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AllianceBernstein AUM down 2% in quarter despite institutional net inflows

AllianceBernstein (AB) reported $480.2 billion in assets under management as of Dec. 31, down 2% from Sept. 30 but up 2.7% from Dec. 31, 2015, the company reported in its earnings statement Tuesday.

Total net outflows for the quarter ended Dec. 31 were $100 million, compared to net outflows of $15.3 billion from the quarter ended Sept. 30 and net outflows of $2.5 billion in the year-earlier quarter.

Institutional net inflows were $1.8 billion, compared to net outflows of $9.9 billion in the third quarter of 2016, which included $7.6 billion in outflows related to the termination of an alternative investment portfolio. Institutional net outflows were $900 million for the quarter ended Dec. 31, 2015, according to a previous earnings statement from the company.

“There's no question that active managers are under more pressure than ever these days to produce consistent strong investment performance and remain relevant to our clients,” said Peter S. Kraus, chairman and CEO, in the earnings statement. “These remain our primary objectives at AB and we demonstrated in many ways during 2016 how we're positioning our business in a client-focused way.”

Mr. Kraus added: “In our institutional business, we launched a third fundraise for our real estate commercial debt fund in 2016 that attracted $200 million in new commitments by year-end, and acquired Ramius Alternative Solutions, a provider of customized, factor-based and alternative risk premia solutions for institutional clients. Recently relaunched as AB Custom Alternative Solutions, this business has already secured its first new client.”

Net revenue for the second quarter totaled $786.3 million, up 5.2% from the previous quarter and up 8.2% from the year-earlier quarter. Net income totaled $222.2 million, up 19.9% from the prior quarter and up 30% from the same quarter a year ago.