We adjust investment advisory and services fees and other revenues for pass through costs, primarily related to our transfer agent and shareholder servicing fees. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see "Risk Factors" and "Cautions Regarding Forward-Looking Statements" in AB's Form 10-K for the year ended December 31, 2019 and subsequent Forms 10-Q. AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Company announces additional executive appointments for key leadership positions Equitable Holdings, Inc. ( NYSE:EQH ), the financial services holding company comprised of Equitable and AllianceBernstein , today announced the appointment of Robin M. Raju to Chief Financial Officer, effective April 1, pending approval from the Equitable Holdings Board of Directors. Active net inflows of $7.3 billion represented a 5% annualized organic growth rate, excluding low-fee AXA redemptions of $2.2 billion. Within promotion and servicing expenses, the decrease was driven by lower trade execution costs. Sequentially, operating income increased 4% from $210 million in the second quarter of 2020 and the operating margin of 24.1% increased 240 basis points from 21.7% in the second quarter of 2020. Management uses both US GAAP and non-GAAP measures in evaluating our financial performance. Yet AllianceBernstein generates little at-tention because of its partnership structure and thin public float. In Private Wealth, improved sales and net inflows reflected fundings from a diverse client pipeline. NEW YORK--(BUSINESS WIRE)--AXA Equitable Holdings, Inc. (NYSE: EQH), a leading financial services company, comprised of two principal franchises -- AXA Equitable Life and AllianceBernstein -- today announced the appointment of Stephanie Withers as Chief Auditor, effective October 18, 2019.Ms. Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation. Net Revenue, as adjusted, is reduced to exclude all of the company's distribution revenues, which are recorded as a separate line item on the consolidated statement of income, as well as a portion of investment advisory services fees received that is used to pay distribution and servicing costs. This section discusses our third quarter 2020 non-GAAP financial results, compared to the third quarter of 2019 and the second quarter of 2020. 5. We move forward with confidence in our ability to continue to deliver for our clients.". AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets. The public portion of the company, AllianceBernstein Holding (ticker: AB), owns 35%, while Equitable Holdings (EQH), the life insurer, holds the other 65%. Equitable owns two principal businesses: Equitable Financial Life Insurance Co. and a majority (65%) stake in AllianceBernstein Holdings L.P. (AB), a highly respected investment management and research firm. Variable annuities are subject to investment risks, including possible loss of principal invested. (2) Includes certain multi-asset solutions and services and certain alternative investments. Our ending AUM at September 30, 2020 reflects $11.1 billion in outflows resulting from AXA S.A.'s redemption of certain low-fee fixed income mandates, of which $2.2 billion was redeemed during the third quarter. Equitable Holdings said Tuesday that it has arranged for Venerable Holdings to reinsure about 114,000 variable annuities that were sold from 2006 through 2008. AllianceBernstein has been enormously beneficial for Equitable Holdings. Additional information about AllianceBernstein may be found on our website, www.alliancebernstein.com. Our colleagues around the world have proven their resiliency in the face of recent circumstances, strengthening the foundation of our firm. For certain products, based on the distinct arrangements, certain distribution fees are collected by us and passed through to third-party client intermediaries, while for certain other products, we collect investment advisory services fees and a portion is passed through to third-party client intermediaries. The sequential decrease was due to lower customer trading activity in the U.S. and Europe. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately-managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions, and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. We have a team of over 1,000 specially-focused financial professionals, the Retirement Benefits Group, that offers worksite advice to our clients. Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Equitable Holdings, Inc. (NYSE; EQH) comprises two complementary and well-established principal franchises, AXA Equitable Life Insurance Company and AllianceBernstein. Total assets under management as of September 30, 2020 were $630.8 billion, up $30.8 billion, or 5%, from June 30, 2020 and up $38.4 billion, or 7%, from September 30, 2019. Retail gross sales of $17.5 billion decreased sequentially from $19.6 billion. The non-GAAP measures alone may pose limitations because they do not include all of our revenues and expenses. In October 1999, AllianceBernstein Holding L.P. (“AllianceBernstein Holding L.P.”) reorganized by transferring its business and assets to AllianceBernstein L.P., a newly formed private partnership (“AllianceBernstein”). Bernstein continued, "In Retail, we generated net inflows despite gross sales normalizing following record prior periods. (1) Includes index and enhanced index services. Institutional channel third quarter net inflows of $2.1 billion compared to net outflows of $6.4 billion in the second quarter of 2020. AB economically hedged the exposure to market movements by purchasing and holding these investments on its balance sheet. Important information: A long-term financial product designed for retirement purposes, an annuity is essentially a contractual agreement in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. Total