QUOTE AND NEWS
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.
SeekingAlpha  Jul 21  Comment 
By AllianceBernstein: By Seth J. Masters It's a truism that what goes up, must come down-but when, and by how much? That matters, especially if you're talking about the US stock market. With the S&P 500 approaching the 2000 mark and nearly...
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...




 

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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