AllianceBernstein Holding LP announced Monday that its second-quarter earnings declined 16% as investment losses during the quarter hampered the New York-based asset manager’s results.
The company, which is majority-owned by French insurer Axa SA., saw income fall to $32.3 million, or 31 cents per unit, from $38.3 million, or 41 cents per unit, a year earlier. The results missed analyst estimates by 13 cents, according to Thomson Reuters.
"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.
Revenue declined 4.6% to $688 million. Analysts expected AllianceBernstein would report revenue of $716 million.
The decline was a result of $57 million of investment losses, which AllianceBernstein attributed to losses on deferred-compensation-related investments.
Despite the disappointing results, assets under management rose 2.5% to $458 billion from a year earlier, but fell 8.6% since the end of March. The company reported $4.7 billion of net outflows during the second quarter.