QUOTE AND NEWS
DailyFinance  Apr 4  Comment 
Regulatory News: This statement is made by the Board of Directors (the ”Board”) of Meda AB (publ) (”Meda”)(STO:MEDAA) pursuant to the Securities Markets Act and/or the Financial Instruments Trading act. ...
newratings.com  Apr 4  Comment 
CANONSBURG (dpa-AFX) - Mylan Inc. (MYL) is looking at buying Swedish drug maker Meda AB (MDABF.PK), according to media reports, citing people familiar with the matter. Executives at Mylan, which has a $18.5 billion market capitalization, have...
Wall Street Journal  Apr 4  Comment 
Mylan is looking at buying Swedish drug maker Meda AB, according to people familiar with the matter, in what would be the pharmaceutical industry's latest tie-up that could lower a U.S. company's taxes.
Forbes  Apr 2  Comment 
Joseph Gerard Paul, Chief Investment Officer, US Value Equities Fund, AllianceBernstein LP
Cloud Computing  Apr 2  Comment 
JDA® Software Group, Inc., today announced that SJ AB, Sweden’s state-owned and largest rail operator, is set to deploy the JDA® Demand and JDA® Rail Price Optimizer solutions to improve its competitive...
DailyFinance  Apr 1  Comment 
Regulatory News: The shareholders of AarhusKarlshamn AB (publ)(STO:AAK) are hereby invited to attend the Annual General Meeting to be held on Thursday 8 May 2014 at 2.00 p.m. at the premises of Europaporten Kongresscenter,...
newratings.com  Apr 1  Comment 
LOEWEN (dpa-AFX) - Belgian brewer Anheuser-Busch InBev, known as AB InBev (BUD, AHBIF.PK) said that it completed the $5.8 billion acquisition of South Korean brewer Oriental Brewery, returning Oriental Brewery to the AB InBev portfolio after AB...
DailyFinance  Mar 28  Comment 
SKF (STO:SKFB) (STO:SKFA) (Pink Sheets:SKFRY) (LSE:SKFB) The Annual General Meeting of Aktiebolaget SKF, parent company of the SKF Group, was held today under the chairmanship of Mr Leif Östling. The income statements...
DailyFinance  Mar 28  Comment 
CALGARY, AB -- (Marketwired) -- 03/28/14 -- ChitrChatr Communications Inc. (OTC Pink: CHICF) (PINKSHEETS: CHICF) ("ChitrChatr"), a world leader in developing and marketing the Comprehensive Universal Unified Communications Platform ("CUUCP"),...
DailyFinance  Mar 28  Comment 
Regulatory News: Companies in the Volvo Group (STO:VOLVA)(STO:VOLVB) have signed an agreement to sell commercial real estate to companies jointly owned by Hemfosa Fastigheter AB and AB Sagax, and to companies owned by AB...




 

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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