AllianceBernstein LP (NYSE: AB) is a U.S.-based investment management firm majority-owned by France's AXA.
AllianceBernstein is based in New York, New York. It has approximately US$496 billion in assets under management as of November 30th, 2009[2].
Overview
AllianceBernstein provides diversified, global investment management services that include growth, thematic, and value equities, blend strategies and fixed income services to institutional, high net worth individuals, and retail clients worldwide.
The company's retail services comprise of mutual funds, sub-advisory relationships with mutual funds and variable annuities sponsored by third parties, and separately managed account programs sponsored by various financial intermediaries. It provides separately managed accounts, hedge funds, mutual funds, and other investment vehicles for private clients, including high net worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities.
It also offers in-depth and independent fundamental research, portfolio strategy, trading, and brokerage-related services to institutional investors through sell-side subsidiary Sanford C. Bernstein & Co.
In addition, AllianceBernstein provides distribution, shareholder servicing, and administrative services to its sponsored mutual funds.
History
AllianceBernstein traces its roots back over 40 years to Alliance Capital Management and Sanford C. Bernstein & Co., Inc. In October of 2000, under the tenure of Bruce W. Calvert then Alliance Capital's CEO and Lewis A. Sanders then Sanford C. Bernstein's CEO, Alliance Capital agreed to purchase Sanford C. Bernstein and the two companies merged.[3] Until the 2006 name change to AllianceBernstein, Bernstein remained a relatively independent subsidiary of Alliance Capital. The merger sought to combine Alliance Capital's strength in growth-style investing with Sanford C. Bernstein's strength in the value-style with the intent of creating a broader, more diversified array of investment products. As Bruce W. Calvert, then CEO of Alliance Capital, commented: "Alliance Capital's combination with Bernstein achieves a logical strategic fit for both organizations. Alliance Capital's strength as a recognized leader in the growth style of investing and Bernstein's strength in the value style, allows us to effectively compete for virtually any investment assignment worldwide. Furthermore, we now serve a broader range of individual investors, including high net-worth clients, with an expanded array of investment products."[3]
Previous companies that have been bought out and merged into AllianceBernstein include;
- Whittingdale Holdings Ltd [4]
Company news
September 2008 – AllianceBernstein began seeing large outflows from their equity strategies. Poor relative performance due to high financial exposure further exacerbates the outflows. As the financial crisis unfolds, the Wall Street Journal reports that AllianceBernstein advised funds and strategies are among the largest shareholders in failed investment bank Lehman Brothers, insurance giant AIG and the quasi-government enterprises Fannie Mae and Freddie Mac.
December 2008 – Lewis A. Sanders, then CEO of AllianceBernstein, announces his retirement and the Board of Directors' decision to name Peter Kraus as his successor. Kraus joined AllianceBernstein after spending most of his career at Goldman Sachs and a brief stint at Merrill Lynch.
April 2009 – The US Treasury names AllianceBernstein as one of the three asset managers to help value and manage the TARP assets, including senior preferred equity, senior debt, equity warrants, and other equity and debt securities. The contract is for 5 years and is effective through April 20th, 2014. During the first quarter conference call, CEO Peter Kraus indicates that AllianceBernstein will not count the assets, which may total up to $200 billion, in their AUM.
May 2009 – Rosanne Peress, who was dismissed as senior vice-president for human resources in February 2009, sues AllianceBernstein for age discrimination and retaliation against her investigating age discrimination, racial discrimination and gender discrimination including bias against working mothers. [5]
December 2009 – AllianceBernstein to move into real estate investment. AllianceBernstein established a new real estate investment unit with offerings targeting institutional and high-net-worth investors by mid-2010 to ‘’capitalize on real estate opportunities around the world.‘’ [6]
Company owners
French insurer AXA owns 64.3% of the company as of 31st May 2009.
See also
References
- ^ Company History
- ^ [1]
- ^ a b Alliance Capital Management announces close of the acquisition of Sanford C. Bernstein Inc.
- ^ Alliance Capital Management LP acquires Whittingdale Holdings Ltd
- ^ http://www.efinancialnews.com/share/media/downloads/2009/06/1054491132.pdf
- ^ http://www.pionline.com/apps/pbcs.dll/article?AID=/20090914/REG/909149979
