QUOTE AND NEWS
Reuters  Sep 26  Comment 
Anheuser-Busch InBev officials sold shares in the company worth more than 9 million euros over the past two weeks, further undermining speculation the world's largest brewer is...
StreetInsider.com  Sep 26  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/General+Electric+%28GE%29+Updates+on+Timing+to+Close+GE+Money+Bank+AB+Transaction/9862939.html for the full story.
Japan Today  Sep 25  Comment 
Swedish fashion retailer Hennes & Mauritz AB says it is to expand its business further over the coming year to build on the popularity of its collections. CEO Karl-Johan Persson says the company is in a "very intensive investment phase" and...
newratings.com  Sep 25  Comment 
STOCKHOLM (dpa-AFX) - Shares of Hennes & Mauritz AB or H&M (HNNMY.PK, HMRZF.PK, HEN.L) declined around 4 percent in the early morning trading in Stockholm after the Swedish apparel retailer reported Thursday lower margin in its third quarter....
DailyFinance  Sep 25  Comment 
Regulatory News: Today, Husqvarna Group hosts its Capital Markets Day (CMD). The theme of the day is ‘Profitability & focus first, then expansion and profitable growth’, and includes presentations by the Group’s...
MarketWatch  Sep 25  Comment 
Sweden’s Hennes & Mauritz AB said sales in its fiscal fourth quarter have got off to a slow start as a result of warm weather in most markets.
The Times of India  Sep 24  Comment 
Ikea India, a subsidiary of Swedish furniture retailer Ikea AB, on Wednesday signed an MoU with the Telangana government for establishing its store in the state.
guardian.co.uk  Sep 24  Comment 
Mining groups Fresnillo and Kazakhmys climb, while Vodafone rises on rural report After two days of falls, with the FTSE 100 recording its biggest one day decline since March on Tuesday, investors are still in a cautious mood. With a quieter news...
The Economic Times  Sep 24  Comment 
At 09:25 a.m.; Educomp Solutions was trading 7.3 per cent higher at Rs 34.90. It hit a low of Rs 34.75 and a high of Rs 35.75 in trade today.
Reuters  Sep 22  Comment 
(This story was originally published in IFR, A Thomson Reuters publication)




 

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.

Competition

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).

References

  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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