There was little in no-moat-rated AllianceBernstein's first-quarter results that would alter our long-term view of the firm. We are leaving our $35 per share fair value estimate in place and view the company's shares as being slightly undervalued right now.
With 41% of its AUM invested in global/international funds, and 27% of its managed assets sourced from non-U.S. domiciled clients, we consider AB to be a more global asset manager than its U.S.-based peers.
Bears
Despite generating much of its fixed-income AUM growth from the Asia-Pacific region, flows for bond funds will be affected during periods of rising and falling U.S. interest rates.
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if AB is a good fit for your portfolio.
AllianceBernstein provides investment management services to institutional (43% of assets under management), retail (40%), and private (17%) clients through products that includes mutual funds, hedge funds, and separately managed accounts. At the end of January 2024, AB had $726 billion in managed assets, composed primarily of fixed-income (39% of AUM) and equity (43%) strategies, with other investments (made up of asset allocation services and certain other alternative investments) accounting for the remainder. The company also provides sell-side research and brokerage services through its Sanford Bernstein subsidiary (which has been put in available-for-sale status following the joint venture agreement with Societe Generale).