AllianceBernstein Holding L.P. (NYSE:AB) Q3 2023 Earnings Call Transcript

John Dunn : Got you. And then, we don’t always have to talk about passive, but can you remind us what the dynamics of that side are? Is it more tactical for investors and is there a potential for that money to come back relatively quickly?

Onur Erzan : So on passive, particularly in the core client segments, lower complexity, lower value clients, we have some model portfolios that takes advantage of active passive model portfolios, which is quite common in the industry. I mean, I would say that is much more structural than cyclical. So that I would highlight as nothing new in that regard. I think the real – I think fee acceleration to expect would be money market funds, cash, and some of the direct indexing type money going into higher risk, higher return strategies with higher fees. I think that’s how I would characterize the major migration that would be expected when rates stabilize and when the risk appetite is further back.

John Dunn : But just to give a bit more color, we do have institutional clients who turn to us, whether it’s an accommodation or as part of a broader set of actions we’re taking on their behalf to provide passive. And it’s episodic, so I wouldn’t suggest to you there’s something imminent there. It’s just that it does come and go.

John Dunn : Right. Thanks very much.

Operator: And there are no further questions at this time. Mr. Griffin, I’ll turn the call back over to you.

Mark Griffin : Terrific. Thanks everyone for joining our call. We appreciate your time today. If you have any additional questions, please feel free to reach out to Investor Relations. Have a great day.