,000 | 11,710,573 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP; excludes 2018 RSU award)(2)
|
— | 4,296,514 | — | ||||||||
Termination by AB without cause; death or disability (2018 RSU award)(8)
|
— | 3,203,337 | — | ||||||||
Ali Dibadj | |||||||||||
Change in control | — | 2,268,916 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Mr. Dibadj for good reason, or termination due to death or disability | 4,850,000 | 2,268,916 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP(2)
|
— | 2,268,916 | — | ||||||||
Karl Sprules | |||||||||||
Change in control | — | 11,141,251 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Mr. Sprules for good reason, or termination due to death or disability | 4,250,000 | 11,141,251 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP(2)
|
— | 3,727,192 | — | ||||||||
Termination by AB without cause; death or disability (2018 RSU award)(8)
|
— | 3,203,337 | — | ||||||||
Laurence E. Cranch(9)
|
|||||||||||
Retirement | 200,000 | 5,937,430 | — | ||||||||
John C. Weisenseel(9)
|
|||||||||||
Retirement | 93,750 | 5,531,911 | — |
160
|
AllianceBernstein |
Reason for Employment Termination |
Acceleration of EQH Option
and Share Awards ($) |
||||
Seth P. Bernstein | |||||
Death(1)
|
7,030,083 | ||||
Disability(1)
|
7,030,083 | ||||
Involuntary termination (no change in control)(2)
|
1,322,245 | ||||
Change in control (without termination of employment)(3)
|
7,222,006 | ||||
Involuntary termination of employment or termination by
Mr. Bernstein for good reason (no change in control)(3)
|
7,222,006 | ||||
Kate C. Burke | |||||
Death(1)
|
112,388 | ||||
Disability(1)
|
112,388 | ||||
Involuntary termination (no change in control) | — | ||||
Change in control (without termination of employment)(3)
|
48,022 | ||||
Involuntary termination of employment or termination by
Ms. Burke for good reason (no change in control)(3)
|
— | ||||
Ali Dibadj | |||||
Death(1)
|
112,388 | ||||
Disability(1)
|
112,388 | ||||
Involuntary termination (no change in control) | — | ||||
Change in control (without termination of employment)(3)
|
48,022 | ||||
Involuntary termination of employment or termination by
Mr. Dibadj for good reason (no change in control)(3)
|
— |
2021 Annual Report |
161
|
Name |
Fees Earned or Paid in Cash
($) |
Stock
Awards(1)(2)
($)
|
Total
($) |
||||||||
Joan Lamm-Tennant(3)
|
27,011 | 99,200 | 126,211 | ||||||||
Nella Domenici | 100,000 | 170,000 | 270,000 | ||||||||
Daniel Kaye | 95,000 | 170,000 | 265,000 | ||||||||
Kristi Matus | 122,750 | 170,000 | 292,750 | ||||||||
Das Narayandas | 92,000 | 170,000 | 262,000 | ||||||||
Bertram Scott | 95,000 | 170,000 | 265,000 | ||||||||
Charles Stonehill | 125,000 | 170,000 | 295,000 | ||||||||
Todd Walthall(4)
|
28,444 | 112,200 | 140,644 | ||||||||
Ramon de Oliveira(5)
|
110,750 | 170,000 | 280,750 | ||||||||
Paul Audet(6)
|
74,557 | 170,000 | 244,557 |
162
|
AllianceBernstein |
2021 Annual Report |
163
|
Equity Compensation Plan Information
|
||
Plan Category |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted average
exercise price of outstanding options, warrants and rights |
Number of
securities
remaining
available
for future
issuance(1)
|
|||||||||||
