UPDATE 1-AllianceBernstein notches up revenue rise despite equity outflows

Wed Feb 12, 2014 8:23am EST

Feb 12 (Reuters) - U.S. money manager AllianceBernstein Holding LP on Wednesday posted profit and revenue above analysts' estimates for the fourth quarter, despite clients withdrawing more money after the lackluster performance of its equity funds.

Active and passively managed equity investments experienced net outflows of $3.6 billion during the fourth quarter, AllianceBernstein said. Those equity investments totaled $157 billion and accounted for one-third of its $450 billion in assets under management at the end of the fourth quarter.

Overall, the company suffered $10.3 billion in net outflows during the fourth-quarter. However, $6.8 billion of that came from AXA SA's sale of its MONY Life Insurance company.

French insurance giant AXA controls a majority of AllianceBernstein.

AllianceBernstein said the loss of the MONY-related fixed-income assets would not hurt its revenue in a material way because they generated low fees.

AllianceBernstein's fourth-quarter net revenue rose 9 percent to $766 million from year-ago levels on higher performance and research fees and investment gains.

Adjusted net income per unit was 60 cents, compared with 40 cents per unit in the year-ago period.

Analysts on average had been looking for adjusted net income of 43 cents a unit and quarterly revenue of $741.5 million, according to Thomson Reuters I/B/E/S.

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