What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-11 compared with 2021-02-11 · 146 added, 149 removed, 382 unchanged (44% of the section changed)

7 unchanged sentences

We use “ emerging markets ” in this Form 10-K to refer to countries included in the Morgan Stanley Capital International (“ MSCI ”) emerging markets index, which are, as of December 31, 2021:

Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

We provide diversified investment management, research and related services globally to a broad range of clients through our three buy-side distribution channels:

1 unchanged sentence

See “Distribution Channels” in this Item 1 for additional information.

As of December 31, 2020, 2019 and 2018, our AUM were approximately $686 billion, $623 billion and $516 billion, respectively, and our net revenues were approximately $3.7 billion, $3.5 billion and $3.4 billion, as of December 31, 2020, 2019 and 2018, respectively.

As of December 31, 2021, 2020 and 2019, our AUM were approximately $779 billion, $686 billion and $623 billion, respectively, and our net revenues were approximately $4.4 billion, $3.7 billion and $3.5 billion, respectively.

EQH (our parent company) and its subsidiaries, whose AUM consist primarily of fixed income investments, is our largest client.

Our EQH affiliates represented approximately 17%, 19% and 18% of our AUM as of December 31, 2021, 2020 and 2019, and we earned approximately 3% of our net revenues from services we provided to them in each of those years.

Also, AXA and its subsidiaries represented approximately 3%, 5% and 6% of our AUM as of December 31, 2020, 2019 and 2018, and we earned approximately 2% of our net revenues from services we provided to them in each of those years.

Management (AUM)

See “Distribution Channels” below and “Assets Under Management” and “Net Revenues” in Item 7 for additional information regarding our AUM and net revenues.

1 unchanged sentence

For additional information about our 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 .

2021 Annual Report 1

Our high-quality, in-depth research is the foundation of our business.

2 unchanged sentences

Corporate Responsibility

At AB, we constantly are working to become a better firm.

To us, this means giving back to the communities in which we work through our firm-wide philanthropic initiative, AB Gives Back, and reducing our environmental footprint by increasing our use of “green buildings,” such as our new headquarters in Nashville, Tennessee.

Additionally, by promoting diversity and inclusion, we are afforded different perspectives and ways of thinking, which can lead to better outcomes for our clients ( See Diversity and Inclusion below ).

At AB, we pursue insight that unlocks opportunity.

This is our firm's purpose.

Together with our firm's mission and values, which we have described below , our purpose forms the foundation of responsibility at AB.

AB's mission is to help our clients define and achieve their investment goals, explicitly stating what we do each day to unlock opportunity for our clients.

As an active manager, our differentiated insights drive our ability to deliver alpha and design innovative investment solutions.

ESG and climate issues are key elements in forming insights and in presenting potential risks and opportunities that can impact the performance of the companies and issuers in which we invest and the portfolios we build.

Our values provide a framework for the behaviors and actions that deliver on our purpose and mission.

Values align our actions.

Each value emerges from our firm's character, yet also is aspirational, and each value challenges us to become a better, more responsible version of AB:

• We invest in each other, meaning that we have a strong organizational culture in which diversity is celebrated and mentorship is critical to our success.

• We strive for distinctive insight, meaning that we collaboratively identify creative solutions to clients' economic, ESG and climate-related investment challenges through our expertise in a wide range of investment disciplines.

• We speak with courage and conviction, which informs how we engage with our AB colleagues and issuers.

• We act with integrity, which is the bedrock of our relationships and drives us to avoid activities that could create potential conflicts of interest or distract us from our singular focus to provide asset management and research to our clients.

As noted above , we consistently challenge ourselves to become a better version of AB.

This means, in part, giving back to the communities in which we work through our firm-wide philanthropic initiative, AB Gives Back, and reducing our environmental footprint by increasing our use of “green buildings,” such as our new corporate headquarters in Nashville, Tennessee.

Also, striving to be more responsible gives us a richer perspective for evaluating other companies.

As longtime fundamental investors with a strong research heritage, we have integrated ESG considerations into various processes.

As longtime fundamental investors with a strong research heritage, we consider ESG factors in various processes.

This helps us make fully informed risk/return assessments and draw insightful investment conclusions.

2 unchanged sentences

And, we continue to invest in technology and innovation to further enable our investment teams to formalize their ESG evaluations and share insights from our engagements with other companies.

COVID-19 has caused vast suffering and disruption to the global economy, while also causing significant volatility in the financial markets through much of 2020.

As a firm, AB has adapted rapidly to protect our employees' health and welfare, support our communities and ensure we can continue managing clients' investments safely and securely.

