AllianceBernstein Considers Moving Some Staff Away From New York
October 11 2017 - 3:03PM
Dow Jones News
By Sarah Krouse
AllianceBernstein Holding LP is in talks to shift some staff out
of New York in the latest example of money managers trying to cut
expenses as investors plow money into index-tracking funds with
lower fees.
The plans, unlikely to be completed until late 2018, are part of
a broad cost-cutting effort at the money manager as its parent
insurer AXA SA prepares an initial public offering of a combined
U.S. life insurance and asset management firm, according to people
familiar with the matter. AllianceBernstein is considering moving
staff to locations including Charlotte, N.C., where AXA is
expanding its footprint, and San Antonio, where AllianceBernstein
already has an office.
No final decisions have been made and the firm may ultimately
decide to keep its staff in New York, the people said. The firm's
chief executive told staff in a town hall meeting last week that it
was considering a number of options for its real estate footprint,
including moving some staff out of state, one of the people
said.
Money managers are trying to trim costs amid unprecedented
changes in the economics of their industry as investors shift money
out of active funds managed by stock pickers and into passive index
and exchange-traded funds. Many investors have lost faith in
so-called active managers' ability to pick winners and have opted
to instead pay less to match the performance of an index.
Those funds have gained even more momentum in recent months as
stock markets have reached new highs.
Write to Sarah Krouse at sarah.krouse@wsj.com
(END) Dow Jones Newswires
October 11, 2017 14:48 ET (18:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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