The Economic Times  Oct 1  Comment 
"The macros seem to be improving by the day, but the global selloff refuses to go away. We do not think it will go away in a jiffy."
Reuters  Oct 1  Comment 
A $70 billion debt package being arranged to fund Anheuser-Busch InBev's takeover of SABMiller still leaves the world's largest brewer with a tricky balancing act...
Yahoo  Sep 30  Comment 
BRUSSELS/LONDON (Reuters) - A $70 billion debt package being arranged to fund Anheuser-Busch InBev's (ABI.BR) takeover of SABMiller (SAB.L) still leaves the world's largest brewer with a tricky balancing act in satisfying a range of shareholder...
BBC News  Sep 29  Comment 
The mega-breweries face a rising threat from craft beers
Clusterstock  Sep 29  Comment 
(Reuters) - Anheuser-Busch InBev SA is in talks with lenders including Bank of America and Banco Santander to raise as much as $70 billion as it prepares to approach rival SABMiller Plc for a takeover, Bloomberg reported. AB InBev is working...
The Hindu Business Line  Sep 28  Comment 
The Foreign Investment Promotion Board will take up 31 foreign direct investment (FDI) proposals, including of Aditya Birla Nuvo, Cipla, Sun Pharma Advanced Research and HDFC Capital Advisors, on...
newratings.com  Sep 28  Comment 
VIENNA (dpa-AFX) - TeliaSonera AB (0H6X.L, TLSNY.PK) announced the company is combining the units Group Commercial and Group Technology into a new unit. The company said the search for an Executive Vice President and head of the combined unit has...
newratings.com  Sep 28  Comment 
LOEWEN (dpa-AFX) - Belgian brewer Anheuser-Busch InBev NV, known as AB InBev (BUD, AHBIF.PK) could bid 70 billion pounds or about $106 billion for SABMiller Plc. (SAB.L, SABMRY.PK) this week, the Sunday Times reported. Over recent days the...
Yahoo  Sep 27  Comment 
Anheuser-Busch InBev SA (ABI.BR) could bid about $106 billion for SABMiller (SAB.L) within days, with an opening offer expected as early as Monday morning, the Sunday Times reported. SABMiller, the maker of Peroni and Grolsch, is said to be...
Times Online  Sep 27  Comment 
There were plenty of shoulders shrugged in the City two weeks ago when AB InBev, the world’s biggest brewer, confirmed...


AllianceBernstein L.P. (NYSE: AB) is an asset management firm with over $480 billion in assets under management (AUM). Over 97% of AB's investments are in stocks and bonds.

The world's second largest insurance company AXA (headquartered in France) owns over 60% stake of AB.[1] The company's foreign ownership lets it avoid the 35% federal corporate tax, and instead pay minimal dues of 7.5% for an unincorpated business. However, AB's partnership status also means that it must distribute nearly all of its earnings to its fund holders, limiting the growth potential of the firm.

More than half of AB's AUM is invested abroad, and the international focus of the company helped to shield the company from the 2007 credit crunch.

Corporate Overview

Business Financials

In 2009, AB posted total revenues of $2.94 billion, a slight decrease from its 2008 total revenues of $3.57 billion. As a result of the decrease in revenues, AB's net income was adversely affected. Between 2008 and 2009, AB's net income declined from $244.7 million in 2008 to $167 million in 2009.

Business Segments

AB's AUM and revenue fall under the following categories:

Institutional Investment Services (60.5% of 2009 AUM)[2]

Institutional Investment Services refer to products and services provided for corporate or governmental investors using diversified investments into instruments like hedge funds, mutual funds, and investment trusts. At the end of 2009, total AUM for this segment was $300 billion.[2]

Retail Services (24.4% of 2009 AUM)[2]

Retail Services are designed for the individual investor as their funds are spread among a variety of investment vehicles like those of AB's Institutional Investment Services. Such vehicles include mutual funds and closed end funds, which offer a set number of shares for its funds. At the end of 2009, this segment had total AUM of $120.7 billion.[2]

Private Client Services (15.1% of 2009 AUM)

This segment includes AB's investment interactions with private clients. At the end of 2009, this segment had total AUM of $74.8 billion.[2]

Key Trends and Forces

Strong international exposure boosts AB business

AllianceBernstein is still largely an American firm, as 60% of its clients live in the U.S.[3] However, both individual and institutional business are becoming more and more international. In fact, the company invested 40% ($320 billion)[4] of their AUM overseas and 61% of their investment services ($489 billion)[3] were for clients (mainly institutional) outside the US. International markets are providing key business for AB, especially as the firm pushes through the 2007 credit crunch.


AllianceBernstein competes with many firms throughout the greater financial services industry. Some of its direct competitors include BlackRock (BLK), Legg Mason (LM), Eaton Vance (EV), and T. Rowe Price Group (TROW).


  1. AB 2007 10-K pg. 18  
  2. 2.0 2.1 2.2 2.3 2.4 AB 10-K 2009 Item 1 Pg. 6
  3. 3.0 3.1 AB 2007 10-K pg. 3-4  
  4. 2008 AB Conference Call
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