AllianceBernstein Holding L.P. AB
Q2 2011 Earnings Call Transcript

Transcript Call Date 07/29/2011

Operator: Good morning, everyone, and welcome to our Second Quarter 2011 Earnings Review.

Andrea L. Prochniak - SVP and Director, IR: Good morning, everyone, and welcome to our Second Quarter 2011 Earnings Review. As a reminder, this conference call is being webcast and accompanied by a slide presentation that can be found in the Investor Relation section of our website.

On the call today, we have our Chairman and CEO, Peter Kraus; our Chief Operating Officer, David Steyn; and our Controller and Interim CFO, Edward Farrell.

Now, I'd like to draw your attention to the cautions regarding forward-looking statements on Slide 2 of our presentation. Some of the information we present today is forward-looking and subject to certain SEC rules and regulations regarding disclosures. You can also find our cautions regarding forward-looking statements in the MD&A of our 2010 Form 10-K, and 2011 Form 10-Q filings. We filed our second quarter 2011 10-Q this morning.

I’d also like to remind you that Under Regulation FD, management may only address enquiries of a material nature from the investment community in the public forum. So, please ask all such questions during this call.

Now, let me turn the call over to Peter.

Peter S. Kraus - Chairman and CEO: Thank you, Andrea. Good morning, good afternoon, and good evening. Welcome to our second quarter earnings call. Without a doubt, this quarter was a challenging one for us. Uncertainty around European debt, questions about the U.S. economy, and a flight from risk by U.S. equity investors impacted the market, but also had significant impact on both our investment performance and flows.

Yet, even with these challenges, we still made progress in executing our long-term strategy for positioning AB for success. I’m going to walk through our second quarter challenges and accomplishments, and David will elaborate further in his remarks, and Ed is going to review the financials. And as always, we’ll take questions at the end. So, let me start.

Throughout our businesses we spent the past two years focused on a long-term strategy to improve the investment performance and restore client confidence; diversify our businesses across channels, services, and geographies; develop innovative new products and services for our clients, and achieve greater operating leverage and better financial results.

We're doing this by utilizing our firm-wide research talent, our core competency of the firm, and broadening our client offerings worldwide. Our strategy is working and we've made new progress which we'll share with you today. Beginning with performance, second quarter brought continued success in fixed income. We also delivered strong performance in equity services like Small-Cap and Mid-Cap Growth and Value. In fact, these teams were just named Manager of the Year by Institutional Investor, a terrific achievement for the teams and for the firm. We'll talk more in a minute about how many of our new strategies have outperformed as well.

On the global front, we grew our European distribution platform and expanded our sell-side research footprint in Asia with new analysts that we've hired. We also had new wins in product innovation. We funded two new CRS mandates worth $1.2 billion, received a major new contribution from a long-standing client, and just announced a major CRS win in the U.K., all of which added to our already growing business.

Read our Earnings Call Transcript disclaimer.
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