Equity compensation plans approved by security holders | 5,774 | $ | 20.12 | 31,890,916 | ||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||
Total | 5,774 | $ | 20.12 | 31,890,916 |
Name and Address of Beneficial Owner |
Amount and Nature of
Beneficial Ownership Reported on Schedule |
Percent of
Class |
||||||||||||
Equitable Holdings(1)
1290 Avenue of the Americas
New York, NY 10104
|
170,121,745 |
(1)
|
62.4 |
(1)
|
164
|
AllianceBernstein |
Name of Beneficial Owner |
Number of AB
Holding Units and Nature of Beneficial Ownership |
Percent of Class | ||||||
Joan Lamm-Tennant(1)
|
1,806 | * | ||||||
Seth P. Bernstein(1)(2)
|
568,491 | * | ||||||
Nella L. Domenici | 13,438 | * | ||||||
Jeffrey J. Hurd(1)
|
— | * | ||||||
Daniel G. Kaye(1)
|
30,283 | * | ||||||
Nick Lane(1)
|
— | * | ||||||
Kristi A. Matus(1)
|
15,844 | * | ||||||
Das Narayandas | 26,249 | * | ||||||
Mark Pearson(1)
|
— | * | ||||||
Bertram L. Scott(1)
|
8,060 | * | ||||||
Charles G.T. Stonehill(1)
|
16,904 | * | ||||||
Todd Walthall | 2,208 | * | ||||||
Kate C. Burke(1)(3)
|
270,142 | * | ||||||
Ali Dibadj(1)(4)
|
151,848 | * | ||||||
Karl Sprules(1)(5)
|
263,027 | * | ||||||
Laurence E. Cranch(1)(6)
|
203,403 | * | ||||||
All directors and executive officers as a group (16 persons)(7)
|
1,571,703 | 1.6% |
2021 Annual Report |
165
|
EQH Common Stock
|
||
Name of Beneficial Owner |
Number of Shares and
Nature of Beneficial Ownership |
Percent of Class | ||||||
Joan Lamm-Tennant | 15,679 | * | ||||||
Seth P. Bernstein(1)
|
173,639 | * | ||||||
Nella L. Domenici | — | * | ||||||
Jeffrey J. Hurd(2)
|
308,322 | * | ||||||
Daniel G. Kaye | 46,359 | * | ||||||
Nick Lane(3)
|
311,090 | * | ||||||
Kristi A. Matus | 13,527 | * | ||||||
Das Narayandas | 2,000 | * | ||||||
Mark Pearson(4)
|
1,359,187 | * | ||||||
Bertram L. Scott | 22,959 | * | ||||||
Charles G.T. Stonehill | 22,515 | * | ||||||
Todd Walthall | — | * | ||||||
Kate C. Burke(5)
|
489 | * | ||||||
Ali Dibadj(5)
|
489 | * | ||||||
Karl Sprules | — | * | ||||||
Laurence E. Cranch | — | * | ||||||
All directors and executive officers as a group (16 persons)(6)
|
2,276,255 | 0.6% |
166
|
AllianceBernstein |
2021 Annual Report |
167
|
168
|
AllianceBernstein |
Parties(1)
|
General Description of Relationship(2)
|
Amounts Received or
Accrued for in 2021 |
|||||||||
Equitable Financial | We provide investment management services and ancillary accounting, valuation, reporting, treasury and other services to the general and separate accounts of Equitable Financial and its insurance company subsidiaries. | $ | 101,312,000 | ||||||||
EQAT and Equitable Premier VIP Trust | We serve as sub-adviser to these open-end mutual funds, each of which is sponsored by a subsidiary of Equitable Holdings. | 28,079,000 | |||||||||
Equitable America | 2,609,000 | ||||||||||
Equitable Holdings | 1,686,000 |
Parties(1)
|
General Description of Relationship |
Amounts Paid or
Accrued for in 2021 |
|||||||||
Equitable Holdings | Distributes certain of our Retail Products; provides Private Wealth Management referrals; sells shares of our mutual funds under Distribution Service and Educational Support agreements; includes us as insured under various insurance policies. | $ | 10,876,000 | ||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Audit fees(1)
