Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| The team has grown to more than 75 professionals, facilitated by continued investment and strong retention |
| But from an average cash flow perspective, median cash flow perspective, we're around $50 million of media EBITDA and that, combined with our sector focus and the continuity of the team, gives us, we believe, a well-entrenched position in that market |
| We drove continued market share gains in US retail, led by municipal SMA and taxable fixed income |
| We also saw strong cross-border fixed income flows |
| We made good progress in our key strategic initiatives, launching 10 active ETFs, now 12 in total at $1.5 billion in assets under management, receiving approval for our wholly-owned China fund management company license, and growing our relationship with Equitable in support of our private markets platform, which Matt Bass will touch on further |
| So, strong confidence in sales, hopefully contributing to positive flows with the uncertainty of the institutional side in a narrow set of equity strategies |
| Switching over to more traditional, as I think we've also disclosed, we have acquired a very talented team in Europe focused on global growth and has an excellent European capability as well |
| So, we feel very good about the sales prospects |
| So, a number of our strong engines are humming |
| Strong retail gross sales of $21 billion increased 47% year-over-year and 24% sequentially, driven by both fixed income and equities |
| Net inflows were $1.3 billion as we continued to gain share in fixed income, up 14% annualized organically |
| As you know, the Asia extra Pan taxable fixed income had a very strong momentum as well |
| China/Asia strategy, sentiment is not great, obviously, in China, but we think there's strong demand ultimately and we plan to launch a number of strategies over the course of the next two to three years, which would both reflect equities as well as fixed income |
| We have good momentum starting the year on the sales front |
| And that, I think, creates a solid foundation for our continued growth in the insurance space |
| Private Wealth had strong gross sales of $18.6 billion with net inflows of $1.1 billion, the third straight year of organic growth |
| Most credit risk sectors posted strong relative returns to government bonds with developed markets high-yield up 13.8% and emerging market local currency bonds up 12.7% |
| AB's fixed income performance remains strong with 75% of assets outperforming over the one-year period, 73% over the three year and 77% over the five year |
| For many of the same reasons that bonds rallied, equity markets also registered strong gains in the fourth quarter with the S&P 500 up 12% |
| So I would simply say that we're very pleased that she's arrived and Bill will transition after this quarter |
| Our research process remains robust, and our views are fundamentally driven |
| And then finally, we have a strong position in LatAm with the pension systems, whether it's in Mexico with afores or with the Chilean pension systems, and that tends to be a pretty strong demand for equities, including emerging markets, given their bias towards emerging markets |
| Relative to peers, we continue to outperform the Morningstar peer group over the longer term with 62% and 68% of our equity assets outperforming over the three and five-year periods, respectively |
| We have a very dominant position in large cap growth that continues to be a strong area for us |
| And so I think she's well-positioned to take the role forward |
| US retail grew organically for the fifth consecutive year with $9 billion of net inflows, up 11% in 2023 and up 9% on average over the last five years |
| We're seeing that most definitively offshore and the very strong growth that we've had in Asia |
| And in fact, that strength, I think, reflects both increased comfort with extending duration and having higher yields switch between AIP and American Income and Global High Yield range between 5% and 7% today |
| We continue to remain very strong in U.S |
| I think retail in the US, I think we're quite well positioned with high net worth individuals, who are focused on the municipal marketplace, the tactics that marketplace we've been building share, as you know, for years, and we think we have a differentiated product proposition in how we build these separately managed accounts, which is where we see all the growth there in ETFs that I think will really drive pretty strong demand over the course of this year and hopefully into next |
| Statement |
|---|
| Full year revenues of $386 million declined 7%, reflecting declines in customer trading activity across all regions as a result of market conditions |
| Full year revenues of $386 million declined by 7% as institutional trading activity remain constrained |
| Fourth quarter gross sales were $28.3 billion, down $2.6 billion from the year ago period |
| Full year 2023 operating income declined by 1%, margins of 28.2% declined by 70 basis points and earnings per unit of $2.69 declined 9% year-over-year |
| Fourth quarter adjusted operating margin of 29.2% decreased 80 basis points year-on-year, while full year 2023 operating margin of 28.2% decreased 70 basis points from 2022 |
| Our fourth quarter compensation ratio of 47.7% came in below our expectations, reflecting the fourth quarter market rally and continued discipline in our compensation process |
| In a challenging year for active managers, gross sales of $101 billion led to firm-wide net outflows of $7 billion or 1.1% attrition |
| Full year GAAP EPU of $2.34 decreased by 13% year-over-year |
| Institutional sales of $11.8 billion declined from $32 billion last year as we compared against last year's $16 billion in custom target date fundings |
| Our institutional channel had gross sales of $3 billion, down versus prior periods with last year's fourth quarter, including $6.4 billion from custom target date sales |
| We had some recent performance challenges, and it's very hard to predict those outflows given it tends to be individual mandates and lumpy |
| Obviously, there will be some continued pressure on the institutional side |
| Both government bonds and credit risk assets finished 2023 on a high note as bond yields fell sharply with most central banks ending their hiking cycles |
| Our pipeline was $12 billion at quarter end, down $500 million sequentially |
| And while we do see the economy slowing, we do think that we're in a soft land bank for the first time that I can remember |
| The fourth quarter fee rate of 39.6 basis points decreased 4% year-over-year, driven by mix, reflecting organic growth into lower fee rate fixed income products and a full quarter impact from last December's large, low-fee custom target date inflow |
| Given market conditions, we plan to accrue at a 49.0% compensation ratio in the first quarter of 2024, below last year's first quarter level of 49.5% and may adjust further throughout the year |
| When combined with stock selection, our performance continued to lag the Mega-Cap tilted benchmarks, with 26% of equity assets outperforming over the one-year period, 45% over the three year and 42% outperforming over the five year period |
| We saw modest improvement in the US, though key global markets remain subdued |
| One of the building debates for private credit is just sort of the reentry of banks, so the leverage lending and the high-yield market has a potential impact to volume and/or pricing |
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