QUOTE AND NEWS
The Economic Times  5 hrs ago  Comment 
AB Nuvo Ltd is a 'SELL' call with a target of Rs 1686 and a stop loss of Rs 1726.
Wall Street Journal  Feb 10  Comment 
Fed up with losing share to liquor companies for five years straight, Anheuser-Busch InBev and MillerCoors are trying to cash in on the popularity of cocktails.
The Economic Times  Feb 8  Comment 
Gary Kirsten played a major role in turning the dream of winning the World Cup on home soil real in 2011 as coach of the Indian team.
Reuters  Feb 3  Comment 
Associated British Foods said it would write down the value of its investment in Vivergo Fuels Ltd by 98 million pounds ($147 million) due to falling crude oil and...
Benzinga  Jan 28  Comment 
Electrolux AB (OTC: ELUXY) posted a net profit in the fourth quarter. The company posted quarterly net profit of 970 million Swedish kronor ($3.8 billion), versus a year-ago net loss of 987.00 million kronor. However, analysts were expecting a...
TechCrunch  Jan 23  Comment 
Last year we covered how emerging markets like Africa were exploding with classified ad sites as the population comes online and begins the process of getting into marketplaces. Saltside Technologies is deep into this game, and last year raised...
The Hindu Business Line  Jan 22  Comment 
Violators of traffic rules should be made to attend ‘corrective classes’ in addition to paying a fine for violation, according to AB Ibrahim, Deputy Commissioner of Dakshina Kannada distric...
Wall Street Journal  Jan 22  Comment 
Swedish investment giant Industrivärden AB said that Chairman Sverker Martin-Löf—one of the most powerful men in Swedish business—is stepping down early, amid questions over corporate governance.
The Economic Times  Jan 22  Comment 
AB Nuvo Ltd is a 'BUY' call with a target of Rs 1925 and a stop loss of Rs 1814




 

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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