|
$ | 6,956 | $ | 6,616 | ||||||||||
Audit-related fees(2)
|
3,580 | 3,188 | ||||||||||||
Tax fees(3)
|
2,221 | 1,222 | ||||||||||||
All other fees(4)
|
6 | 6 | ||||||||||||
Total | $ | 12,763 | $ | 11,032 |
2021 Annual Report |
169
|
PART IV | ||
Exhibit | Description | ||||
3.01 | |||||
3.02 | |||||
3.03 | |||||
3.04 | |||||
3.05 | |||||
3.06 | |||||
3.07 | |||||
3.08 | |||||
4.01 | |||||
10.01 | |||||
10.02 | |||||
10.03 | |||||
10.04 | |||||
10.05 | |||||
10.06 |
170
|
AllianceBernstein |
Exhibit | Description | ||||
10.07 | |||||
10.08 | Amended and Restated Revolving Credit Agreement, dated as of October 13, 2021 (incorporated by reference to Ex. 99.01 to Form 8-K, as filed October 19, 2021) | ||||
10.09 | |||||
10.10 | |||||
10.11 | |||||
10.12 | |||||
10.13 | |||||
10.14 | |||||
10.15 | |||||
10.16 | |||||
10.17 | |||||
10.18 | |||||
10.19 | |||||
10.20 | |||||
10.21 | |||||
10.22 | |||||
10.23 | |||||
10.24 | |||||
10.25 |
2021 Annual Report |
171
|
Exhibit | Description | ||||
10.26 | |||||
10.27 | |||||
10.28 | |||||
10.29 | |||||
21.01 | |||||
23.01 | |||||
31.01 | |||||
31.02 | |||||
32.01 | |||||
32.02 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | ||||
104 | The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL (included in Exhibit 101). | ||||
* | Denotes a compensatory plan or arrangement |
172
|
AllianceBernstein |
Signatures | ||
AllianceBernstein Holding L.P. | ||||||||
Date: February 11, 2022 | By: | /s/ Seth P. Bernstein | ||||||
Seth P. Bernstein | ||||||||
Chief Executive Officer |
Date: February 11, 2022 | /s/ Ali Dibadj | |||||||
Ali Dibadj | ||||||||
Chief Financial Officer & Head of Strategy |
Date: February 11, 2022 | /s/ William R. Siemers | |||||||
William R. Siemers | ||||||||
Controller & Chief Accounting Officer |
2021 Annual Report |
173
|
/s/ Seth P. Bernstein | /s/ Joan Lamm-Tennant | |||||||
Seth P. Bernstein | Joan Lamm-Tennant | |||||||
President and Chief Executive Officer | Chair of the Board | |||||||
/s/ Nella L. Domenici | /s/ Jeffrey J. Hurd | |||||||
Nella L. Domenici | Jeffrey J. Hurd | |||||||
Director | Director | |||||||
/s/ Daniel G. Kaye | /s/ Nick Lane | |||||||
Daniel G. Kaye | Nick Lane | |||||||
Director | Director | |||||||
/s/ Kristi A. Matus | /s/ Das Narayandas | |||||||
Kristi A. Matus | Das Narayandas | |||||||
Director | Director | |||||||
/s/ Mark Pearson | /s/ Bertram L. Scott | |||||||
Mark Pearson | Bertram L. Scott | |||||||
Director | Director | |||||||
/s/ Charles G.T. Stonehill | /s/ Todd Walthall | |||||||
Charles G. T. Stonehill | Todd Walthall | |||||||
Director | Director |
174
|
AllianceBernstein |
Description |
Balance at
Beginning of Period |
Credited to
Costs and Expenses |
Deductions |
Balance at
End of Period |
|||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
For the year ended December 31, 2021 | $ | 311 | $ | — | $ | (17) |
(a)
|
$ | 328 | ||||||||||||||||||||
For the year ended December 31, 2020 | $ | 309 | $ | 100 | $ | 98 |
(b)
|
$ | 311 | ||||||||||||||||||||
For the year ended December 31, 2019 | $ | 395 | $ | 132 | $ | 218 |
(c)
|
$ | 309 |
2021 Annual Report |
175
|
1 Year AllianceBernstein Chart |
1 Month AllianceBernstein Chart |
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