Unless things have changed, these guys “cover” the Tax and Estate Planning

Attorneys in major cities. Many years ago, Sanford C. Berstein, had a very

good reputation among the country club crowd.



I don’t know post the Alliance Mutual Funds merger.

The Alliance Bernstein model is to recruit people who are strong in a particular niche (like DC-9 engineers) - then firehose them with corporate kool-aid.  You then go back to your niche and shepherd in people.

We had a 2 day seminar with Alliance Bernstein that talked about how their Private Wealth Mangers do it. 

It's all about building the relationships with CPAs and estate attorneys.  They have a very defined process with precise topics etc. for each of the first 3-5 meetings.  If I remember correctly, In 2005 the AVERAGE AB Private Manager brought in something like $85mm.  Once the money is in, they have nothing to do with the money management, they just manage the relationships.

On another note, I was at a small dinner 2 years ago with Ranji Nagaswami (dfenite spelling error) who is their chief market strategist or something.  I was blown away by her.  Since that time I've done more Alliance Bernstein funds than any other fund company.

You can punch holes in Bernstein. They use proprietary investment managers, have limited or no capabilities in AI, and these guys are asset gaterers only.

That being said, they have a defined and repeatable process and they get it done. The number for average FA inflow was more like 50M last year- ridiculous....

Any more detail on how they approach CPAs and Estate guys?  Is this somthing you wirehouse people try and do?

Is this somthing you wirehouse people try and do?



I don’t know what the training programs consist of these days at wirehouses.

But when I went through it, it was "Here’s your desk, your phone, and 1000

D&B cards. Now, pitch 'em this new closed-end fund. I want to see you

book at least 10,000 shares."



Bernstein and a few other organizations have a homogenous team.

Everyone uses the same playbook, same script, same product. Its not

brokerage, its asset management, Big Difference.

[quote=futureadvisor]Any more detail on how they approach CPAs and Estate guys?  Is this somthing you wirehouse people try and do?[/quote]

Check with your local AB wholesaler.  They have a whole program where they show non AB advisors what they do - I'm sure it is by no means as comprehensive as the training that the Bernstein advisors go through but it certainly is a good overview.  The wholesaler in our region is more than happy to talk about it.  I think they actually have a teaching module on it.

I know its not exactly the same as brokerage but they are still targeting the same clients even though they may do it a little differently.  Is there a reason why this approach would not work at a wirehouse, they seem to be quite successful doing it?  I am not a broker so I don't have a wholesaler... 

oh boy…here we go again.

Thanks everybody for their insight. Does anyone have any knowledge of their compensation structure?

[quote=dedub01]Thanks everybody for their insight. Does anyone have any knowledge of their compensation structure? [/quote]

I think it's eleventy kabillion dollars.

couldn't resist

[quote=NOFX]

[quote=dedub01]Thanks everybody for their insight. Does anyone have any knowledge of their compensation structure? [/quote]

I think it's eleventy kabillion dollars.

couldn't resist

[/quote]

Why resist?

Good man!