Furthermore, COVID-19 has become a prominent theme in engagement:

Additionally, AB has prioritized our employees' health and welfare throughout the COVID-19 pandemic while ensuring that our firm has continued to meet our fiduciary obligations and provide exceptional client service and thoughtful investment advice.

Furthermore, COVID-19 is a prominent theme in engagement:

it not only impacts business models but also highlights corporate ESG practices.

We are advocating that issuers be responsible corporate citizens, and we are working to better understand opportunities and threats created by the pandemic.

We provide additional information in this regard in our corporate responsibility report, which is entitled "Advancing Responsible Investing" and can be found under “Corporate Responsibility - Overview” on www.alliancebernstein.com.

We are advocating that issuers be responsible corporate citizens, and we are working to better understand opportunities and threats, including supply chain disruptions and inflationary pressures, fueled by the pandemic.

We provide additional information in this regard in our corporate responsibility report, which is entitled "Advancing Responsible Investing" and can be found under “Responsibility - Overview” on www.alliancebernstein.com.

AllianceBernstein

Investment Services

6 unchanged sentences

Our AUM by client domicile and investment service as of December 31, 2021, 2020 and 2019 were as follows:

By Client Domicile ($ in billions):

By Investment Service ($ in billions):

AUM by Client Domicile

($ in billions)

AUM by Investment Service

($ in billions)

2021 Annual Report 3

Distribution Channels

We offer to our institutional clients, which include private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as 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 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.

3 unchanged sentences

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.

Also, AXA and its subsidiaries combined AUM accounted for approximately 5%, 10% and 11% of our institutional AUM as of December 31, 2020, 2019 and 2018, respectively, and approximately 12%, 11% and 11% of our institutional revenues for 2020, 2019 and 2018, respectively.

No single institutional client other than EQH, AXA and their respective subsidiaries accounted for more than approximately 1% of our net revenues for the year ended December 31, 2020.

As of December 31, 2020, 2019 and 2018, Institutional Services represented approximately 46%, 45% and 48%, respectively, of our AUM, and the fees we earned from providing these services represented approximately 14% of our net revenues for each of those years.

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.

As of December 31, 2021, EQH and its subsidiaries combined AUM accounted for:

Approximately

of our institutional AUM.

Approximately

of our institutional revenues.

EQH and Subsidiaries as a % of our Institutional AUM EQH and Subsidiaries as a % of our Institutional Revenues

AllianceBernstein

As of December 31, 2021, 2020 and 2019, Institutional Services represented approximately 43%, 46% and 45%, respectively, of our AUM, and the fees we earned from providing these services represented approximately 13%, 14% and 14%, respectively, of our net revenues for each of those years.

Our AUM and revenues are as follows:

1 unchanged sentence

(by Investment Service)

December 31, % Change

Years Ended December 31 % Change

2021 2020 2019 2021-20 2020-19

1 unchanged sentence

Equity Actively Managed $ 73,726 $ 60,067 $ 44,628 22.7 % 34.6 %

$ 17,435 $ 13,861 $ 9,629 25.8 % 44.0 %

Global & Non-US 42,632 30,767 23,335 38.6 31.8

Total 60,067 44,628 32,964 34.6 35.4

Equity Passively Managed (1)

28,995 27,873 25,300 4.0 10.2

Global & Non-US 4,067 3,951 3,174 2.9 24.5

Total 27,873 25,300 20,655 10.2 22.5

Total Equity 102,721 87,940 69,928 16.8 25.8

Fixed Income Taxable:

47,409 41,241 35,210 15.0 17.1

Global & Non-US 55,312 46,699 34,718 18.4 34.5

Total 164,048 157,717 148,069 4.0 6.5

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

1,271 1,209 1,046 5.1 15.6

Global & Non-US — — — — —

Total 1,271 1,209 1,046 5.1 15.6

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

110,312 116,833 108,714 (5.6) 7.5

Global & Non-US 46,960 48,570 50,301 26.1 9.6

Total 84 89 88 (5.6) 1.1

Total Fixed Income 157,272 165,403 159,015 (4.9) 4.0

7 unchanged sentences

Affiliated - EQH 84,096 91,396 78,506 (8.0) 16.4

AXA 16,448 27,136 25,948 (39.4) 4.6

Non-affiliated (3)

Total $ 315,598 $ 282,690 $ 246,279 11.6 14.8

252,984 224,202 204,184 12.8 9.8

Total $ 337,080 $ 315,598 $ 282,690 6.8 11.6

(1) Includes index and enhanced index services.

(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.

(3) As of 12/31/2021, AXA is no longer considered an affiliated party, as such, AXA-related AUM has been reclassified to non-affiliated in 2020 and 2019.

