QUOTE AND NEWS
newratings.com  1 hr ago  Comment 
FORM 8.3 AMENDED PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover...
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Benzinga  Jan 28  Comment 
Altria , one of the world's largest tobacco producers, kicked off the vice earnings season with a quarterly report Thursday. Revenues after excise taxes increased 2.5 percent to $4.7 billion for the quarter and increased 5.1 percent to $18.9...
newratings.com  Jan 28  Comment 
STOCKHOLM (dpa-AFX) - Swedish home appliances giant Electrolux AB (0MDT.L, 0GQ1.L, ELUXY.PK) Thursday reported a loss in its fourth quarter, compared to profit last year, reflecting costs related to the failed GE Appliances deal. Sales, however,...
Reuters  Jan 28  Comment 
Anheuser-Busch InBev said on Thursday that it had canceled $42.5 billion of a record $75 billion senior acquisition loan after raising a hugely successful bond which was used to repay...
newratings.com  Jan 28  Comment 
STOCKHOLM (dpa-AFX) - Hennes & Mauritz AB (HNNMY.PK, HMRZF.PK, HEN.L) reported fourth-quarter profit after tax of 5.53 billion Swedish kronor, down from 6.22 billion kronor in the same period last year. Earnings per share were 3.34 krona...
Wall Street Journal  Jan 27  Comment 
Anheuser-Busch InBev will try to defy conventional wisdom and hold on to SABMiller’s China beer business CR Snow, according to two people familiar with the company’s plan.
Forbes  Jan 26  Comment 
iROKO has just announced that it has secured a $19m content and capital deal with French media giant Canal+ and their existing Sweden-based investors, Kinnevik AB.
newratings.com  Jan 25  Comment 
LONDON (dpa-AFX) - e2v technologies plc (E2V.L) announced the acquisition of Linköping-based Signal Processing Devices Sweden AB, for up to $18 million. SP Devices provides high performance sub-system solutions for analogue to digital conversion...
Motley Fool  Jan 22  Comment 
AB InBev has grown to become an incredibly successful company, and that probably won't change with its pending $100 billion acquisition of SABMiller.
Benzinga  Jan 22  Comment 
In November, beer giant Anheuser Busch Inbev SA ( ADR ) (NYSE: BUD) said it completed an agreement with SABMiller plc ( ADR ) ( OTCMKTS : SBMRY ) to acquire the rival for more than $100 billion, pending regulatory approval. In a...




 

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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