amount of AB Holding Units Purchased (1), Total Cash Paid for AB Holding Units Purchased (1), Open Market Purchases of AB Holding Units Purchased (2), Total Cash Paid for Open Market Purchases of AB Holding Units (2). Our institutional pipeline of $16.9 billion continued to reflect strong alternatives and active equity participation, in addition to growth in multi-asset (CRS) strategies. Also, adjusted net revenues exclude investment gains and losses and dividends and interest on employee long-term incentive compensation-related investments. Active equities grew 8% organically, with inflows of $1.7 billion, positive for the 14th straight quarter. Gonzalez joins the Equitable Holdings Management Committee and will report to President and Chief Executive Officer Mark Pearson. A replay of the webcast will be made available beginning approximately one hour after the conclusion of the conference call and will be available on AB's website for one week. The recording of changes in estimates of contingent consideration payable with respect to contingent payment arrangements associated with our acquisitions are not considered part of our core operating results and, accordingly, have been excluded. State or other jurisdiction of incorporation or organization : AXA Equitable Holdings, Inc. Alpha Units Holdings, Inc. AllianceBernstein Corporation Looking forward, we remain ever-focused on client needs, aware that volatility could return given the continued global effects of the COVID-19 pandemic. Sequentially, adjusted operating income of $216 increased 11% from $195 million and the adjusted operating margin of 29.7% in the third quarter of 2020 increased 180 basis points from 27.9%. The conference call will be hosted by Seth P. Bernstein, President and Chief Executive Officer, Ali Dibadj, Head of Finance and Strategy, John C. Weisenseel, Chief Financial Officer, and Kate Burke, Chief Operating Officer. The decrease from prior year was due to reduced customer trading volumes in the U.S. and Europe, partially offset by growth in Asia. Our Protection Solutions business is comprised of our life insurance and employee benefits businesses. Equitable Holdings (NYSE: EQH) is one of America’s leading financial services companies, preparing clients for their financial future since 1859 through two principal franchises, Equitable Life and AllianceBernstein. All such investments had vested as of year-end 2012 and the investments have been delivered to the participants, except for those investments with respect to which the participant elected a long-term deferral. Fluctuation in the value of these investments is recorded within investment gains and losses on the income statement. We also excluded the limited partner interests we do not own. Third Quarter 2020 Earnings Conference Call Information. Equitable Holdings, Inc. (NYSE: EQH) is a financial services holding company comprised of two complementary and well-established principal franchises, Equitable and AllianceBernstein… AB cautions readers to carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; AB undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. (1) The adjusted financial measures represent non-GAAP financial measures. Withers will assume responsibility for leading the Internal Audit function for AXA Equitable Holdings. Third quarter adjusted operating expenses of $511 million decreased 3% from $527 million in the third quarter of 2019, driven by lower promotion and servicing expenses, total employee compensation and benefits and interest on borrowings, partially offset by higher G&A expenses. The conference ID# is 5360089. Adjusted operating income represents operating income on a US GAAP basis excluding (1) real estate charges (credits), (2) the impact on net revenues and compensation expense of the investment gains and losses (as well as the dividends and interest) associated with employee long-term incentive compensation-related investments, (3) our CEO's EQH award compensation, as discussed below, (4) the write-down of an investment, (5) acquisition-related expenses, (6) adjustments to contingent payment arrangements, and (7) the impact of consolidated company-sponsored investment funds. Management believes it is useful to reflect the offset achieved from economically hedging the market exposure of these investments in the calculation of adjusted operating income and adjusted operating margin. Investors should read the prospectus carefully before investing. Annuity and life insurance products are issued by AXA Equitable Life Insurance Company (AXA Equitable / AXA Equitable Life) (NY, NY), which was established in 1859. AXA Equitable Holdings named Ramon de Oliveira as the independent Chairman of the AXA Equitable Holdings and AllianceBernstein Boards of Directors. To listen by telephone, please dial (833) 495-0952 in the U.S. or (409) 216-0498 outside the U.S. 10 minutes before the scheduled start time. Higher investment advisory fees and distribution revenues were partially offset by lower investment gains, Bernstein Research revenues and performance-based fees. As of September 30, 2020, we had 3,869 employees, compared to 3,778 employees as of September 30, 2019 and 3,825 as of June 30, 2020. All guarantees are based on the claims-paying ability of Equitable Financial Life Insurance Company. “ Investment Advisers Act ” – the Investment Advisers Act of 1940, as amended. We adjusted for the operating income impact of consolidating certain company-sponsored investment funds by eliminating the consolidated company-sponsored funds' revenues and expenses and including AB's revenues and expenses that were eliminated in consolidation. The board of directors of EQH granted to Seth P. Bernstein ("CEO") equity awards in connection with EQH's IPO and Mr. Bernstein's membership on the EQH Management