2021 Annual Report 5

Revenues from Institutional Services

4 unchanged sentences

Equity Actively Managed $ 240,049 $ 170,802 $ 160,421 40.5 % 6.5 %

$ 66,118 $ 62,252 $ 60,465 6.2 % 3.0 %

Global & Non-US 104,684 98,169 103,763 6.6 (5.4)

Total 170,802 160,421 164,228 6.5 (2.3)

Equity Passively Managed (1)

6,119 5,851 5,838 4.6 0.2

Global & Non-US 2,174 1,992 1,880 9.1 6.0

Total 5,851 5,838 5,593 0.2 4.4

Total Equity 246,168 176,653 166,259 39.4 6.3

Fixed Income Taxable:

97,522 69,795 66,098 39.7 5.6

Global & Non-US 148,646 106,858 100,161 39.1 6.7

Total 194,026 204,087 208,670 (4.9) (2.2)

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

1,355 1,309 1,217 3.5 7.6

Global & Non-US — — — — —

Total 1,355 1,309 1,217 3.5 7.6

Fixed Income Passively Managed (1)

105 82 107 28.0 (23.4)

Global & Non-US 35 21 28 66.7 (25.0)

Total 82 107 77 (23.4) 39.0

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)

124,004 118,924 118,345 4.3 0.5

Global & Non-US 92,061 90,647 100,373 1.6 (9.7)

Total 14,108 13,215 12,708 6.8 4.0

Total Fixed Income 216,065 209,571 218,718 3.1 (4.2)

6 unchanged sentences

Global & Non-US 299,886 270,859 239,939 10.7 12.9

Consolidated company-sponsored investment funds — — (372) — 100.0

Total 586,058 511,800 478,964 14.5 6.9

3 unchanged sentences

Affiliated - EQH 105,415 90,101 82,413 17.0 9.3

$ 90,101 $ 82,413 $ 78,011 9.3 5.6

AXA 62,999 55,135 53,745 14.3 2.6

Non-affiliated (4)

1 unchanged sentence

Total $ 587,017 $ 512,914 $ 480,144 14.4 6.8

________________________________________________________________________________________________________________________

(1) Includes index and enhanced index services.

1 unchanged sentence

(3) Includes certain multi-asset solutions and services not included in equity or fixed income services.

(4) Amounts in 2019 and 2018 have been reclassified to conform to the current period's presentation.

We provide investment management and related services to a wide variety of individual retail investors, both in the U.S.

and internationally, through retail mutual funds we sponsor, mutual fund sub-advisory relationships, separately-managed account programs ( see below ), and other investment vehicles (“ Retail Products and Services ”).

(4) As of 12/31/2021, AXA is no longer considered an affiliated party, as such, AXA-related AUM has been reclassified to non-affiliated in 2020 and 2019.

AllianceBernstein

We provide investment management and related services to a wide variety of individual retail investors globally through retail mutual funds we sponsor, mutual fund sub-advisory relationships, separately-managed account programs ( see below ), and other investment vehicles (“ Retail Products and Services ”).

We distribute our Retail Products and Services through financial intermediaries, including broker-dealers, insurance sales representatives, banks, registered investment advisers and financial planners.

19 unchanged sentences

The mutual funds we sub-advise for EQH and its subsidiaries constitute our largest retail client.

EQH and its subsidiaries accounted for approximately 14%, 14% and 16% of our retail AUM as of December 31, 2020, 2019 and 2018, respectively, and approximately 1%, 2% and 2% of our retail net revenues for the years ended December 31, 2020, 2019 and 2018, respectively.

Also, AXA and its subsidiaries accounted for approximately 2%, 2% and 3% of our retail AUM as of December 31, 2020, 2019 and 2018, respectively, and approximately 1%, 1% and 2% of our retail net revenues for the years ended December 31, 2020, 2019 and 2018, respectively.

EQH and its subsidiaries accounted for approximately 14% of our retail AUM as of December 31, 2021, 2020 and 2019 and approximately 1%, 1% and 2% of our retail net revenues for the years ended December 31, 2021, 2020 and 2019, respectively.

HSBC was responsible for approximately 4%, 6% and 14% of our open-end mutual fund sales in 2021, 2020 and 2019, respectively.

1 unchanged sentence

Most open-end U.S.

Funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares (“ Rule 12b-1 Fees ”).

The open-end U.S.

4 unchanged sentences

Fund AUM, as of December 31, 2021, totaled $130 billion, or 41% of retail AUM, as compared to $110 billion, or 41%, as of December 31, 2020, and $103 billion, or 43%, as of December 31, 2019.

2021 Annual Report 7

Our Retail Services represented approximately 41%, 39% and 39% of our AUM as of December 31, 2021, 2020 and 2019, respectively, and the fees we earned from providing these services represented approximately 50%, 49% and 46% of our net revenues for the years ended December 31, 2021, 2020 and 2019, respectively.

