QUOTE AND NEWS
newratings.com  Jul 17  Comment 
FAIRFIELD (dpa-AFX) - European home appliances giant Electrolux AB (0MDT.L, 0GQ1.L, ELUXY.PK) Friday reported a profit for the second quarter, compared to a loss last year, with significant sales growth. The company said all its six business areas...
Reuters  Jul 14  Comment 
Volvo has bought Polestar Performance AB, a company that takes the classic Swedish cars and turns them into high-performance versions for the road.
The Economic Times  Jul 9  Comment 
Britain's top equity index moved further away from this week's six-month lows, lifted by well-received results from Associated British Foods and Barratt Developments.
Reuters  Jul 7  Comment 
Ambev SA , Brazil's largest drinks company, said on Tuesday it had bought craft brewer Colorado for an undisclosed sum, continuing its new strategy of buying premium brands amid...
Reuters  Jul 1  Comment 
The United States filed a lawsuit on Wednesday to stop Sweden's Electrolux AB , which owns the Frigidaire, Kenmore and Tappan brands, from buying General Electric Co's ...
Reuters  Jul 1  Comment 
The United States filed a lawsuit on Wednesday to stop Sweden's Electrolux AB , which owns the Frigidaire, Kenmore and Tappan brands, from buying General Electric Co's appliance business, the Justice Department said in a statement.
newratings.com  Jul 1  Comment 
SOEDERTAELJE (dpa-AFX) - Swedish automotive company Scania AB (SVKBY.PK) said that it has appointed Andreas Renschler as the new Chairman of the Board of the company. Andreas Renschler is a member of the Board of Management (Vorstand)...
Automotive World  Jun 30  Comment 
Andreas Renschler has been appointed as the new Chairman of the Board of Scania AB. Other new names in the Board of Directors are Per Hallberg, Annika Falkengren and Markus S. Piëch. At the statutory meeting of the Board of Directors on 26 June,...
Automotive World  Jun 30  Comment 
Due to a conversion of shares from Series A to Series B in accordance with the Company’s Articles of Association, AB SKF confirms the following. As per 30 June the Company’s share capital amounts to SEK 1,138,377,670 and the total number of...




 

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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