AllianceBernstein Gives Mixed Outlook

In a recent report from Citigroup, AllianceBernstein AB announced AUM declined 3.1%. The variance reflects deppeer institution attrition including “one off” account loss. Though according to Citi, ex the “one off” low fee passive account loss, underlying attrition is generally in-line with out expectations, and though disappointing, suggestive run-rate flow trends continue to heal. Attrition is primarily centered in equities and likely impacted by adverse market conditions. By asset class, Citi expects about $3 billion of equities attrition. Citi maintains its Buy and a price target of $30. Risks include an inability to meet relevant investment benchmarks could result in clients withdrawing assets and prospective clients choosing to invest with competitors. AB closed Monday at $26.09