2 unchanged sentences

(by Investment Service)

December 31, % Change

Years Ended December 31 % Change

2021 2020 2019 2021-20 2020-19

1 unchanged sentence

Equity Actively Managed $ 154,200 $ 106,866 $ 81,622 44.3 % 30.9 %

$ 79,569 $ 57,125 $ 41,450 39.3 % 37.8 %

Global & Non-US 27,297 24,497 19,475 11.4 25.8

Total 106,866 81,622 60,925 30.9 34.0

Equity Passively Managed (1)

40,821 35,995 34,683 13.4 3.8

Global & Non-US 7,058 7,530 6,697 (6.3) 12.4

Total 35,995 34,683 29,355 3.8 18.2

Total Equity 195,021 142,861 116,305 36.5 22.8

Fixed Income Taxable:

152,106 108,506 84,278 40.2 28.7

Global & Non-US 42,915 34,355 32,027 24.9 7.3

Total 84,654 88,408 60,442 (4.2) 46.3

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

23,167 20,706 16,403 11.9 26.2

Global & Non-US 35 44 42 (20.5) 4.8

Total 23,202 20,750 16,445 11.8 26.2

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)

46,361 36,137 34,830 28.3 3.8

Global & Non-US 71,223 79,950 83,153 (10.9) (3.9)

Total 8,231 8,825 8,929 (6.7) (1.2)

Total Fixed Income 117,584 116,087 117,983 1.3 (1.6)

7 unchanged sentences

Affiliated - EQH 44,417 36,765 34,448 20.8 6.7

AXA 6,150 5,680 5,471 8.3 3.8

Non-affiliated (3)

Total $ 265,340 $ 239,166 $ 180,769 10.9 32.3

275,501 228,575 204,718 20.5 11.7

Total $ 319,918 $ 265,340 $ 239,166 20.6 10.9

(1) Includes index and enhanced index services.

(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.

(3) As of 12/31/2021, AXA is no longer considered an affiliated party, as such, AXA-related AUM has been reclassified to non-affiliated in 2020 and 2019.

AllianceBernstein

Revenues from Retail Services

4 unchanged sentences

Equity Actively Managed $ 766,578 $ 508,973 $ 436,617 50.6 % 16.6 %

$ 346,538 $ 283,461 $ 235,611 22.3 % 20.3 %

Global & Non-US 162,435 153,156 149,995 6.1 2.1

Total 508,973 436,617 385,606 16.6 13.2

Equity Passively Managed (1)

14,773 14,347 16,173 3.0 (11.3)

Global & Non-US 5,343 6,994 7,861 (23.6) (11.0)

Total 14,347 16,173 16,762 (11.3) (3.5)

Total Equity 781,351 523,320 452,790 49.3 15.6

Fixed Income Taxable:

556,398 355,542 292,640 56.5 21.5

Global & Non-US 224,953 167,778 160,150 34.1 4.8

Total 534,164 506,849 463,242 5.4 9.4

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

70,661 65,375 58,824 8.1 11.1

Global & Non-US 73 99 132 (26.3) (25.0)

Total 70,734 65,474 58,956 8.0 11.1

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

115,248 101,825 98,310 13.2 3.6

Global & Non-US 500,018 515,302 486,118 (3.0) 6.0

Total 12,229 12,105 12,895 1.0 (6.1)

Total Fixed Income 615,266 617,127 584,428 (0.3) 5.6

12 unchanged sentences

Affiliated - EQH 28,334 27,130 27,737 4.4 (2.2)

AXA 23,762 23,293 24,946 2.0 (6.6)

Non-affiliated (3)

Total $ 1,811,948 $ 1,619,832 $ 1,494,445 11.9 8.4

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

(1) Includes index and enhanced index services.

(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.

(3) As of 12/31/2021, AXA is no longer considered an affiliated party, as such, AXA-related AUM has been reclassified to non-affiliated in 2020 and 2019.

2021 Annual Report 9

Private Wealth Management

We offer to our private wealth clients, which include high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, separately-managed accounts, hedge funds, mutual funds and other investment vehicles (“ Private Wealth Services ”).

We manage these accounts pursuant to written investment advisory agreements, which generally are terminable at any time or upon relatively short notice by any party, and may not be assigned without the client's consent.

We partner with our clients, embracing innovation and independent research to address increasingly complex challenges.

Our clients include high-net-worth individuals and families who have created generational wealth as successful business owners, athletes, entertainers, corporate executives and private practice owners.

We also provide investment and wealth advice to foundations and endowments, family offices and other entities.

Our flexible and extensive investment platform offers a range of solutions, including separately-managed accounts, hedge funds, mutual funds and other investment vehicles, tailored to meet each distinct client's needs.

