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Extraction Summary
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People
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Organizations
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Locations
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Events
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Relationships
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Quotes
Document Information
Type:
Financial conference report
File Size:
Summary
This document is a page from a Bank of America Merrill Lynch report summarizing presentations from the '2016 Future of Financials Conference' held on November 17, 2016. It includes a financial analysis and 'Buy' recommendation for AllianceBernstein (AB), notes from a presentation by AB's CEO Peter Kraus, and the results of an investor poll. While the document's content is purely financial and does not mention Jeffrey Epstein, the Bates number 'HOUSE_OVERSIGHT_014354' indicates it was produced as evidence for a U.S. House of Representatives investigation, which is the likely source of its 'Epstein-related' designation.
People (1)
| Name | Role | Context |
|---|---|---|
| Peter Kraus | Chairman & CEO |
Presented on behalf of company AB (AllianceBernstein) at the 2016 Future of Financials Conference.
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Organizations (5)
| Name | Type | Context |
|---|---|---|
| LM |
An unnamed company, likely an asset manager, discussed in the context of its corporate tax rate and market positioning.
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| AB (AllianceBernstein) |
An asset management firm, subject of a 'Buy' recommendation and financial analysis. Its stock ticker is (AB).
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| Bank of America Merrill Lynch |
The author of the report and host of the conference.
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| DOL (Department of Labor) |
Mentioned in relation to regulations affecting asset managers.
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| HOUSE_OVERSIGHT |
The Bates number 'HOUSE_OVERSIGHT_014354' indicates the document was produced as evidence for a U.S. House of Represe...
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Timeline (2 events)
17 November 2016
2016 Future of Financials Conference hosted by Bank of America Merrill Lynch.
Not specified
17 November 2016
An investor poll was conducted during the conference asking for factors that would increase interest in investing in AB stock.
2016 Future of Financials Conference
Investors
Locations (1)
| Location | Context |
|---|---|
|
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Mentioned in the context of a 'potential U.S. corporate tax rate'.
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Relationships (3)
The text states, 'Presenting from AB was Peter Kraus, Chairman & CEO.'
Bank of America Merrill Lynch
→
provided research and a 'Buy' recommendation on
→
AB (AllianceBernstein)
The document is a BofA Merrill Lynch report that includes a 'Buy' rating for AB.
The footer contains the Bates number 'HOUSE_OVERSIGHT_014354', indicating it was an exhibit for a congressional committee.
Key Quotes (3)
"Presenting from AB was Peter Kraus, Chairman & CEO. Peter expects AB to generate above average organic growth and hopes to accelerate it given its product mix and mostly favorable investment performance."Source
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Quote #1
"When asked what would get you more interested in AB's stock, 55% of investors said they wanted to see consistent positive organic growth..."Source
HOUSE_OVERSIGHT_014354.jpg
Quote #2
"asset managers and distributors need to accept that the industry is living in a new fiduciary world with minimized (potentially no) conflicts of interest which ultimately is a good thing for end clients."Source
HOUSE_OVERSIGHT_014354.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,550 characters)
modified will not likely change the outlook. LM feels its strong positioning in global distribution and product sets bodes well to perform in a new fiduciary world.
Additionally, a lower potential U.S. corporate tax rate will not change its cash tax rate which is likely to be 6-7% through 2021 and in the mid-teens through 2025 after that. However, it would impact GAAP EPS and a lower corporate tax rate would lower the value of LM's DTA.
AB (AB), B-1-8, Buy
Presenting from AB was Peter Kraus, Chairman & CEO. Peter expects AB to generate above average organic growth and hopes to accelerate it given its product mix and mostly favorable investment performance. In addition, he sees the potential for new pricing in the industry, and does not expect a significant change in the DOL impact from the election or a lower corporate tax rate on their tax rate.
When asked what would get you more interested in AB's stock, 55% of investors said they wanted to see consistent positive organic growth, 18% said a better operating margin, another 18% said diversification from fixed income flows (i.e. equity and alternative flows), and only 9% of investors wanted to see a simplified structure and increased float.
Chart 59: What would get you more interested in investing in AB stock?
70%
60%
50%
40%
30%
20%
10%
0%
60%
50%
40%
30%
20%
10%
0%
55%
Consistent positive organic growth
Consistent positive organic growth
18%
Operating leverage and an improving margin
Operating leverage and an improving margin
18%
Further diversification from fixed income flows
Further diversification from fixed income flows
9%
A more simplified structure and increased float
A more simplified structure and increased float
Source: BofA Merrill Lynch Global Research
AB has seen and expects to continue to see above average organic growth (ex 3Q which was weighed down by lumpy institutional outflows) given a relatively new and attractive product set, strong investment performance (notable improvement in recent years), better traction with the consultant community, and opportunities to gain in the retail and private wealth channels.
Regarding potential changes post the election, AB had a similar tone to other asset managers on DOL, in the sense that it likely gets delayed/modestly modified, but regardless of what happens, asset managers and distributors need to accept that the industry is living in a new fiduciary world with minimized (potentially no) conflicts of interest which ultimately is a good thing for end clients. A lower potential corporate tax rate would not likely benefit AB given its tax structure/low current tax rate.
40 2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
Merrill Lynch
HOUSE_OVERSIGHT_014354
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