Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management Holding — Salomon Smith Barney Global Asset Management Conference (November 2001)
23 slides from Alliancebernstein Holding L.p's conference presentation, Nov 14, 2001
Slide 1: Salomon Smith Barney Global Asset Management Conference
EXHIBIT 99.13 Alliance Capital Salomon Smith Barney Global Asset Management Conference Bruce W. Calvert Chairman and CEO November 13, 2001 Forward-Looking Statements Certain statements provided by Alliance Capital Management L.P. (“Alliance Capital”) and Alliance Capital Management Holding L.P. (“Al
Slide 2: About Alliance Capital – Ownership Structure and Investment Considerations
* Equitable Companies Incorporated, an indirect parent of The Equitable Life Assurance Society of the United States, changed its name to AXA Financial, Inc. in September 1999 About Alliance Capital – Ownership Structure Unit Ownership Alliance Capital Beneficial Ownership If all unexercised options
Slide 3: About Alliance Capital – AUM By Investment And Client Orientation
Current price, value, market capitalization, and yield as of 11/6/01. AUM as of 9/30/01. About Alliance Capital – AUM By Investment And Client Orientation $421 Billion at September 30, 2001 Investment Orientation Client Orientation Amounts in $ billions. Equity includes assets from balanced portfoli
Slide 4: Our Mission; A Global Platform Resourced To Provide Superior Performance
Our Mission To be the premier global research and investment management organization through superior performance across a broad range of investment disciplines for a diverse group of clients A Global Platform Resourced To Provide Superior Performance Fixed Equity Income Other Total Buy-Side Analyst
Slide 5: Across A Broad Range Of Active, Research-Based Disciplines For A Diverse Group Of Clients
Buy-Side 27 10 – 37 Sell-Side 30 – – 30 Floor 23 – – 23 Corporate Finance/Other – – 11 11 TOTAL 479 153 14 646 As of September 30, 2001. Includes investment professionals and analysts from joint venture affiliates and non-key investment locations. Across A Broad Range Of Active, Research-Based Disci
Slide 6: Delivering Superior Returns Through A Steady Flow of Cash Distributions
For The Purpose Of Delivering Superior Returns To Investors *As of 9/30/01. AC and S&P returns include reinvestment of cash distributions and dividends, respectively. **Since IPO 4/88. Through A Steady Flow of Cash Distributions
Slide 7: Third Quarter Highlights; Market Environment Remains Difficult
Distributions per Unit are adjusted for two-for-one Unit split in 1998. *Based on LTM distributions for periods from3Q96 through 3Q01. Third Quarter Highlights All information compared to Second Quarter 2001 · AUM declined $44 billion, or 9%, to $421 billion · Market depreciation of $50 billion · Ne
Slide 8: Market Depreciation Causes AUM Decline; Net New Business Strengthened by Product Diversity
Market Depreciation Causes AUM Decline Institutional Private Retail Inv Mgmt Client Total • June 2001 AUM* $ 164 $ 262 $ 39 $ 465 • Net New Business** 1 3 1 4 • Wrap Net Redemptions (2 ) – – (2 ) • Cash Management 2 2 – 4 • Market Depreciation (19 ) (29 ) (2 ) (50 ) • Sept 2001 AUM $ 146 $ 238 $ 37
Slide 9: Return Premium – Institutional Investment Management Services
Growth Oriented Services Emerging Large Cap Disciplined Multi Cap Small Cap Intl Lg Cap Market Growth (2) Growth(2) Growth(3) Growth(4) Growth(5) Growth(6) QTR +2.0 -2.0 -2.6 +0.4 +1.1 -2.7 YTD +3.8 -0.4 -3.1 -0.7 +2.6 -5.8 1yr +8.2 +3.4 +1.1 +3.2 +4.0 -6.5 3yr +4.5 +1.4 +2.2 +10.6 +7.2 +4.5 5yr +6.