Our investment platform is complimented with a wealth platform that includes complex tax and estate planning, pre-IPO and pre-transaction planning, multi-generational family engagement, and philanthropic advice in addition to tailored approaches to meeting the unique needs of emerging wealth and multi-cultural demographics (" Private Wealth Services ").

We manage accounts pursuant to written investment advisory agreements, which generally are terminable at any time or upon relatively short notice by any authorized party, and may not be assigned without the client's consent.

For information about our 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 .

4 unchanged sentences

(by Investment Service)

December 31, % Change

Years Ended December 31 % Change

2021 2020 2019 2021-20 2020-19

1 unchanged sentence

Equity Actively Managed $ 59,709 $ 50,854 $ 50,934 17.4 % (0.2) %

$ 28,135 $ 26,840 $ 22,504 4.8 % 19.3 %

Global & Non-US 22,719 24,094 19,809 (5.7) 21.6

Total 50,854 50,934 42,313 (0.2) 20.4

Equity Passively Managed (1)

1,764 666 174 164.9 % n/m

Global & Non-US 25 32 42 (21.9) (23.8)

Total 666 174 155 n/m 12.3

Total Equity 61,473 51,520 51,108 19.3 0.8

Fixed Income Taxable:

35,014 28,776 26,982 21.7 6.6

Global & Non-US 26,459 22,744 24,126 16.3 (5.7)

Total 14,515 12,170 11,176 19.3 8.9

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

25,749 25,102 24,129 2.6 4.0

Global & Non-US 15 15 15 — —

Total 25,764 25,117 24,144 2.6 4.0

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

36,166 35,042 32,685 3.2 7.2

Global & Non-US 5,561 5,432 4,974 2.4 9.2

Total 195 372 415 (47.6) (10.4)

Total Fixed Income 41,727 40,474 37,659 3.1 7.5

6 unchanged sentences

Total $ 121,572 $ 104,985 $ 101,059 15.8 3.9

________________________________________________________________________________________________________________________

(1) Includes index and enhanced index services.

(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.

AllianceBernstein

Revenues from Private Wealth Services

4 unchanged sentences

Equity Actively Managed $ 584,455 $ 487,899 $ 510,911 19.8 % (4.5) %

$ 262,885 $ 267,671 $ 274,320 (1.8) % (2.4) %

Global & Non-US (3)

225,014 243,240 240,332 (7.5) 1.2

Total 487,899 510,911 514,652 (4.5) (0.7)

Equity Passively Managed (1)

1,053 144 117 n/m 23.1

Global & Non-US 60 190 254 (68.4) (25.2)

Total 1,113 334 371 n/m (10.0)

4,780 1,113 334 n/m n/m

Total Equity 589,235 489,012 511,245 20.5 (4.3)

Fixed Income Taxable:

325,154 263,938 267,815 23.2 (1.4)

Global & Non-US 264,081 225,074 243,430 17.3 (7.5)

Total 71,575 63,964 61,392 11.9 4.2

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

123,871 122,350 118,811 1.2 3.0

Global & Non-US 81 97 109 (16.5) (11.0)

Total 123,952 122,447 118,920 1.2 3.0

Fixed Income Passively Managed (1)

2,634 2,891 4,475 (8.9) (35.4)

Global & Non-US (3)

Total Fixed Income 205,429 198,418 190,886 3.5 3.9

167,402 160,666 156,909 4.2 2.4

Total 2,891 4,475 5,468 (35.4) (18.2)

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

2 unchanged sentences

Global & Non-US 71,524 76,065 68,728 (6.0) 10.7

76,065 68,728 51,839 10.7 32.6

Total Alternatives/Multi-Asset Solutions 320,956 185,234 191,944 73.3 (3.5)

2 unchanged sentences

Global & Non-US 373,632 338,891 346,135 10.3 (2.1)

Consolidated company-sponsored investment funds — — (1,214) — 100.0

Total 1,115,619 872,664 894,075 27.8 (2.4)

2 unchanged sentences

Total $ 1,126,142 $ 882,672 $ 904,505 27.6 (2.4)

________________________________________________________________________________________________________________________

(1) Includes index and enhanced index services.

(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.

(3) Amounts in 2019 have been reclassified to conform to the current period's presentation.

2021 Annual Report 11

Bernstein Research Services

We offer high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options to institutional investors, such as pension fund, hedge fund and mutual fund managers, and other institutional investors (“ Bernstein Research Services ”).

We serve our clients, which are based in the United States and in other major markets around the world, through our trading professionals, who are primarily based in New York, London and Hong Kong, and our sell-side analysts, who provide fundamental company and industry research along with quantitative research into securities valuation and factors affecting stock-price movements.

