43 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 24, 2008
Slide 1: First Quarter 2008 Review
First Quarter 2008 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. April 23, 2008
Slide 2: Cautions regarding Forward-Looking Statements
Proprietary - For AllianceBernstein L.P. use only 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
Slide 3: Market Performance - U.S.
*12 months ending March 31, 2008. Market Performance - U.S.
Slide 4: Market Performance - Non-U.S.
*12 months ending March 31, 2008. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-U.S.
Slide 5: Relative Investment Performance Summary: 1Q08
Proprietary - For AllianceBernstein L.P. use only < Growth equity services were weak < Value equity services returns were below benchmarks < Fixed income relative returns were generally below targets; municipal bond services outperformed < Diversified hedge fund services returns remained negative Re
Slide 6: Changes in Assets Under Management by Channel (Three Months)
Three Months Ended March 31, 2008 $ Billions Changes in Assets Under Management by Channel
Slide 7: Changes in Assets Under Management by Channel (Twelve Months)
Twelve Months Ended March 31, 2008 $ Billions Changes in Assets Under Management by Channel
Slide 8: Changes in Assets Under Management by Investment Service (Three Months)
Three Months Ended March 31, 2008 $ Billions Changes in Assets Under Management by Investment Service
Slide 9: Changes in Assets Under Management by Investment Service (Twelve Months)
Twelve Months Ended March 31, 2008 $ Billions Changes in Assets Under Management by Investment Service
Slide 10: Institutional Investments Highlights: 1Q08
Proprietary - For AllianceBernstein L.P. use only < Global and International services accounted for approximately 91% of new assets in 1Q08 < Fixed Income represented 30% of new assets in 1Q08 < Pipeline up from 4Q07 to over $16 billion Ø Includes nearly $6 billion of defined contribution mandates (
Slide 11: Retail Highlights: 1Q08
Proprietary - For AllianceBernstein L.P. use only < Net outflows driven by: Ø Both U.S. and non-U.S. Ø Primarily in Equity services < “Investment Strategies for Life” (2) net inflows largely offset market depreciation; AUM ~$23 billion (1) Transfers of certain client accounts were made among distrib
Slide 12: Private Client Highlights: 1Q08
Private Client Highlights: 1Q08 < Modest net inflows despite market turbulence < Financial Advisor headcount at 334 - up 6% versus 1Q07
Slide 13: Institutional Research Services Highlights: 1Q08
Proprietary - For AllianceBernstein L.P. use only < Record quarterly revenue of $118.3 million, up 20% Y/Y < U.S. revenues particularly strong, with Europe also up < Launched capability to trade listed options of U.S. equities Institutional Research Services Highlights: 1Q08
Slide 14: Global Asset Mix
Non-U.S. up 8% Global & Int’l up 9% Total AUM down 1% by Client Domicile by Investment Service $ Billions Total AUM at Mar 31, 2008 $735 Billion Total AUM at Mar 31, 2007 $742 Billion Global Asset Mix
Slide 15: Blend Strategies AUM
38% Blend Strategies up 8% F.I. $202 28% Value $266 36% Growth $95 13% F.I. $183 25% Value $281 38% Growth $107 14% Global & Int’l up 13% $ Billions (1) 1Q08 and 1Q07 Blend Strategies AUM include approximately $7 billion and $6 billion of Blend Fixed Income/Index AUM, respectively. Blend Strategies
Slide 16: Alternative Investment Services AUM
($ Billions) +35% 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 AllianceBernstein. +50% +35% -1% *Consists of Hedge Funds, Currency and Venture C
Slide 17: First Quarter 2008 Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. First Quarter 2008 Revenues
Slide 18: First Quarter 2008 Advisory Fees
Proprietary - For AllianceBernstein L.P. use only NOTE: Percentages are calculated using AUM and revenues rounded to the nearest thousand. First Quarter 2008 Advisory Fees
Slide 19: First Quarter 2008 Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions First Quarter 2008 Operating Expenses
Slide 20: First Quarter 2008 Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. $ Millions First Quarter 2008 Compensation & Benefits
Slide 21: First Quarter 2008 Net Income
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions First Quarter 2008 Net Income
Slide 22: Holding Financial Results
NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. $ Millions (except per Unit amounts) Holding Financial Results
Slide 23: AllianceBernstein trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
Slide 24: Q&A
7B ALLIANCEBERNSTEIN Q&A Fist Quarter 2008 Review Proprietary - For AlianceBlernstein LP. use only AllianceBernstein| 24
Slide 25: Appendix
7B ALLIANCEBERNSTEIN Appendix Fist Quarter 2008 Review Proprietary - For AlianceBiernstein LP. use only AllianceBernstein | 25
Slide 26: Index returns through March 31, 2008
S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Lehman Aggregate Bond Returns in % through March 31, 2008. First Qua 1908 One Year @4) 6.1) (10.2) (0.7) @7) (10.0) (11.0) 213 6.9) (2.7) @.1) @.3) 22 77 Proprietary - For AlianceBiernstein LP. use only Annuali
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)
Proprietary - For AllianceBernstein L.P. use only Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 31: Absolute Performance: Private Client (After Fees)
Proprietary - For AllianceBernstein L.P. use only 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)
Proprietary - For AllianceBernstein L.P. use only 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- Mar 2008 Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan Chase, Lehman Brothers, Merrill Lynch, MSCI, Nomura, Russell Investment Group, Scoti
Slide 37: Consolidated Balance Sheet
In $ Million Consolidated Balance Sheet
Slide 38: Consolidated Statement of Cash Flows
Proprietary - For AllianceBernstein L.P. use only In $ Millions Consolidated Statement of Cash Flows
Slide 39: Headcount Growth
Headcount up 12% versus 1Q07 and flat sequentially Headcount Growth
Slide 40: 20,000 $16,857 15,000 $13,354 10,663 * $9,568 10,000 $8,303 $8,452 5,000 $792 0 =
20,000 $16,857 15,000 $13,354 10,663 * $9,568 10,000 $8,303 $8,452 5,000 $792 0 = | 2Q06 3Q06 4Q06 1907 2007 3007 4Q07 1008 ($1,500) (5,000) Fist Quarter 2008 Review Proprietary - For AlianceBiernstein LP. use only AllianceBernstein | 40
Slide 41: Net Flows by Distribution Channel
Net Flows by Distribution Channel $ Millions
Slide 42: Net Flows by Investment Service
Net Flows by Investment Service $ Millions
Slide 43: AllianceBernstein trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.