Alliance Capital Management ended 2004 with $539 billion in assets under management, up 12.9% from the year before, according to a news release from the company. Alliance attributed the gain to market appreciation and net inflows. Most of those gains came during the fourth quarter, when $9 billion in net inflows erased a nine-month deficit, leaving Alliance with full-year inflows of $8.3 billion. Alliance reported $7.7 billion in institutional client inflows for the year, which helped offset $4 billion in retail outflows. The company's value equity strategies did best, with assets under management climbing 30% for the year to $193 billion as of Dec. 31. By contrast, assets under management in Alliance's growth equity strategies edged up a scant 1.7% to $123 billion.
Alliance Capital Management Holding LP, the firm's parent, reported that net income for 2004 surged 115% to $710.2 million, helped by higher average AUM and higher performance fees, which partially offset fee reductions in U.S. retail mutual funds.
