39 slides from Alliancebernstein Holding L.p's earnings presentation, Jul 26, 2007
Slide 1: Second Quarter 2007 Earnings Review
Gerald M. Lieberman President & Chief Operating Officer Lewis A. Sanders Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. July 25, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements In light of Regulation FD, management will be limited in responding to inquiries from investors or analysts in a non-public forum. Introduction Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation
Slide 3: Market Performance - U.S.
*12 months ending June 30, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - U.S.
Slide 4: Market Performance - Non-U.S.
*12 months ending June 30, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-U.S.
Slide 5: Relative Performance Summary
< Value Equities generally outperformed, with noteworthy strength in non-U.S. services < Growth Equities mostly underperformed, but have achieved a strong start for the current quarter < Fixed Income generally outperformed, with exceptional strength in certain Retail services < Global and Internatio
Slide 6: Changes in Assets Under Management By Channel: Three Months
Three Months Ended June 30, 2007 $ Millions Changes in Assets Under Management By Channel
Slide 7: Changes in Assets Under Management By Channel: Twelve Months
Twelve Months Ended June 30, 2007 $ Millions Changes in Assets Under Management By Channel
Slide 8: Changes in AUM By Investment Service: Three Months
Three Months Ended June 30, 2007 $ Millions Changes in Assets Under Management By Investment Service
Slide 9: Changes in AUM By Investment Service: Twelve Months
Twelve Months Ended June 30, 2007 $ Millions Changes in Assets Under Management By Investment Service
Slide 10: Institutional Investments: Second Quarter Highlights
< Fixed Income services accounted for ~40% of new assets < Global & International services comprised approximately 90% of all new assets < Pipeline of won but unfunded new mandates remains substantial (1) Transfers of certain client accounts were made among distribution channels resulting from chang
Slide 11: Retail: Second Quarter Highlights
< Accelerating organic growth < Substantial growth in U.S. Funds continues < Significant increases in Luxembourg Fund net inflows, driven primarily by Fixed Income sales in Asia < Wealth Strategies services nearly $13 billion in assets, up ~20% sequentially Retail: Second Quarter Highlights
Slide 12: Private Client: Second Quarter Highlights
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. Private Client: Second Quarter Highlights < Record trailing twelve month gross inflows of $16.6 billion < Financial Advisor headcount increased to 317
Slide 13: Institutional Research Services: Second Quarter Highlights
< Revenue up 4% sequentially, led by double-digit growth in the European business < Received strong marks in two leading European research client surveys, consistent with share gains in that market < Launched coverage of three industries in the U.S.: Ø Household/Personal Products Ø Machinery/Capital
Slide 14: Growth in Global Assets
Non-U.S. up 45% Global & Int’l up 50% Total AUM up 27% by Client Domicile by Investment Service $ Billions Total AUM at June 30, 2007 $793 Billion Total AUM at June 30, 2006 $625 Billion Growth in Global Assets
Slide 15: Growth in Blend Strategies Assets
24% 39% 14% (1) Blend Strategies Index/Structured $31 Assets Under Management by Investment Service $793 Billion Blend Strategies AUM $160 Billion (1) (+50% vs. 06/30/06) (1) Includes approximately $6 billion of Blend Fixed Income AUM. 10% 9% 4% $ Billions Growth in Blend Strategies Assets
Slide 16: Growth in Hedge Fund Assets
Assets Under Management $ Billions +35% +18% +50% +45% Growth in Hedge Fund Assets The information in this display is provided solely for use in connection with this presentation and is not directed towards existing or potential hedge fund investors or investment advisory clients of AllianceBernstei
Slide 17: AllianceBernstein Second Quarter Revenues
(1) Includes Shareholder Servicing, Investment Gains (Losses) and Other Revenues. NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Second Quarter Revenues
Slide 18: AllianceBernstein Second Quarter Advisory Fees
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. AllianceBernstein Second Quarter Advisory Fees
Slide 19: AllianceBernstein Second Quarter Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Second Quarter Operating Expenses
Slide 20: AllianceBernstein Second Quarter Compensation & Benefits
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Second Quarter Compensation & Benefits
Slide 21: AllianceBernstein Second Quarter Net Income
(1) Operating Income as a percentage of net revenues. NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Second Quarter Net Income
Slide 22: AllianceBernstein Holding Financial Results
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions (except per-Unit amounts) AllianceBernstein Holding Financial Results
Slide 23: AllianceBernstein - 2Q07 Earnings Highlights
< Strong quarter for our Value Equity and Fixed Income services < Continued organic growth in all channels < AUM growth once again driven by Global and International services and non-U.S. clients < Strong second quarter financial results < Updated full year 2007 earnings guidance estimate of approxi
Slide 24: -ALLIANCEBERNSTEIN
2B -ALLIANCEBERNSTEIN
Slide 25: -ALLIANCEBERNSTEIN
2B -ALLIANCEBERNSTEIN
Slide 26: Index Returns
S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Lehman Aggregate Bond Returns Annualized Cumulative 2Q07 One Year Three Years Three Years 63 206 17 39.3 69 190 a7 28.5 43 219 189 55.8 15.0 450 38.2 164.0 64 270 22.2 827 65 236 167 59.0 0.5) 64 40 124
Slide 27: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 28: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 29: Relative Performance: Blend Strategies Services (After Fees)
Relative Performance: Blend Strategies Services (After Fees) (1)
Slide 30: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 31: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees) (1)
Slide 32: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 34: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 35: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 36: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception- Jun 2007 Alliance Growth Equities Inception Date AllianceBernstein Style Blend AllianceBernstein Fixed Income Net-of-Fee Annualized Relative Performance Premiums Inception- Jun 2007 Investment Performance: Delivering Results for Clients AllianceBern
Slide 37: AllianceBernstein Consolidated Balance Sheet
In $ Thousands, Unaudited AllianceBernstein Consolidated Balance Sheet
Slide 38: AllianceBernstein Consolidated Statement of Cash Flows
In $ Thousands, Unaudited AllianceBernstein Consolidated Statement of Cash Flows
Slide 39: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P. - For AllianceBernstein L.P. - use only