BOSTON (Reuters) - AllianceBernstein Holding LP (AB.N: Quote, Profile, Research), the money management group, reported an 8 percent drop in quarterly profit on Wednesday, missing Wall Street estimates as markets tumbled and investors pulled money out.

The New York-based company said first-quarter net income fell to $72.4 million, or 83 cents a unit, from $78.5 million, or 91 cents a unit, a year ago.

Wall Street analysts expected earnings of 93 cents a unit, according to Reuters Estimates.

"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.

The company offers many international stock funds, which have held up better than U.S. funds recently, but assets under management still declined 1 percent to $735 billion, the company said.

Alliance suffered net outflows of $1.5 billion as retail investors pulled out $4.4 billion during the first three months and inflows from institutional investors were not enough to offset the trend.

The distribution per unit will be 83 cents, payable May 15 to holders of record May 5.

(Reporting by Svea Herbst-Bayliss; Editing by Andre Grenon/Jeffrey Benkoe)