Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Investor Presentation (September 2020)
17 slides from Alliancebernstein Holding L.p's investor presentation, September 2020
Slide 1: The AB Investment Opportunity
September 2020 THE AB INVESTMENT OPPORTUNITY PRESENTATION FOR THE INVESTMENT COMMUNITY
Slide 2: The AB Investment Opportunity
The AB Investment Opportunity Differentiated investment performance and distribution capabilities driving sustained best-in-class Sustained Growth organic growth and accelerating inorganic growth opportunities Demonstrated expansion in higher-fee, persistent-AUM alternatives platforms Expanding
Slide 3: Sustained and Differentiated Investment Performance
Sustained Growth Sustained and Differentiated Investment Performance… Percentage of Assets Outperforming at Quarter- End Equities Fixed Income 91 5-yr. 3-yr. 91 88 89 90 91 89 90 92 5-yr. 3-yr. 85 83 84 80 80 81 73 70 67 64 62 62 64 53 45 2015 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 2Q20 T
Slide 4: Has Driven Scale and Net Flows Across Our Platform
Sustained Growth …Has Driven Scale and Net Flows Across Our Platform… AUM Growth of Key Products Select Growth Equities Products* High Yield 70 70 65 59 60 60 Select Growth Equities AB High Income Products AUM Products AUM 50 50 USD Billions USD Billions 40 40 30 30 32 Cumulative Net 20 16 Flows Sin
Slide 5: Resulting in Sustained, and Accelerating, Organic Growth
Sustained Growth …Resulting in Sustained, and Accelerating, Organic Growth AUM Compound Annual Growth: 5.7% 2015 – 1H2020 Active Equity accelerating from 1.2% to 4.0% in 3-year period Active Net Inflows Average Annualized Growth: 2015–1H 2020 (Percent) Average Annualized Growth: 2017–1H 2020 (Percen
Slide 6: We Have a Growing Alternatives Platform
Expanding Alternatives We Have a Growing Alternatives Platform… Representing 7% of Annual Fee Base 11% Compound Annual Growth Rate 2015–2019 20 200 Annualized Fee Base 16 160 Y/Y AUM Growth Rate Annualized Fee Base (USD Millions)* 12 120 (Percent) Percent AUM 8 80 Growth (Left Scale) 4 40 0 0 2016 2
Slide 7: Accelerated by a Strategic Partner in Equitable Holdings (EQH)
Committed Capital (EQH) …Accelerated by a Strategic Partner in Equitable Holdings (EQH)… Founded in 1859, Equitable (Rated A+/A2 by S&P/Moody’s) provides advice, protection and retirement strategies with more than 5,000 client relationships globally EQH receives value through its 65% economic in
Slide 8: A Continued Mix Shift to Higher Fee Active Equities and Alternatives
Strong Incremental Margins A Continued Mix Shift to Higher Fee Active Equities and Alternatives… Percent of Assets under Management Active Equities and Percent of Annualized Fee Base, Active Equities and Alternatives Alternatives 35 60 54.8 55.1 53.6 +20 b.p. +200 b.p. 50.0 +170 b.p. 30 50 25 40 20
Slide 9: Combined with Focused Execution on Cost Reduction
Strong Incremental Margins …Combined with Focused Execution on Cost Reduction… Nashville Relocation Annual Cost Savings Adjusted Comp Expense as Percent of Revenues USD Millions US$75–US$80 51 Million 50.4 80 50 60 49 48.0 40 48 20 47 46 0 45 (20) 2015 2016 2017 2018 2019 1H:2020 2011–2014 Guidance
Slide 10: Supports Strong Incremental Margins
Strong Incremental Margins …Supports Strong Incremental Margins Average Incremental Margin AB Adjusted Operating Margin (Percent) Five Years: 2015–2019 (Percent) 30 54 28 27.6 31 26 24 24.4 Peer Group Average AB 22 (ex AB) 2015 2016 2017 2018 2019 1H:2020 Peer Average includes: Affiliated Managers G
Slide 11: Partnership Structure Hedges Us Against Risk of a Higher Tax World
Tax Advantaged Structure Partnership Structure Hedges US Against Risk of a Higher Tax World 40 30 ?? 21.0 Percent 20 10 9.0 0 2015 2016 2017 2018 2019 2020* 2021 and Beyond* AB Holding Effective Tax Rate US Federal Corporate Tax Rate Note: AB Holding is a grandfathered publicly-traded partnership “P
Slide 12: High Distribution Yield in a Low-Rate Environment
High Distribution Yield High Distribution Yield in a Low-Rate Environment AB Pays out 100% of Adjusted Earnings Distribution and Yield 2015–2019 Yield vs. Peer Group June 30, 2020 Percent 3.0 12 9.8 $2.68 $2.53 2.5 9 $2.30 US Dollars Percent 2.0 $1.86 $1.92 6 4.8 1.5 3 1.9 0.7 1.0 0 2015 2016 2017 2
Slide 13: Total Shareholder Return
High Distribution Yield Total Shareholder Return AB TSR has exceeded both S&P 500 and Peers Distributions represent >90% of TSR since 2015 Total Shareholder Return CAGR (2015–June 30, 2020) 80 70% 68% 60 40 Percent 20 0 (20) (23%) (40) (60) AB Peer S&P Dividend Return Price Return Assumes distri
Slide 14: Our Brand Is a Competitive Advantage
Brand Strength Our Brand Is a Competitive Advantage Bernstein Research AllianceBernstein Quality Standard of the Industry AB Awarded Greenwich Associates’ Quality Leader 87% of Senior Analysts ranked by Institutional Investor* American Income—Best Fund over 3, 5, 10 years (Lipper); Best in Class (Be
Slide 15: Differentiated Private Wealth Management
Brand Strength Differentiated Private Wealth Management We Aim to Provide the Best Service to Our Loyal and High Value, High Net Worth Customers… Average client relationship tenure of 12 years Low team turnover Mix shift to ultra high-net worth customers Integrated architecture driven by wea
Slide 16: Key Accomplishments Over the Last Three Years
Track Record of Accomplishment Key Accomplishments Over the Last Three Years… Distribution build-out is paying off Significant investment in U.S. and European retail and initial investment in China Organic growth through consistent, strong investment performance Strong Equity and Fixed Income pe
Slide 17: Inform Our Strategy Over the Next Five Years
Focused Growth Strategy …Inform Our Strategy Over the Next Five Years Growth: Leadership in active traditional management Continued discipline of idiosyncratic alpha in equities, and systematic returns in Fixed Income Targeted growth of select gaps in product offering Known leader in Private Alt
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