* Q2 profit 31 cts/unit vs Wall St view 44 cts
* Investment losses pull down revenue (Adds detail on assets, CEO comment)
BOSTON, August 2 (Reuters) - Asset manager AllianceBernstein Holding LP (AB.N) said on Monday that second-quarter profit fell 16 percent as investment losses pulled down revenue.
Net income declined to $32.3 million, or 31 cents per unit, from $38.3 million, or 41 cents per unit, a year earlier.
Analysts on average had expected the New York-based company, an affiliate of French insurer Axa Group,(AXAF.PA), to report earnings of 44 cents a unit, according to Thomson Reuters I/B/E/S.
Revenue came in at $688 million, down from $721 million a year earlier. Analysts were expecting $716 million.
The decline was mostly due to investment losses of $57 million that the company attributed mainly to losses on deferred-compensation-related investments.
Assets under management, the main driver of revenue and profit for money managers, were $458 billion at June 30, up from $447 billion at the same point a year ago but down from $501 billion at March 31. The sequential decline was mainly due to investment losses, but the company also reported net outflows of $4.7 billion for the quarter.
"Overall, the second quarter of 2010 was not what we would have liked," said Chief Executive Peter Kraus in a press release. The European credit crisis increased volatility and caused investors to sell riskier assets, hurting the performance of the company's equity services, he said.
However, equity portfolios hold companies with good cash flows that are positioned to capitalize on global growth, he said. (Reporting by Ross Kerber; Editing by Lisa Von Ahn, Dave Zimmerman)