Committee. Sequentially, operating expenses increased 3% from $662 million. Higher investment advisory base fees were partially offset by lower Bernstein Research revenues, investment losses compared to investment gains in the prior period and lower performance-based fees. Higher promotion and servicing expenses were partially offset by lower total employee compensation and benefits expense. Our annuity products help our clients accumulate wealth and prepare for their retirement income needs. Third quarter adjusted operating income of $216 million increased 8% from $200 million in the third quarter of 2019, and the adjusted operating margin of 29.7% increased 220 basis points from 27.5%. Annuity and life insurance products are issued by AXA Equitable Life Insurance Company (AXA Equitable / AXA Equitable Life) (NY, NY), which was established in 1859. Please note, however, that these non-GAAP measures are provided in addition to, and not as a substitute for, any measures derived in accordance with US GAAP and they may not be comparable to non-GAAP measures presented by other companies. We expect these redemptions to total approximately $14 billion, with the remaining redemptions expected to be completed by the end of the first quarter of 2021. Within G&A, the decrease is attributable to lower technology and office-related expenses, partially offset by higher professional fees. Within G&A, the decrease was driven by lower technology costs and office-related expense, partially offset by higher professional fees. Private Wealth channel third quarter net inflows of $0.3 billion compared to net outflows of $0.7 billion in the second quarter of 2020. Net Flows for Three Months Ended 9/30/2020: Total net inflows were $3.1 billion in the third quarter, compared to net outflows of $3.3 billion in the second quarter of 2020, and net inflows of $8.1 billion in the prior year third quarter. We are presenting both earnings information derived in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and non-GAAP, adjusted earnings information in this release. Promotion and servicing expenses increased due to higher distribution related payments and amortization of deferred sales commissions, partially offset by lower travel and entertainment and marketing expenses. We adjust for the revenue impact of consolidating company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds' revenues and including AB's fees from such consolidated company-sponsored investment funds and AB's investment gains and losses on its investments in such consolidated company-sponsored investment funds that were eliminated in consolidation. (2) The remainder related to purchases of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. He is currently President and Chief Executive Officer of Equitable Holdings, which comprises Equitable Financial Life Insurance Company, a leading financial-services firm, and AB, a leading investment-management and research firm. Higher distribution revenues and investment advisory fees were partially offset by lower net dividend and interest income, Bernstein Research revenues and investment gains. ", Bernstein concluded, "Our firm saw solid AUM growth in the third quarter, with global equity and fixed income markets both providing returns in the mid-to-high single digits. Sequentially, net revenues of $900 million increased from $871 million. Higher investment advisory fees were partially offset by investment losses compared to investment gains in the prior year and lower Bernstein Research revenues. US GAAP Consolidated Statement of Income (Unaudited), Amortization of deferred sales commissions, Trade execution, marketing, T&E and other, Net income (loss) of consolidated entities attributable to non-controlling interests, Net income attributable to AB Unitholders, AB Holding L.P. (The Publicly-Traded Partnership), Equity in Net Income Attributable to AB Unitholders, Additional Equity in Earnings of Operating Partnership (1). This represents 4.2 percent ownership of the company. Parties may access the conference call by either webcast or telephone: The presentation management will review during the conference call will be available on AB's Investor Relations website shortly after the release of Third Quarter 2020 financial and operating results on October 22, 2020. However, beginning in the fourth quarter of 2019, real estate charges (credits), while excluded in the period in which the charges (credits) are recorded, are included ratably over the remaining applicable lease term. Management will review Third Quarter 2020 financial and operating results during a conference call beginning at 8:00 a.m. (EDT) on Thursday, October 22, 2020. EQ Financial Consultants (formerly, Equico Securities, Inc.) was merged into AXA Advisors, LLC on Sept. 20, 1999. G&A included the write-off of one-time legal fees incurred for products which will not be launched. These fees do not affect operating income, but they do affect our operating margin. An audio replay of the conference call will also be available for one week. The partnership units, now around $30, trade inexpensively at 11 times ... • “AB Holding” means AllianceBernstein Holding L.P., a Delaware limited partnership. As of September 30, 2020, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 35.5% of AllianceBernstein and Equitable Holdings ("EQH"), directly and through various subsidiaries, owned an approximate 65.3% economic interest in AllianceBernstein. To access the audio replay, please call (855) 859-2056 in the US, or (404) 537-3406 outside the US, and provide the conference ID #: 5360089. “ Investment Company Act Sales and net inflows of active equities remained robust in both Retail and Institutional, and our Private Client channel generated sales growth and net inflows. Equitable Holdings, Inc. ownership in AB / AllianceBernstein Holding L.P. 2019-03-25 - Equitable Holdings, Inc. has filed an SC 13D/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 4,011,194 shares of AllianceBernstein Holding L.P. (US:AB). Promotion and servicing expenses increased due to higher distribution related payments, partially offset by lower trade execution costs. (1) To reflect higher ownership in the Operating Partnership resulting from application of the treasury stock method to outstanding options. Please note that 100% of AB Holding's distributions to foreign investors is attributable to income that is effectively connected with a United States trade or business. