QUOTE AND NEWS
Forbes  May 22  Comment 
Many articles and commentators recently have expressed concern about the potential for artificial intelligence (AI) to disrupt human life. Some have even gone apocalyptic in their visions of AI run amok. Certainly there is cause for concern and...
Financial Times  May 20  Comment 
Regulatory clearance conditional on selling some brands within six months
Clusterstock  May 20  Comment 
BRUSSELS/LONDON (Reuters) - European Union antitrust regulators are to conditionally approve world No. 1 brewer Anheuser-Busch InBev's $100 billion-plus takeover of SABMiller , three people familiar with the matter said on Friday. AB InBev,...
The Hindu Business Line  May 19  Comment 
Friday will see a host of actively-tracked firms, such as AB Nuvo, Allcargo, Balrampur Chini, Bank of India, Britannia, Coffee Day, Cox & Kings, DB Corp, Deccan Cement, e-Clerx, Gokul Agro, Hond...
Reuters  May 19  Comment 
* Acquisition will be accretive to EPS from start Source text for Eikon: Further company coverage: (Bengaluru Newsroom +91 80 6749-1130; within U.S. +1 646 223 8780)
Mondo Visione  May 18  Comment 
The Disciplinary Committee of Nasdaq Stockholm (“the Exchange”) has ruled that Capio AB (“Capio”) has breached Nasdaq Stockholm’s Rule Book for Issuers (“the Rule Book”) and has therefore ordered Capio to pay a fine of SEK 344.869,...
The Times of India  May 18  Comment 
London, May 18, 2016 (AFP) -British brewer SABMiller on Wednesday announced a drop in annual net profits, hit in part by costs linked to its upcoming takeover by sector leader Anheuser-Busch InBev. Profits after tax dropped 18 percent to $2.7...
OilVoice  May 17  Comment 
During April 2016 the Joint Activity JA led by Misen Energy AB publ produced a total of 54.2 million cubic meters mmcm of natural gas 3.0 thousand tons ktons of gas condensate 0.4 ktons of
Reuters  May 13  Comment 
* CLX communications AB: CLX acquires Mblox, strengthening its position as one of the global leaders in enterprise cloud communications Source text for Eikon: Further company coverage: ...
The Times of India  May 13  Comment 
STOCKHOLM, (BSW) -Regulatory News; CLX Communications AB (publ) ("CLX”) today announces that it has entered into a definitive merger agreement under which CLX will acquire Mblox Inc. ("Mblox”) for a cash consideration of USD 117 million.




 

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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