Slide 10: Return Premium – Retail Services; Expenses Decline 4.5% from Second Quarter
Return Premium – Retail Services Retail Mutual Funds vs. Lipper Averages Premier Growth & AB Disc Global Growth North Amer Growth(1) Technology(2) Income(3) Value(3) Trends(4) Govt Trust(5) QTR +0.3 +3.6 -1.4 -4.8 +8.1 -4.0 YTD +1.4 +8.9 -0.2 +6.3 +2.0 +1.6 1yr +1.6 +9.6 -2.3 +7.7 +0.9 +3.3 3yr -1.5
Slide 11: Alliance Holding Per Unit Financial Highlights; Retail Highlights
Alliance Holding Per Unit Financial Highlights 3Q01 2Q01 % chg • Diluted Net Income $0.51 $0.56 -9 % • Amortization of Intangible Assets 0.17 0.16 +6 • Net Operating Earnings $0.68 $0.72 -6 % • Base Fee Earnings $0.66 $0.68 -3 % • Performance Fee Earnings 0.02 0.04 -50 • Net Operating Earnings $0.68
Slide 12: Changes in Retail AUM by Investment Orientation
• June 2001 AUM* $ 86 $ 24 $ 39 $ 15 $ 164 • Long-Term Product Net Sales 1 1 – (2 ) – • Cash Management Net Sales 2 – – – 2 • Cash Flow/Unreinvested Dividends (1 ) – – – (1 ) • Net New Business 2 1 – (2 ) 1 • Market Depreciation (9 ) (2 ) (6 ) (2 ) (19 ) • Sept 2001 AUM $ 79 $ 23 $ 33 $ 11 $ 146 * J
Slide 13: AllianceBernstein Institutional Investment Management Highlights
Amounts in $ millions. AllianceBernstein Institutional Investment Mgmt Highlights • AUM down 9% from June 30 • Revenues down 4% from 2Q • 58 new separate account wins totaled $4.2 billion in AUM; year-to-date account wins totaled $27.2 billion • Net new inflows were $4.6 billion, $3.7 billion over 2
Slide 14: Balanced Mix of Separately Managed Account Wins; Private Client Highlights
Growth Value Fixed Equity Equity Income Passive Total • June 2001 AUM* $105 $54 $74 $29 $262 • Long-Term Net Sales 2 1 – – 3 • Cash Management Net Sales – – 2 – 2 • Net New Business 2 1 2 – 5 • Market Depreciation (19 ) (6 ) – (4 ) (29 ) • Sept 2001 AUM $88 $49 $76 $25 $238 * June 30, 2001 assets un
Slide 15: Institutional Research Services Highlights; Positioned For Growth
• AUM down 4% from June 30 • Revenues up 2% from 2Q • Net new flows of $846 million • Positive inflows every month this year • Established office in Minneapolis in 3Q; Miami and Houston offices scheduled to open in early 2002 • Increased number of financial advisors 20% through September 2001; plan
Slide 16: Performance Disclosure
• Broad array of fixed income services • Highly regarded marketing and client service teams • Well-positioned in retail, institutional and private client channels • Continued underlying business strength • Strong financials • Cogent strategy Performance Disclosure Alliance Capital Management L.P. Al
Slide 17: Bernstein Investment Research & Management Unit Performance Disclosure
No representation is made that the performance of these investment accounts are indicative of future performance. Performance figures for each account are calculated monthly on a trade-date basis using an internal rate of return calculation. Monthly market values include income accruals and reflect
Slide 18: Appendix: Alliance Capital Consolidated Balance Sheet
Alliance Capital Management L.P. – Bernstein Investment Research & Management Unit Investment Management Fees and Notice to Financial Consultants - Bernstein has published investment management fee schedules for varying sizes of accounts, which are described in our Form ADV. The following before-fee
Slide 19: Consolidated Cash Flow; Changes in AUM by Client
Total Liabilities and Partners' Capital $ 7,280,160 $ 8,270,762 Amounts in $ thousands. Unaudited Alliance Capital (The Operating Partnership) Consolidated Cash Flow Nine Months Ended 9/30/01 9/30/00 Cash Flows From Operating Activities: Net income $ 463,832 $ 520,491 Non-cash items: Amortization an
Slide 20: Changes in AUM by Investment Orientation; Market Share of Mutual Fund Gross Sales
End of Period $ 146,372 $ 237,778 $ 37,252 $ 421,402 Note: June 30, 2001 assets under management have been reclassified. Assets reflect 100% of the assets managed by the Joint Ventures. Amounts in $ millions. Changes in AUM by Investment Orientation Three Months Ended September 30, 2001 Growth Value
Slide 21: A Diverse Retail Mix; Retail AUM and Net Flows
A Diverse Retail Mix $146 Billion at September 30, 2001 Amounts in $ billions. Alliance Capital (The Operating Partnership) Retail AUM and Net Flows Quarters AUM Net Flows Net Flows Net Flows 9/30/01 3Q 2001 2Q 2001 3Q 2000 U.S. Based Mutual Funds $ 47,511 $ 335 $ 869 $ 2,113 Non-U.S. Based Mutual F
Slide 22: Institutional and Private Client AUM and Net Flows
Quarters AUM Net Flows Net Flows Net Flows 9/30/01 3Q 2001 2Q 2001 3Q 2000 Mutual Funds U.S. Based $ 876 $ (56 ) $ 177 $ 60 Non-U.S. Based: Luxembourg - - - - Structured Products - (288 ) (274 ) (988 ) Other 3,607 - (1 ) (1 ) Total Non-U.S. 3,607 (288 ) (275 ) (989 ) Separate Accounts 221,310 3,211
Slide 23: Service Channel Definitions
· hedge funds, · structured products, and · group trusts; 3. Private Client Services consists of investment management services provided to high net worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations and other entities by means of: · separate