QUOTE AND NEWS
OilVoice  Oct 17  Comment 
Lundin Petroleum AB TSXLUPOMXLUPE through its wholly owned subsidiary Lundin Norway AS Lundin Norway has completed the drilling of wildcat well 331210 S. The well investigated the hydrocar
SeekingAlpha  Oct 15  Comment 
By Steve Evans: Analysis from Alliance Bernstein researchers shows that the property and casualty insurance sector needs to continue to take rate increases of between 5% and 10%, if it is to earn its cost of capital in the aggregate, which likely...
Yahoo  Oct 14  Comment 
The shortfall facing lenders from JPMorgan Chase & Co. (JPM) to HSBC Holdings Plc could be as much as $870 billion, according to estimates from AllianceBernstein Ltd., or as little as $237 billion forecast by Barclays Plc. The range is so wide...
Cranes Today  Oct 14  Comment 
Hiab, owned by Cargotec, has established a long-term distribution partnership in the Middle East with Sweden’s Gavelås Förvaltning AB.
The Economic Times  Oct 10  Comment 
'AB Nuvo Ltd is a 'BUY' call with a target of Rs 1715 and a stop loss of Rs 1640.'
Motley Fool  Oct 2  Comment 
Understanding the strengths and weaknesses of Arcam's metal 3D printing technology: electron beam melting.
GenEng News  Oct 2  Comment 
AB Sciex and Illumina are teaming up for what they call the OneOmics™ project, which aims to combine next-generation proteomics (NGP) and next-generation sequencing (NGS) tools in a cloud computing environment. As part of this project,...
StreetInsider.com  Oct 2  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Illumina+%28ILMN%29%2C+AB+SCIEX+Announce+OneOmics+Project/9879245.html for the full story.
WA Business News  Oct 2  Comment 
Perth-based Altona Mining announced the completion of its $US95 million Finnish assets sale to Swedish miner Boliden Mineral AB and has received $US89.2 million in cash as the first tranche of payment.




 

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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki