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Alliancebernstein Holding (AB)

AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets. The firm has $688 billion in client assets under management, as of February 28, 2021.

Company profile

Ticker
AB
Exchange
CEO
Seth Perry Bernstein
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
ALLIANCE CAPITAL MANAGEMENT HOLDING LP, ALLIANCE CAPITAL MANAGEMENT LP, ALLIANCE HIGH YIELD FUND INC
SEC CIK
Subsidiaries
AllianceBernstein L.P. • 1.AllianceBernstein International LLC • 2.AB Trust Company, LLC • 3.AllianceBernstein Corporation • 4.AllianceBernstein Holdings (Cayman) Ltd. • 5.Alliance Capital Management LLC • 6.Sanford C. Bernstein & Co., LLC • 7.AllianceBernstein Real Estate Investments LLC • 8.AB Private Credit Investors LLC • 9.AB Custom Alternative Solutions LLC ...
IRS number
133434400
SEC advisor number
801-32361
FINRA CRD number
106998
Address
Alliancebernstein Holding
1345 AVE OF THE AMERICAS
NEW YORK
NY 10105
Office hours
Monday - Friday, 9AM -5PM
Phone
2129691000

Ownership

Owner Title From %Ownership
Pearson, Mark, NMN Director of Abc 01/2011 < 5%
Alliancebernstein Corporation General Partner of Registrant 04/1999 < 5%
Manley, Mark, Randall Senior Vice President, General Counsel, and Chief Compliance Officer 05/1984 < 5%
Cranch, Laurence, Edward Chief Legal Officer 07/2004 < 5%
Lesser, David, Michael Corporate Secretary 09/2016 < 5%
Axa Equitable Financial Services, LLC 100% Shareholder 09/1999 > 75%
Equitable Holdings, Inc. 100% Shareholder 05/2018 > 75%
Alpha Unit Holdings, Inc. 100% Shareholder 12/2018 > 75%
Bernstein, Seth, Perry CEO of Abc 05/2017 < 5%
Kaye, Daniel, George Director of Abc 05/2017 < 5%
Deoliveira, Ramon, Eugene Chairman and Director of Abc 04/2019 < 5%
Narayandas, Das, NMN Director of Abc 11/2017 < 5%
Hurd, Jeffrey, (NMN) Director of Abc 04/2019 < 5%
Stonehill, Charles, Gerald Thoroton Director of Abc 04/2019 < 5%
Lane, Nicholas, Burritt Director of Abc 04/2019 < 5%
Burke, Catherine, Cooney Chief Operating Officer 06/2019 < 5%
Matus, Kristi, Ann Director of Abc 06/2019 < 5%
Domenici, Nella, Louise Director of Abc 01/2020 < 5%
Dibadj, Ali Chief Financial Officer 03/2020 < 5%
Scott, Bertram, Lee Director of Abc 09/2020 < 5%
Walthall, Todd Director of Abc 09/2021 < 5%

AB stock data

Investment data

Data from SEC filings

Calendar

29 Apr 22
26 Jun 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
13 Jun 22 Stonehill Charles G.T. AB Holding Units Sell Dispose S No No 40.61 1,400 56.85K 19,914
19 May 22 Narayandas Das AB Holding Units Grant Acquire A No No 38.55 4,410 170.01K 30,659
19 May 22 Lammtennant Joan M AB Holding Units Grant Acquire A No No 38.55 4,410 170.01K 6,216
19 May 22 Matus Kristi Ann AB Holding Units Grant Acquire A No No 38.55 4,410 170.01K 20,254
19 May 22 Todd Walthall AB Holding Units Grant Acquire A No No 38.55 4,410 170.01K 6,618
1.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 72 80 -10.0%
Opened positions 4 23 -82.6%
Closed positions 12 10 +20.0%
Increased positions 20 20
Reduced positions 17 12 +41.7%
13F shares Current Prev Q Change
Total value 72.25M 97.33M -25.8%
Total shares 1.54M 2.05M -25.2%
Total puts 10.7K 15.7K -31.8%
Total calls 81K 50.4K +60.7%
Total put/call ratio 0.1 0.3 -57.6%
Largest owners Shares Value Change
JPM JPMorgan Chase & Co. 240.91K $11.33M -44.4%
Janney Montgomery Scott 173.7K $8.17M -3.1%
United Capital Financial Advisers 118.65K $5.58M -1.6%
Gabelli Funds 111.65K $5.25M 0.0%
Greenwich Investment Management 83.02K $3.9M +44.8%
GBL Gamco Investors 76.36K $3.59M -1.0%
BNP Paribas Arbitrage 69.1K $3.25M +734.7%
Williams Jones Wealth Management 68.1K $3.2M -1.4%
GS Goldman Sachs 55.69K $2.62M -3.6%
Knott David M Jr 50.5K $2.38M 0.0%
Largest transactions Shares Bought/sold Change
Foundry Partners 0 -231.13K EXIT
JPM JPMorgan Chase & Co. 240.91K -192.55K -44.4%
Castleview Partners 2.1K -100.46K -98.0%
BNP Paribas Arbitrage 69.1K +60.82K +734.7%
Greenwich Investment Management 83.02K +25.68K +44.8%
Miller Howard Investments 0 -23.06K EXIT
Jump Financial 8.5K -18.63K -68.7%
Thompson Siegel & Walmsley 20K -15K -42.9%
Sowell Financial Services 14.12K +14.12K NEW
GoalVest Advisory 12.44K +12.44K NEW

