Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Citi Financial Services Conference 2012
26 slides from Alliancebernstein Holding L.p's conference presentation, Mar 9, 2012
Slide 1: Citi Financial Services Conference
March 8, 2012 Citi Financial Services Conference Peter S. Kraus Chairman & Chief Executive Officer Sharon E. Fay Head of Equities and Chief Investment Officer - Global Value ALLIANCEBERNSTEIN
Slide 2: Peter S. Kraus
Peter S. Kraus Chairman & Chief Executive Officer B 4
Slide 3: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements Certain statements provided by management in this presentation are “forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other fac
Slide 4: AllianceBernstein: Diversified and Global
AllianceBernstein: Diversified and Global Assets Under Management: $421 Billion* By Strategy By Channel By Client Domicile Alternatives Prer 3% Private location Ghent Nant Equities ex-Large Cap™* Retail W237 Large 5 US Cap Fixed _ Equities Income Institutions *Preliminary as of January 31, 2012. Ass
Slide 5: Sanford C. Bernstein — Industry-Leading Sell-Side Research
Sanford C. Bernstein — Industry-Leading Sell-Side Reseai Growing Global Footprint stop = ~400 Employees in 8 offices in the US, Europe and Asia San Franti London”! = 62 Fundamental & Quantitative Senior Research Analysts Los Angeles NewYork: 7 “Ane i Worldwide Hong Kong Singapore = Growth driven by
Slide 6: Evolution of Our Business
Evolution of Our Business Dec 08: $221B 49% of Firm Total Feed Equities ex- Income Large Cap" Asset Allocation [Large Cap | $5 Alternatives Equities: $2288 Dec 08: $703M 36% of Firm Total Fixed Equities ex- Income Large Cap" Asset ™ Allocation Large Cap $32 Alternatives Equities: $1.28 “includes Sma
Slide 7: Progress on Our Strategy in 2011
Progress on Our Strategy in 2011 Firmwide Initiative Progress Improve investment performance and restore client confidence Diversify our business across channels, investment services and geographies | Three-year run of outperformance in Global Fixed Income — top quartile rankings in US Core, Emergin
Slide 8: Continuing Our Strategy in 2012
Continuing Our Strategy in 2012 Firmwide Initiative Progress z ® Actions taken to maintain our strong commitment to long-standing services Improve investment while evolving to meet client needs performance and restore Client confidence Leverage both core strengths and new talent to enhance our clien
Slide 9: Sharon E. Fay
Sharon E. Fay Head of Equities and Chief Investment Officer - Global Value B 8
Slide 10: Positioning Our Equity Practice
Positioning Our Equity Practice m= What happened? m= What have we learned? m= What are we doing? B °
Slide 11: Growth and Value Stocks Simultaneously Collapsed
Growth and Value Stocks Simultaneously Collapsed Global Fundamental Factor Return Spreads Annualized 2008-2011 Long-Term Average* Value Stocks** 9 9 Low Price to Book, Price to Earnings (4.3)% 8.0% Growth Stockst 9 9 Earnings Revisions, Momentum GB.9)% 7.0% ‘As of December 31, 2011 “Long-term averag
Slide 12: Growth and Value Stocks Simultaneously Collapsed, cont'd.
