Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q3 2007 Earnings Presentation
39 slides from Alliancebernstein Holding L.p's earnings presentation, Oct 25, 2007
Slide 1: Third Quarter 2007 Earnings Presentation
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. October 24, 2007
Slide 2: Forward-looking statements and Regulation FD
In light of Regulation FD, management will be limited in responding to inquiries from investors or analysts in a non-public forum. Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-lookin
Slide 3: Market Performance - U.S.
*12 months ending September 30, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - U.S.
Slide 4: Market Performance - Non-U.S.
*12 months ending September 30, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-U.S.
Slide 5: Relative Performance Summary
< Growth services performed especially well < Value services were weak < Fixed Income services were slightly negative < Hedge fund returns were disappointing, especially in diversified services < Blend Strategies were respectable, with strength in U.S. and International services and weakness in Emer
Slide 6: Changes in AUM by Channel - Three Months
Three Months Ended September 30, 2007 $ Millions Changes in Assets Under Management By Channel
Slide 7: Changes in AUM by Channel - Twelve Months
Twelve Months Ended September 30, 2007 $ Millions Changes in Assets Under Management By Channel
Slide 8: Changes in AUM by Investment Service - Three Months
Three Months Ended September 30, 2007 $ Millions Changes in Assets Under Management By Investment Service
Slide 9: Changes in AUM by Investment Service - Twelve Months
Twelve Months Ended September 30, 2007 $ Millions Changes in Assets Under Management By Investment Service
Slide 10: Institutional Investments: Third Quarter Highlights
< Value and Blend services accounted for 80% of all new accounts < Global and International services accounted for approximately 86% of all new accounts < The pipeline of won but unfunded new mandates remains substantial, but declined somewhat in the quarter < Defined Contribution gaining traction i
Slide 11: Retail: Third Quarter Highlights
< Substantial growth in U.S. Funds offset by: Ø Non-U.S. weakness Ø Increased investment minimums on certain SMA services < “Investment Strategies for Life” growing worldwide: Ø Wealth Strategies services ~$14 billion in assets (2) Ø Retirement Strategies (over $1 billion in AUM) received stellar re
Slide 12: Private Client: Third Quarter Highlights
Private Client: Third Quarter Highlights < Record trailing twelve month gross and net inflows of $18.3 billion and $9.5 billion, respectively < Financial Advisor headcount increased to 341 - up 17% from September 2006
Slide 13: Institutional Research Services: Third Quarter Highlights
< Revenue up 18% versus third quarter 2006; strongest quarter on record primarily attributable to double-digit growth in Europe < Initiated coverage of Southern European banking sector; robust global pipeline for additional coverage < Excellent results in Institutional Investor ’s recently released
Slide 14: Growth in Global Assets
by Client Domicile by Investment Service $ Billions Total AUM at September 30, 2007 $813 Billion Total AUM at September 30, 2006 $659 Billion Growth in Global Assets
Slide 15: Growth in Blend Strategies Assets
24% 39% 14% (1) Blend Strategies Index/Structured $25 3% Assets Under Management by Investment Service $813 Billion Blend Strategies AUM $173 Billion (1) (+48% vs. 9/30/06) (1) Includes approximately $6 billion of Blend Fixed Income AUM. 10% 10% $ Billions Growth in Blend Strategies Assets
Slide 16: Growth in Hedge Fund Assets
investment advisory clients of AllianceBernstein. Assets Under Management $ Billions +35% +18% +50% 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 +23% -5% +18% Growth in Hedge
Slide 17: AllianceBernstein Third 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 Third Quarter Revenues
Slide 18: AllianceBernstein Third Quarter Advisory Fees
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. AllianceBernstein Third Quarter Advisory Fees
Slide 19: AllianceBernstein Third Quarter Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Third Quarter Operating Expenses
Slide 20: AllianceBernstein Third Quarter Compensation & Benefits
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions AllianceBernstein Third Quarter Compensation & Benefits
Slide 21: AllianceBernstein Third 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 Third 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 - 3Q07 Earnings Highlights
< Growth services performed exceptionally well; Value services were weak < Diversified Hedge Fund services were disappointing < Strong organic growth in Private Client offset by Institutional Investments outflows < AUM growth once again driven by Global and International services and non-U.S. client
Slide 24: -ALLIANCEBERNSTEIN
2B -ALLIANCEBERNSTEIN
Slide 25: -ALLIANCEBERNSTEIN
2B -ALLIANCEBERNSTEIN
Slide 26: Market index returns through September 30, 2007
Annualized Cumulative 3Q07 One Year Three Years Three Years S&P 500 20 164 13.4 448 Russell 1000 Growth 42 194 122 412 Russell 1000 Value 0.2) 145 153 534 MSCI Emerging Markets 144 58.2 40.8 179.3 MSCI EAFE 22 249 23.2 87.2 MSCI World 24 244 18.0 644 Lehman Aggregate Bond 28 54 39 12.0 Retums in % t
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
Nomura, Russell Investment Group, Scotia Capital, S&P, TOPIX, and AllianceBernstein. Bernstein Value Equities Inception Date Inception- Sep 2007 Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan
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: Trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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