Bright Spots for AllianceBernstein Holding LP (AB) Despite Weak Flows

April 7, 2014

Although AllianceBernstein (AB) has had weak flows in recent periods, some of its businesses could be improving, according to Keefe, Bruyette & Woods Analyst Robert Lee. He says AllianceBernstein’s private client business has been a problem area for years, and he says January data shows that business is not generating new inflows. However, Lee says the drag from outflows is moderating, a sign of possible better days to come.

“If you look at their institutional business, particularly in fixed income, mainly in fixed income that business continues to actually do better, generate better flows,” Lee says. “If you look at even their equities business — which remains a general drag, performance has picked up in different places.”


In addition, Lee says AllianceBernstein has announced some new strategies that could gain momentum. For now Lee says the overall picture is still negative, but underlying flows are picking up.

“When you kind of look down beneath, you could see places where there was clearly improvement,” he says.