Growth and Value Stocks Simultaneously Collapsed, cont’d. Global Fundamental Factor Return Spreads Rolling Three-Year Periods 20 10 5 2 Surging o : a Inflation 0 - Enron “Crisis. Tech Bubble Credit Crunch (10) 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 O7 09 11 Through December 31, 2011 ‘A.b
Slide 13: A Difficult Environment for Active Managers
A Difficult Environment for Active Managers Percentage of Active Managers That Have Outperformed Benchmarks Global Active Managers US Active Managers 9 52.0% 48.9% 39.1% a a 2000-2011 2011 2000-2011 2011 Average Average As of December 31, 2011 Global Active Managers based on a Lipper universe of 274
Slide 14: Our Traditional Large-Cap Equities Services Have Underperformed
Our Traditional Large-Cap Equities Services Have Underperformed Relative Returns of Select Services Inception through 12/31/07 6.1% = Inception through 12/31/11 5.5% 3.8% 3.3% 3.2% 24% 1.8% 2.1% ; = | i Global Research US Large Cap Global International US Strategic Growth Growth* Value Value Value I
Slide 15: Evolving Market Dynamics: Reaction and Response
Evolving Market Dynamics: Reaction and Response = Volatility = Flight to safety » Protect them, maintain returns e Earnings @ Intolerance for instability » Focus on long term @ Stock Prices @ Macroeconomics m Fear of equities » Mitigate damage mLack of Visibility = Fear of Catastrophe
Slide 16: Positioning Our Equity Practice
Positioning Our Equity Practice m= What happened? mg What have we learned? m= What are we doing? B 15
Slide 17: What Have We Learned?
What Have We Learned? = Traditional Growth and Value strategies are challenged in volatile markets m= We can deliver strategies that cope better with extreme turbulence = To take a more focused and strategic approach to managing our business e Focus our efforts on fewer services that have broader ap
Slide 18: Positioning Our Equity Practice
Positioning Our Equity Practice m= What happened? m= What have we learned? mg What are we doing? 7B 7
Slide 19: Our Equity Practice: Actions We're Taking
Our Equity Practice: Actions We’re Taking ici Bolster Efforts Reduce Overlap Diversify on Key Strategies and Leverage Expertise Equity Lineup & Simplify product lineup Simplify product lineup m= Evolve capabilities to meet client needs Reduce overlap and e Thematic @ Further align senior talent leve
Slide 20: Aligning Our Staff and Assets
Aligning Our Staff and Assets AllianceBernstein Equities* AUM by Investment Discipline Total = US$125 Billion Specialty Equities -» 20 people $5B Team reduced from <— Value 75 to 67 people $81B Growth —> Team reduced from $39B 62 to 39 people “Assets Under Management (AUM) stated in USD and are as o
Slide 21: Meeting Client Needs Across the Risk/Return Spectrum
Meeting Client Needs Across the Risk/Return Spectrum Return Focus Risk Focus Search for return, with a willingness to take risk Deep Value Low price/book Low price/cash earnings Growth High return on invested capital Better-than-expected earnings growth Thematic Early identification of disruptive or
Slide 22: Range of Equities Delivers Different Return Patterns
Range of Equities Delivers Different Return Patterns Relative Returns - 2011 a 8.4% 8.1% 6.5% 27% 32% 3.3% | Ts = (1.5)% (4.79% — (4.1)% ym 80% (9.6)% Global _ US Int! Global. «=U us us US Select Global. «US. us Value Strategic Value Research Large Small Small Equity Us Market Relative Market Value
Slide 23: Range of Equities Delivers Different Return Patterns
Range of Equities Delivers Different Return Patterns Relative Returns — 2012 Year-to-Date 23% 2.9% 24% 24% «2.5% BT 2.4% 2.1% EEEEEEE — (1.0)% — (0.8)% US Global Int! us US Global = US_— Select» US. US Global ~—sUS Large Value Value Strategic Small Research Small US Equity Market Market Relative Cap
Slide 24: Looking Ahead: Where Do We Want to Be?
Looking Ahead: Where Do We Want to Be? m= Performance premiums restored = Substantial commitment to global research = Industry-leading, focused portfolio- management teams = Clear accountability; incentives aligned with client success = The ability to innovate to meet client needs =A culture defined
Slide 25: AllianceBernstein.com
AllianceBernstein.com
Slide 26: ALLIANCEBERNSTEIN
7B ALLIANCEBERNSTEIN
AllianceBernstein Holding — Citi Financial Services Conference 2012 on 6ix