We offer high-quality fundamental and quantitative research and trade execution services in equities and listed options to institutional investors, such as mutual fund and hedge fund managers, pension funds and other institutional investors (" Bernstein Research Services") .

We serve our clients, which are based in the United States and in other major markets around the world, through our trading professionals, who are primarily based in New York, London and Hong Kong, and our research analysts, who provide fundamental company and industry research along with quantitative research into securities valuation and factors affecting stock-price movements.

Additionally, we provide equity capital markets services to issuers of publicly-traded securities, primarily in initial public offerings and follow-on offerings, generally acting as co-manager in such offerings.

We earn revenues for providing investment research to, and executing brokerage transactions for, institutional clients.

These clients compensate us principally by directing us to execute brokerage transactions on their behalf, for which we earn commissions, and to a lesser but increasing extent, by paying us directly for research through commission sharing agreements or cash payments.

Bernstein Research Services accounted for approximately 12%, 12% and 13% of our net revenues as of December 31, 2020, 2019 and 2018, respectively.

Bernstein Research Services accounted for approximately 10%, 12% and 12% of our net revenues for the years ended December 31, 2021, 2020 and 2019, respectively.

For information regarding trends in fee rates charged for brokerage transactions, see “Risk Factors” in Item 1A .

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The intellectual capital of our employees is collectively the most important asset of our firm, so the long-term sustainability of our firm is heavily dependent on our people.

We are constantly focused on:

We are keenly focused on:

• fostering an inclusive culture by incorporating diversity and inclusion in all levels of our business;

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Further, our firm’s role as a fiduciary is embedded in our culture.

As a fiduciary, our firm’s primary objective is to help our clients reach their financial goals.

Also, our Board of Directors and committees of the Board, particularly our Compensation and Workplace Practices Committee, provide oversight into various human capital matters, including emerging human capital management risks and strategies to mitigate our exposure to those risks.

As a fiduciary, our firm’s primary objective is to act in our clients' best interests and help them reach their financial goals.

Also, our Board of Directors (the " Board ") and committees of the Board, particularly our Compensation and Workplace Practices Committee, provide oversight into various human capital matters, including emerging human capital management risks and strategies to mitigate our exposure to those risks.

Furthermore, our Board and Board committees evaluate the overall effectiveness of our social responsibility policies, goals and programs and recommend changes to management as necessary.

These collaborative efforts contribute to the overall framework that guides how AB attracts, retains and develops a workforce that supports our values and strategic initiatives.

AllianceBernstein

Talent Acquisition

AB seeks to achieve excellence in business and investment performance by recruiting and hiring a workforce with diversity of thought, backgrounds and experiences.

We believe that diverse and inclusive teams generate better ideas and reach more

balanced decisions.

We believe that diverse and inclusive teams generate better ideas and reach more balanced decisions.

We seek to leverage the unique backgrounds of our employees to meet the needs of a broad range of clients and engage with the communities in which we operate.

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We have a sizable group of internal human capital associates focused on recruiting, and we have implemented various human capital initiatives to develop and provide for a balanced workforce.

Additionally, we offer internship programs for students to work in positions across functional areas of the firm;

an important part of our college recruitment strategy is to convert a high percentage of our interns into full-time employees.

Additionally, we offer internship programs for students to work in positions across functional areas of the firm, and an important part of our college recruitment strategy is to convert a high percentage of our interns into full-time employees.

Employee Engagement

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As such, AB offers many opportunities for our employees to volunteer in the communities in which we serve, including our firm-wide philanthropic initiative, AB Gives Back.

Other initiatives in support of these objectives include a five-year refresh award for employees that mark a five-year anniversary are eligible to receive two additional weeks off.

Other initiatives in support of these objectives include a five-year refresh award, whereby employees receive two additional weeks off for every five years of service.

In addition, we utilize AB Voice, a periodic survey designed to measure employee satisfaction and engagement, allowing us to identify and address performance gaps.

Diversity and Inclusion

As noted previously, we believe that diverse and inclusive teams generate better ideas and best serve the needs of our clients.

As such, we strive to cultivate a dynamic, diverse and inclusive workplace where employees feel challenged and valued for their contributions.

We offer leadership development programs that cater to the needs of various groups, including an African American Leadership program, an Asian Leadership program, a Women's leadership program and a variety of Employee Resource Groups (" ERGs ").

These ERG programs, which are central to our diversity and inclusion efforts, share a common purpose, interest and backgrounds and accelerate the advancement of our employees from traditionally underrepresented groups.

Our ERG groups are spread across seven categories, including AB Asians, Black ERG, Family Matters, AB Veterans, AB Out (LGBTQ), Synergy (Women) and Adelante (Latinx).

