AllianceBernstein Has First Client Deposits in Five Years
Stock Chart for AllianceBernstein Holding LP (AB)
AllianceBernstein Holdings LP reported a fourth-quarter profit after a loss a year earlier as the money manager attracted net new client assets for the first time in five years.
Net income in the three months ended Dec. 31 rose to $26.2 million, or 26 cents a share, compared with a loss of $199.5 million, or $1.97 a share, a year earlier, the New York-based company said today in a statement. The firm gathered $5 billion in new money, the first time deposits outweighed redemptions sine the fourth quarter of 2007.
“We finished 2012 strong, with greater stability in many parts of our business and real momentum in others,” Chief Executive Officer Peter Kraus said in the statement.
Contributions from institutional and retail customers more than offset redemptions from its private client business, the company said. The turnaround is a victory for Kraus, whose contract was extended in June. Since the end of 2008, AllianceBernstein lost more than $200 billion to withdrawals, mainly from institutional accounts.
AllianceBernstein fell 2.4 percent to $20.92 in New York. Before today, the shares had gained 23 percent this year after climbing 33 percent last year.
AllianceBernstein has increased assets in its fixed-income business. The $25 billion AllianceBernstein Global High Yield Portfolio won $3.3 billion in deposits in 2012, according to Chicago-based Morningstar Inc. The fund, which is based in Luxembourg, beat 86 percent of rivals over the past five years, data compiled by Bloomberg show.
AllianceBernstein had $437 billion in assets under management as of Jan. 31, of which $256 billion were in fixed- income and $99 billion in equity. At the end of 2007 total assets were $800 billion.
AllianceBernstein was raised to outperform from market perform at Keefe, Bruyette & Woods in October, the third upgrade for the stock since August.
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