U.S. money manager AllianceBernstein Holding LP said on Wednesday that second-quarter net revenue and profit surged, beating Wall Street estimates, but retail investors in Asia pulled money from their accounts in June amid anxiety over the direction of U.S. interest rates.
AllianceBernstein's net revenue was $734 million, compared with $642 million a year earlier. Analysts on average had expected $723 million, according to Thomson Reuters I/B/E/S.
Net income attributed to AllianceBernstein unitholders rose 63 percent to $120.7 million. Diluted net income per unit was 40 cents, beating analysts' estimates of 38 cents per unit. The company is controlled by French insurance giant Axa SA.
Net client deposits were $200 million, or $2.4 billion less than in the first quarter. Retail investors, particularly in Asia, withdrew $3.2 billion from their accounts. It was the first time the retail channel experienced net outflows in six quarters, the company said.
"The second quarter finished very differently than it began," Chief Executive Officer Peter Kraus said in a statement. "The robust equity markets and strong demand for fixed income we experienced early in the quarter gave way to equity market volatility and high investor anxiety over the outlook for interest rates."
Shares of AllianceBernstein were down nearly 1 percent, or 15 cents, to $22.10 in early Wednesday trading. The stock is up 81 percent over the past 12 months, easily beating the 23 percent rise on the S&P 500 index.
(Reporting By Tim McLaughlin; Editing by Gerald E. McCormick, Lisa Von Ahn and Chris Reese)