AllianceBernstein dealt investors some bad news during yesterday's release of its earnings review for the second quarter of 2009. The asset manager's second-quarter net income tumbled 54 percent from $280 million from Q2 of last year to $128 million this quarter, "with sharply reduced revenue only partially offset by expense reductions," company executives said.

The New York-based investment manager saw net revenues drop 32 percent from $1.06 billion to $721 million in the year-ago period.

Compared to the first quarter, mutual fund gross sales are up 49 percent and fund redemptions are down 22 percent.

Executives also said fixed income brand development is "bolstering" net inflows and sub-advisory de-risking may be declining.

Total AUM decreased 38 percent from Q2 of last year, falling from $717 million to $447 billion by this quarter's end. Its retail channel contributed $123 million, down 43 percent from the $215 million it contributed a year earlier, to the total AUM for this second quarter. 

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