These groups serve as a source of inclusion, and they help to support our acquisition of diverse talent.

Our senior leadership is committed to our diversity and inclusion efforts and is active in a variety of coalitions pledging to advance diversity and inclusion.

Additionally, the Firm has implemented several measures to help ensure accountability for contributing to our diversity and inclusion initiatives.

For i nstance, our senior business leaders have diversity and inclusion objectives embedded in their annual performance goals.

We continue to believe that diverse and inclusive teams generate better ideas and best serve the needs of our clients.

The events of the last two years have provided an unforeseen yet unique opportunity to reflect, adapt and broaden our Diversity & Inclusion (“ D&I ”) strategy.

D&I continues to be a key strategic priority for AB and our ongoing commitment to embed it across all facets of the firm has further reinforced our company values.

It has also allowed for a more purposeful approach to engagement with our people, our clients and the communities in which we operate.

Also, our firm's community engagement efforts have been further integrated under the D&I umbrella.

Under the new structure, we are better able to streamline and formalize the process for assessing corporate partnerships and philanthropic giving through the lens of D&I, allowing for a more cohesive overall strategy.

We have enhanced our talent attraction and retention approach to position ourselves as an employer of choice and invest in the development of our people.

We have developed a diverse talent strategy with a goal of developing a deeper understanding of the needs of diverse talent and also equipping managers with the necessary tools to effectively manage an increasingly diverse workforce.

The strategy includes incorporating the concept of inclusive leadership into the firm-wide leadership development curriculum and enhancing our exit interview process for diverse talent by conducting in-person interviews, which will better enable us to detect trends and mitigate attrition.

Our people remain our top priority, especially during these times of uncertainty.

Over the course of the last year, there has been a continued focus on education and deepening engagement across all pillars of our strategy to include Employee Resource Groups (" ERGs "), corporate partnerships, and the overall experience at AB.

ERGs have been a major proponent of these efforts by cultivating spaces for courageous conversations, encouraging professional development and personal wellness, and raising awareness for various underrepresented communities.

As we continue to seek opportunities to further our commitment to diversity, equity and inclusion, we are leveraging best practices from industry peers.

Our D&I journey continues to evolve;

addressing racial and gender equity, increasing access to diverse talent and monitoring client trends remain top priorities.

2021 Annual Report 13

Compensation and Benefits

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Long-term incentive compensation awards generally are denominated in restricted AB Holding Units.

We utilize this structure to foster a stronger sense of ownership and align the interests of our employees directly with the interests of our Unitholders and indirectly with the interests of our clients, as strong performance for our clients generally contributes directly to increases in assets under management and improved financial performance for the firm.

Furthermore, we offer health and welfare, 401(k) profit-sharing and other benefits programs to all eligible employees.

We utilize this structure to foster a stronger sense of ownership and align the interests of our employees directly with the interests of our Unitholders and indirectly with the interests of our clients, as strong performance for our clients generally contributes directly to increases in AUM and improved financial performance for the firm.

Furthermore, we offer to all eligible employees health and welfare, 401(k) profit-sharing and other benefits programs, including a flexible in-office work schedule that permits working remotely two days weekly.

(and elsewhere, although benefits may differ by jurisdiction):

• We provide employee wages that are competitive and consistent with employee positions, skill levels, experience, knowledge and geographic location;

• We engage nationally recognized outside compensation and benefits consulting firms to independently evaluate the effectiveness of our executive compensation and benefit programs, as well as consulting services relating to the amount and form of compensation paid to employees other than executives, and to provide benchmarking against our peers;

• We engage nationally recognized compensation and benefits consulting firms to independently evaluate the effectiveness of our executive compensation and benefit programs, as well as consulting services relating to the amount and form of compensation paid to employees other than executives, and to provide benchmarking against our peers;

• We provide merit-based and performance-based annual increases and incentive compensation, which are communicated to employees at the time of hiring and documented through our talent management process as part of our annual review procedures and upon internal transfer and/or promotion;

• The firm makes benefits available to all eligible employees, including health insurance, paid and unpaid leaves, a retirement plan, and life and disability/accident coverage.

We also offer a variety of voluntary benefits that allow

employees to select the options that meet their needs, including flexible time-off, telemedicine, paid parental leave, adoption assistance, prescription savings solutions, Veterans' Health Administration coverage in U.S.

We also offer a variety of voluntary benefits that allow employees to select the options that meet their needs, including flexible time-off, telemedicine, paid parental leave, adoption assistance, prescription savings solutions, Veterans' Health Administration coverage in U.S.

medical plans, a personalized wellness program and a financial wellness program.

Health and Safety

The health and safety of our employees is our highest priority and is evident in our response to the COVID-19 pandemic around the globe.

