QUOTE AND NEWS
newratings.com  5 hrs ago  Comment 
WASHINGTON (dpa-AFX) - AllianceBernstein Holding L.P. (AB) reported that second-quarter equity in net income attributable to AllianceBernstein Unitholders rose to $43.23 million or $0.44 per unit from $40.62 million or $0.40 per unit in the...
SeekingAlpha  5 hrs ago  Comment 
The following audio is from a conference call that will begin on July 30, 2014 at 08:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »
DailyFinance  Jul 28  Comment 
Regulatory News: Medivir AB (OMX: MVIR) announces that results from the phase II COSMOS clinical study were published July 28 in The Lancet, demonstrating that 92 percent of genotype 1 chronic hepatitis C virus adult...
Motley Fool  Jul 26  Comment 
Sales of Arcam's new Q20 could see liftoff as aerospace companies begin using 3-D printing for more production applications.
The Hindu Business Line  Jul 25  Comment 
Pune-based Shivang Technocrats Pvt Ltd has inked an alliance with Lareda Mekan AB, Sweden, to manufacture a range of automotive products including pedal assemblies, fuel filler necks, sheet metal...
StreetInsider.com  Jul 24  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Perrigo+%28PRGO%29+Confirms+AB+Therapeutic+Equivalent+Rating+From+The+FDA+For+Its+Testosterone+Gel+1.0%25/9687681.html for the full story.
DailyFinance  Jul 22  Comment 
Regulatory News: Cision AB (STO:CSN): April-June Total revenue SEK 211 million (234) Organic growth 2% (-6%) Operating profit* SEK 25 million (18) Operating margin*...
DailyFinance  Jul 21  Comment 
LUXEMBOURG, LUXEMBOURG -- (Marketwired) -- 07/21/14 -- Northland Resources S.A. (OSLO: NAUR)(FRANKFURT: NPK)(OMX: NAURo) - together with its subsidiaries "Northland", "NRSA" or the "Company") announces that the Administrator of the Company's...
Motley Fool  Jul 21  Comment 
The Swedish 3-D printing company posted weak second-quarter results, but the basic numbers don't tell the full story.
FiercePharma  Jul 21  Comment 
The FDA issued Paris-based AB Science a warning letter regarding its Kinavet-CA1 canine drug, intended for mast cell tumors in dogs, for allegedly boasting its off-label uses without approval.




 

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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