AllianceBernstein Holding L.P.NYSE
Market Headwinds Slow The Progress At AllianceBernstein
Stephen Simpson, CFA
Stephen Simpson, CFA
Forget Turning Around, AllianceBernstein Is Growing
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Nov. 22, 10:30 AM
- Citi's William Katz is selling the rip in AllianceBernstein (AB +0.4%), saying the rally "tempers residual upside" while the company's MLP structure limits potential tax-related earnings accretion. He downgrades to Neutral, and the $24 price target remains (current price is $23.60).
- Alongside, Katz upgrades Schwab (SCHW) to a Buy, noting the company's leverage to higher interest rates. The $44 price target suggests about 15% upside.
- Source: TheFly
Fri, Nov. 18, 12:52 PM
- Insurers are late converts to the ETF craze, and JPMorgan's Mark Snyder, noting the insurance industry's $200B in cash and $80B in equities, figures a modest reallocation could send $25B-$50B into exchange-traded products.
- The head of BlackRock's (NYSE:BLK) iShares fixed-income and insurance sales, Josh Penzner says insurers are slow to change, but are "really looking" at their investment processes and how to evolve.
- The move could be yet another blow to the asset management industry which already is losing sizable market share to ETFs.
- Also of interest to: Och-Ziff (NYSE:OZM), Invesco (IVZ -0.5%), AllianceBernstein (NYSE:AB)
Fri, Nov. 18, 10:18 AM
- The flood of money pouring into stocks since the election isn't helping mutual funds, which somehow saw $3B of outflows in the last week. Equity ETFs, meanwhile, had $27B of inflows, according to Goldman Sachs - the largest weekly amount on record.
- Equity mutual funds had outflows of $4.4B, making YTD outflows of roughly $120B.
- via Bryan Mortenson
- Interested parties: BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resource (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR)
- Previously: Financial ETF sees fastest-ever inflows (Nov. 16)
Thu, Nov. 10, 3:28 PM
- "We've got to get rid of this," says hedge fund honcho and Trump advisor Anthony Scaramucci, speaking about the DOL's fiduciary rule.
- Set to take effect in April, the Department of Labor's new rule would hold retirement professionals to a "fiduciary" standard in which they must put client interests ahead of their own, rather than the current requirement that they recommend "suitable" products.
- The Obama administration argues the move would save investors $17B a year in fees and lost returns. Asset managers, however, will probably spend a lot more setting up systems to try and figure out how to comply with the new standard. In Scaramucci's vision, a Trump administration would instead impose a "self-auditing process" for registered financial advisors.
- Former assistant secretary of labor under Bush, Bradford Campbell has no doubt Trump isn't a fan of the rule, but isn't sure it can be fixed on day one with the stroke of a pen. A Trump administration, however, would have plenty of available tools to modify or eventually remove it, he says.
- Source: FT
- The asset managers continue on their post-election tear: BlackRock (BLK +2.7%), Och-ZIff (OZM +3.8%), Legg Mason (LM +4.4%), Gamco (GBL +1.9%), Janus (JNS +3.6%), Invesco (IVZ +3.3%), T. Rowe Price (TROW +3.6%), AllianceBernstein (AB +5.1%), Affiliated Managers (AMG +7.5%), Federated Investors (FII +6.6%), Waddell & Reed (WDR +4.4%).
Thu, Nov. 3, 9:17 AM
Wed, Nov. 2, 2:32 PM
- With $250.6B of inflows through this year's first 10 months, Vanguard has already broken through the record level of inflows set during the entirety of 2015 (last year's total inflow was $236.1B). More than $200B of that amount has gone into low-fee index funds.
- Vanguard's gains are generally at the expense of active fund managers like Fidelity, Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), and AllianceBernstein (NYSE:AB), to name a few.
- Assets at rival BlackRock (NYSE:BLK) - a major player in both active and passive investing - recently topped $5T for the first time ever.
- Passive investing top? Strictly a suburban outfit, Vanguard is nearing a deal for about 20K square feet of office space near Penn's campus in Philadelphia for a research and development hub.
Wed, Oct. 26, 9:58 AM
- Adjusted operating income of $148.7M and EPS of $0.45 compares to $147M and $0.43 one year ago.
- Ending AUM of $490.2B up 5.9% Y/Y. Average AUM of $492B up 3.3%.
- CEO Peter Kraus notes $3B in retail net inflows during quarter vs. $2B of outflows in Q3 a year ago. Private Wealth inflows of $1.2B vs. slight outflows a year ago (overall net outflows of $9.9B during quarter thanks to the end of two sizable deals). Equity investment performance rebounded in Q3 after a tough H1, he says.
- 2M shares bought back during quarter.
- Previously: AllianceBernstein beats by $0.02, beats on revenue (Oct. 26)
- AB +4.8%
Wed, Oct. 26, 6:48 AM
Tue, Oct. 25, 5:30 PM
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Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Thu, Oct. 13, 2:56 PM
- It's a mixed bag, but the continuing broad theme for flows is the domination of passive strategies and fixed-income.
- More than half of the managers in Katz's coverage universe saw outflows last month - WisdomTree (NASDAQ:WETF), Waddell & Reed (NYSE:WDR), and Franklin Resources (NYSE:BEN) getting hit the worst.
- Among active managers, only Affiliated Managers Group (NYSE:AMG) and AllianceBernstein (NYSE:AB) saw inflows.
Wed, Oct. 12, 9:07 AM
Thu, Oct. 6, 8:51 AM
- In one of the highest quarterly amounts ever, investors moved $92B into ETFs in Q3, according to UBS, bringing AUM for U.S.-listed ETFs to about $2.4T.
- For the year, $150B has flowed into ETFs, putting the vehicles on track for their third straight year of inflows north of $200B. The inflows stand in major contrast to either outright net exits or minimal inflows for mutual funds.
- Still, even after doubling AUM since 2011, ETFs account for just 17% of mutual fund assets.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, EV
Fri, Sep. 16, 8:31 AM
- Just 9.5% of actively-managed large-cap domestic equity funds beat the S&P 500 in the five year ended August 31 - the worst 5-year record since 1999, according to Morningstar. By comparison, in the five years ended 2010, nearly 50% topped the S&P.
- The lame results haven't gone unnoticed, with investors yanking $422B from roughly 3K mutual funds in the past five years, and putting that money and more into passive vehicles (ETFs).
- In the year ended June 30, 85% of large-cap stock funds, 88% of mid-cap funds, and 89% of small-cap funds failed to match their bogeys. "Pretty appalling," says S&P's Aye Soe. "Given the choppiness in the markets we would have expected the active managers to come out looking better.”
- Interested parties include BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Calamos (NASDAQ:CLMS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR), Artisan Partners (NYSE:APAM)
Mon, Sep. 12, 4:22 PM
Thu, Sep. 1, 10:50 AM
- RASL has more than $3B in AUM, and is jointly owned by Cowen Group and its two principals, Stuart Davies and Vikas Kapoor - both of whom will join AB.
- "The RASL acquisition represents a natural extension of our factor completion strategies for multi-manager equity portfolios," says the company's Vadim Zlotnikov.
- Closing is expected before the end of the month. Terms were not disclsoed.