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The compensation expense associated with these awards has been excluded from our non-GAAP measures because they are non-cash and are based upon EQH's, and not AB's, financial performance. Equitable Holdings, Inc. (formerly The Equitable Life Assurance Society of the United States and AXA Equitable Life Insurance Company, and also known as The Equitable) is an American financial services and insurance company that was founded in 1859 by Henry Baldwin Hyde.In 1991, French insurance firm AXA acquired majority control of The Equitable. The obligations of Equitable Financial and Equitable America are backed solely by their own claims-paying abilities. Operating Income, Margin and Net Income Per Unit. Mark Pearson was appointed a Director of AllianceBernstein (AB) in 2011. Real estate charges (credits) incurred have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. As such, we exclude these fees from adjusted net revenues. The write-down of the investment in the first quarter of 2020 has been excluded due to its non-recurring nature and because it is not part of our core operating results. Higher total employee compensation and benefits expense was partially offset by lower promotion and servicing and G&A expenses. Third quarter Bernstein Research revenues of $99 million decreased 3% compared to the prior year third quarter and decreased 13% sequentially. Mr. de Oliveira has held a variety of board positions with subsidiaries of the company since 2011, and currently serves on the AXA Equitable Holdings and Adjusted operating margin allows us to monitor our financial performance and efficiency from period to period without the volatility noted above in our discussion of adjusted operating income and to compare our performance to industry peers on a basis that better reflects our performance in our core business. Equitable Holdings, Inc. ( NYSE: EQH ) is a financial services holding company comprised of two complementary and well-established principal franchises, Equitable and AllianceBernstein . Institutional gross sales of $8.3 billion decreased sequentially from $8.8 billion. Third quarter operating expenses of $683 million increased 1% from $675 million in the third quarter of 2019. Equitable Holdings, Inc. (NYSE; EQH) comprises two complementary and well-established principal franchises, AXA Equitable Life Insurance Company and AllianceBernstein. We distribute our variable annuity products through our affiliated retail sales force and a wide network of approximately 600 third-party firms, reaching more than 100,000 financial professionals. Bernstein Research revenues declined versus both prior periods, as higher retail participation led to lower institutional trading volumes and market volatility declined from this year's second quarter. Variable annuities (including Equitable's Structured Capital Strategies) and mutual funds are offered by prospectus, which contains more complete information including investment objectives, risks, charges, and expenses, and available through Financial Professionals or the issuing company. Annuity and life insurance products are issued by AXA Equitable Life Insurance Company (AXA Equitable / AXA Equitable Life) (NY, NY), which was established in 1859. ” – AllianceBernstein Corporation (Delaware corporation), the general partner of AB and AB Holding and a subsidiary of AXA Equitable Holdings, and, where appropriate, ACMC, LLC, its predecessor. Prior to 2009, a significant portion of employee compensation was in the form of long-term incentive compensation awards that were notionally invested in AB investment services and generally vested over a period of four years. We believe offsetting distribution revenues and certain investment advisory services fees is useful for our investors and other users of our financial statements because such presentation appropriately reflects the nature of these costs as pass-through payments to third parties that perform functions on behalf of our sponsored mutual funds and/or shareholders of these funds. Sequentially, adjusted net revenues increased 4% from $699 million. Our life insurance products are designed to help our clients protect and transfer their wealth. 4. Certain statements provided by management in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We distribute our investment management products and solutions through three main client channels — Institutional, Retail and Bernstein Private Wealth Management — and distribute our institutional research products and solutions through Bernstein Research Services. non-controlling interests, RECONCILIATION OF GAAP EPU TO ADJUSTED EPU, ($ Thousands except per Unit amounts, unaudited), Impact on net income of AB non-GAAP adjustments, Diluted Net Income per Holding Unit, GAAP basis, Adjusted Diluted Net Income per Holding Unit, AB Notes to Consolidated Statements of Income and Supplemental Information(Unaudited). As of September 30, 2020, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 35.5% of AllianceBernstein and Equitable Holdings ("EQH"), directly and through various subsidiaries, owned an approximate 65.3% economic interest in AllianceBernstein.