AllianceBernstein (AB) released third-quarter financial results on Thursday, reporting earnings per share of $0.36 versus analysts’ consensus of $0.41, down 25% from EPS of $0.48 in third-quarter 2009 and down 3% from $0.37 in second-quarter 2010.
Total assets under management as of Sept. 30, 2010 were $484 billion, up $26 billion, or 6%, from June 30, but down $14 billion, or 3%, compared to Sept. 30, 2009. Net revenues were reported at $758 million, 6% lower than the $806 million of revenues reported in the third quarter a year ago.
The AUM increase versus the prior quarter was a result of positive investment performance, partially offset by net outflows mainly in AllianceBernstein’s Institutions channel, according to AllianceBernstein’s Q3 2010 release.
A Q3 breakdown of total AUM showed Institutions losing $15.2 billion in net flows in the quarter, Retail losing $3.2 billion, and Private Client losing $500 million.
The global investment management firm, an affiliate of French insurer Axa with its U.S. headquarters in New York, delivered a mixed performance for the quarter due to only a modest recovery in the stock market after losses experienced earlier in the year.
"As investors continue to rebalance their portfolios away from risk assets and into bond funds, we are benefitting in our U.S. and global bond services, where our performance has been strong over the last several years," said Chairman and CEO Peter Kraus in a statement. "Despite our equity services’ improved performance relative to the second quarter, net flows in the third quarter proved to be more challenging.”