AllianceBernstein, the US investment management company, has reported an 8 per cent drop in quarterly profits, also missing analysts' estimates as markets tumbled and investors pulled money out.

The New York-based company said first-quarter net income fell to $72.4 million from $78.5 million a year ago.

"Turbulent capital market conditions negatively impacted first quarter results for our clients and the firm," Alliance Bernstein chairman and chief executive Lewis Sanders said in a statement.

Assets under management were $735 billion at 31 March 2008, a 1 per cent fall from a year ago, Alliance Bernstein said. Net outflows for the quarter were $1.5 billion. However, within that figure, private clients gave rise to net inflows of $400 million.

Over the 12 months to 31 March, private clients put a net $5.4 billion into the business.