Business Description and Organization | 12 Months Ended |
Dec. 31, 2014 |
Business Description and Organization [Abstract] | |
Business Description and Organization | 1. Business Description and Organization |
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AB Holding’s principal source of income and cash flow is attributable to its investment in AB limited partnership interests. |
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AB provides research, diversified investment management and related services globally to a broad range of clients. Its principal services include: |
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| • | Institutional Services—servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as AXA and its subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles. | | |
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| • | Retail Services—servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. | | |
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| • | Private Wealth Management Services—servicing its private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities (including most institutions for which AB manages accounts with less than $25 million in assets), by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles. | | |
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| • | Bernstein Research Services—servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options. | | |
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AB also provides distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds it sponsors. |
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AB’s high-quality, in-depth research is the foundation of its business. AB’s research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, AB has experts focused on multi-asset strategies, wealth management and alternative investments. |
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AB provides a broad range of investment services with expertise in: |
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| • | Actively managed equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and core equities; | | |
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| • | Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; | | |
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| • | Passive management, including index and enhanced index strategies; | | |
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| • | Alternative investments, including hedge funds, fund of funds and private equity (e.g., direct real estate investing); and | | |
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| • | Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. | | |
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AB’s services span various investment disciplines, including market capitalization (e.g., large-, mid- and small-cap equities), term (e.g., long-, intermediate- and short-duration debt securities), and geographic location (e.g., U.S., international, global, emerging markets, regional and local), in major markets around the world. |
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As of December 31, 2014, AXA, a société anonyme organized under the laws of France and the holding company for an international group of insurance and related financial services companies, through certain of its subsidiaries (“AXA and its subsidiaries”) owns approximately 1.4% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”). |
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As of December 31, 2014, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, is as follows: |
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AXA and its subsidiaries | | | 62.1 | % |
AB Holding | | | 36.5 | |
Unaffiliated holders | | | 1.4 | |
| | | 100 | % |
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AllianceBernstein Corporation (an indirect wholly-owned subsidiary of AXA, “General Partner”) is the general partner of both AB Holding and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB. Including both the general partnership and limited partnership interests in AB Holding and AB, AXA and its subsidiaries have an approximate 62.7% economic interest in AB as of December 31, 2014. |