Our ongoing response to the COVID-19 global pandemic demonstrates how highly we value the health and safety of our employees.

At the initial onset of COVID-19 during the first quarter of 2020, we quickly responded in the various jurisdictions where we operate, including the U.S., EMEA (including the U.K., Luxembourg, France and other jurisdictions), Hong Kong, Shanghai, Singapore and Taiwan.

We implemented business continuity measures, including travel restrictions and a work-from-home requirement for almost all personnel (other than a relatively small number of employees whose physical presence in our offices was considered critical), which has remained in place (except in our Asia offices, most of which have reopened), to ensure operating continuity for all critical functions.

Since then, working in the office generally has been voluntary, with mandatory in-office participation occurring only at certain times when COVID-19 has ebbed significantly in the communities in which we operate.

Throughout the pandemic, we have conscientiously ensured operating continuity for all critical functions.

We also instituted a confidential notification process for any employee who tests positive for COVID-19 or has been exposed to someone else who has tested positive.

As the COVID-19 crisis has continued to evolve since the lockdown in the first quarter, certain key functions of the business, such as Risk Management, Business Continuity, Finance and Human Capital, have maintained constant communication and monitored the evolution of the pandemic to keep our employees safe and advised of key developments.

As the COVID-19 crisis has continued to evolve since the lockdown in the first quarter of 2020, certain key functions of the business, such as Risk Management, Business Continuity, Finance and Human Capital, have maintained constant communication and monitored the evolution of the pandemic to keep our employees safe and advised of key developments.

Additionally, we continue to monitor communications from the World Health Organization and the U.S.

Centers for Disease Control and Prevention to ensure we have current information.

We have also instituted various other protocols in response to the COVID-19 pandemic, such as increased cleaning protocols, modifying workspaces to allow for social distancing and requiring masks to be worn in all office locations when social distancing cannot be maintained.

As of December 31, 2020, our firm had 3,929 full-time employees, representing a 3.1% increase compared to the end of 2019.

As of December 31, 2020, our employees reflected the following by gender and region:

Centers for Disease Control and Prevention, and in the third quarter of 2021 engaged an epidemiologist on a consulting basis, to ensure we have current and accurate information.

We have also instituted various other protocols in response to the COVID-19 pandemic, such as increased cleaning protocols, masking requirements where permitted by local law and testing protocols for large gatherings.

As of December 31, 2021, our firm had 4,118 full-time employees, compared to 3,929 full-time employees as of December 31, 2020, representing a 4.8% increase.

AllianceBernstein

As of December 31, 2021, our employees reflected the following characteristics and locations:

Female % Female Male % Male Grand Total % of Total

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Grand Total (1)

1,578 38 % 2,528 62 % 4,106 100 %

(1) The table above only reflects employees who have self-reported as male or female and as such may not reconcile to our total of 4,118 full-time employees.

In connection with our establishing 1,250 roles in Nashville, Tennessee, we have relocated many of our employees from our New York City and White Plains, New York, locations.

Employees whose roles are in-scope for the move, but who are not relocating, will receive a separation package.

Employees whose roles are in-scope for the move, but who are not relocating, receive a separation package.

We expect layoffs to continue on a rolling basis until all in-scope roles are filled in Nashville.

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Possible sanctions that may be imposed on us include the suspension of individual employees, limitations on engaging in business for specific periods, the revocation of the registration as an investment adviser or broker-dealer, censures and fines.

2021 Annual Report 15

AB, AB Holding, the General Partner and five of our subsidiaries (Sanford C.

Bernstein & Co., LLC (“ SCB LLC ”), AB Broadly Syndicated Loan Manager LLC, AB Custom Alternative Solutions LLC, AB Private Credit Investors LLC and W.P.

Stewart Asset Management LLC) are registered with the SEC as investment advisers under the Investment Advisers Act.

Stewart Asset Management Ltd.) are registered with the SEC as investment advisers under the Investment Advisers Act.

Additionally, AB Holding is an NYSE-listed company and, accordingly, is subject to applicable regulations promulgated by the NYSE.

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In October 2000, our two legacy firms, Alliance Capital and Bernstein, combined, bringing together Alliance Capital’s expertise in growth equity and corporate fixed income investing and its family of retail mutual funds, with Bernstein’s expertise in value equity investing, tax-exempt fixed income management, and its Private Wealth Management and Bernstein Research Services businesses.

AllianceBernstein

As of December 31, 2021, the condensed ownership structure of AB is as follows (for a more complete description of our ownership structure, see “Principal Security Holders” in Item 12 ):

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Competition is an important risk that our business faces and should be considered along with the other factors we discuss in “Risk Factors” in Item 1A .

2021 Annual Report 17

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business