QUOTE AND NEWS
SeekingAlpha  Jul 18  Comment 
Investment AB Kinnevik (OTCPK:KINNF) Q2 2014 Earning Conference Call July 18, 2014 4:00 AM ET Executives Lorenzo Grabau – Chief Executive Officer Mikael Larsson – Chief Financial Officer Torun Litzén – Director-Corporate...
Motley Fool  Jul 18  Comment 
Despite the drop in revenue and earnings, there was some good news in Arcam's second-quarter results.
Bloomberg  Jul 18  Comment 
Ericsson Shares Jump as Sales, Margins Beat Estimates Ericsson AB, the biggest maker of wireless networks, reported sales and profit margins that topped analysts’ estimates,...
SeekingAlpha  Jul 17  Comment 
Sandvik AB (OTCPK:SDVKF) Q2 2014 Earnings Conference Call July 17, 2014 04:00 AM ET Executives Magnus Larsson - Head, IR Olof Faxander - CEO Mats Backman - CFO Analysts Andre Kukhnin - Credit Suisse Markus Almerud -...
guardian.co.uk  Jul 17  Comment 
Societe Generale highlight deals SAB could do, but say it would still remain bid target After pouring cold water on the idea of SABMiller fending off a possible bid from AB InBev by merging with Diageo, Societe Generale has now looked at...
DailyFinance  Jul 15  Comment 
Medivir (STO:MVIR-B) Medivir AB (OMX: MVIR) announces that the Food and Drug Administration (FDA) has assigned a Priority Review designation to the supplemental New Drug Application (sNDA) for the use of once-daily Olysio...
newratings.com  Jul 15  Comment 
STOCKHOLM (dpa-AFX) - Shares of Hennes & Mauritz AB (HNNMY.PK, HMRZF.PK, HEN.L), popularly referred to as H&M, increased around 2 percent in early morning trading in Stockholm after the Swedish apparel retailer Tuesday reported sales growth in the...
DailyFinance  Jul 14  Comment 
Regulatory News: Bong Ljungdahl Sverige AB (STO:BONG) ”Bong’s large restructuring programme, which was launched at the end of 2013, is now being implemented throughout the Group,” says Stéphane Hamelin, Bong’s...
Financial Times  Jul 13  Comment 
Takeover expectations intensifying as investors weigh the potential benefits of brewing mega merger against the wrangles to secure consolidation
Clusterstock  Jul 11  Comment 
FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors. Ten Reasons Why You Should Stay Active In Stocks (The AllianceBernstein Blog) On the AllianceBernstein Blog, Sharon...




 

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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