Financial report summary

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Competition
Morningstar
Risks
  • Our revenues and results of operations depend on the market value and composition of our AUM, which can fluctuate significantly based on various factors, including many factors outside of our control.
  • The industry-wide shift from actively-managed investment services to passive services has adversely affected our investment advisory and services fees, revenues and results of operations, and this trend may continue.
  • Our reputation could suffer if we are unable to deliver consistent, competitive investment performance.
  • EQH and its subsidiaries provide a significant amount of our AUM and fund a significant portion of our seed investments, and if our agreements with them terminate or they withdraw capital support it could have a material adverse effect on our business, results of operations and/or financial condition.
  • Our business is dependent on investment advisory agreements with clients, and selling and distribution agreements with various financial intermediaries and consultants, which generally are subject to termination or non-renewal on short notice.
  • Performance-based fee arrangements with our clients may cause greater fluctuations in our net revenues.
  • The revenues generated by Bernstein Research Services may be adversely affected by circumstances beyond our control, including declines in brokerage transaction rates, declines in global market volumes, failure to settle our trades by significant counterparties and the effects of MiFID II and Brexit.
  • Fluctuations in the exchange rates between the U.S. dollar and various other currencies can adversely affect our AUM, revenues and results of operations.
  • Our seed capital investments are subject to market risk. While we enter into various futures, forwards, swap and option contracts to economically hedge many of these investments, we also may be exposed to market risk and credit-related losses in the event of non-performance by counterparties to these derivative instruments.
  • We may engage in strategic transactions that could pose risks.
  • We may not accurately value the securities we hold on behalf of our clients or our company investments.
  • We may not have sufficient information to confirm or review the accuracy of valuations provided to us by underlying external managers for the funds in which certain of our alternative investment products invest.
  • The quantitative and systematic models we use in certain of our investment services may contain errors, resulting in imprecise risk assessments and unintended output.
  • The financial services industry is intensely competitive.
  • We may be unable to continue to attract, motivate and retain key personnel, and the cost to retain key personnel could put pressure on our adjusted operating margin.
  • Technology failures and disruptions, including failures to properly safeguard confidential information, can significantly constrain our operations and result in significant time and expense to remediate, which could result in a material adverse effect on our results of operations and business prospects.
  • Any significant security breach of our information and cyber security infrastructure, as well as our failure to properly escalate and respond to such an incident, may significantly harm our operations and reputation.
  • Unpredictable events, including climate change, outbreak of infectious disease, natural disaster, dangerous weather conditions, technology failure, terrorist attack and political unrest, may adversely affect our ability to conduct business.
  • Our own operational failures or those of third parties on which we rely, including failures arising out of human error, could disrupt our business, damage our reputation and reduce our revenues.
  • The individuals, third-party vendors or issuers on whom we rely to perform services for us or our clients may be unable or unwilling to honor their contractual obligations to us.
  • Maintaining adequate liquidity for our general business needs depends on certain factors, including operating cash flows and our access to credit on reasonable terms.
  • An impairment of goodwill may occur.
  • The insurance that we maintain may not fully cover all potential exposures.
  • Our business is subject to pervasive, complex and continuously evolving global regulation, compliance with which involves substantial expenditures of time and money, and violation of which may result in material adverse consequences.
  • We are involved in various legal proceedings and regulatory matters and may be involved in such proceedings in the future, any one or combination of which could have a material adverse effect on our reputation, financial condition, results of operations and business prospects.
  • The partnership structure of AB Holding and AB limits Unitholders’ abilities to influence the management and operation of AB’s business and is highly likely to prevent a change in control of AB Holding and AB.
  • AB Units are illiquid and subject to significant transfer restrictions.
  • Changes in the partnership structure of AB Holding and AB and/or changes in the tax law governing partnerships would have significant tax ramifications.
  • If, pursuant to the Bipartisan Budget Act of 2015 ("2015 Act"), any audit by the Internal Revenue Service ("IRS") of our income tax returns for any of our taxable years beginning after December 31, 2017 results in any adjustments, the IRS may collect any resulting taxes, including any applicable penalties and interest, directly from us, in which case our net income and the cash available for quarterly Unitholder distributions may be substantially reduced.
  • Non-U.S. unitholders may be subject to a 10% withholding tax on the sale of their AB Units or AB Holding Units, which could reduce the value of such Units.
  • We may be liable for any under-withholding by nominees on our Unitholder distributions after January 1, 2023.
Management Discussion
  • (1)Distributions reflect the impact of AB’s non-GAAP adjustments.
  • AB Holding's net income for the three months ended March 31, 2022 increased $4.8 million as compared to the corresponding period in 2021 primarily due to higher net income attributable to AB Unitholders, partially offset by slightly lower weighted average equity ownership interest.
  • AB Holding’s partnership gross income is derived from its interest in AB. AB Holding’s income taxes, which reflect a 3.5% federal tax on its partnership gross income from the active conduct of a trade or business, are computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees, research payments and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB Holding’s effective tax rate was 8.9% during the three months ended March 31, 2022, compared to 8.8% during the three months ended March 31, 2021. See Note 7 to the condensed financial statements in Item 1 for the calculation of income tax expense.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: accretion, achievement, acquisition, announcement, beginning, CarVal, disrupt, duration, economy, efficacy, entered, escalating, event, excluded, existing, extent, failure, fully, governmental, hospitalization, iii, infection, issuance, iv, January, key, longer, lower, obtain, occurrence, offset, partially, pendency, prevalence, response, retention, revenue, satisfied, spread, stockholder, termination, transaction, unanticipated, Upfront
Removed: AUM, correct, create, depth, downturn, EPU, execution, expired, gradual, grandfathered, high, implementation, implemented, invest, length, numerical, occupancy, overlapping, phase, relocation, specificity, Strategy, unemployment