Bernstein International Strategic Equities Portfolio - SCB · NASDAQ:STESX
Bernstein International Strategic Equities Portfolio - SCB — Bernstein — Investor Presentation (2020)
76 slides from Bernstein International Strategic Equities Portfolio - SCB's investor presentation, 2020
Slide 1: Do the Right Thing: Managing Trusts Effectively for Beneficiaries
Do the Right Thing Managing Trusts Effectively for Beneficiaries MAKING MONEY MEANINGFUL® This presentation is provided by Bernstein. This presentation booklet has been provided to you for use in a private and confidential meeting to discuss a potential or existing investment- advisory relationship.
Slide 2: Today's Major Challenges for Fiduciaries
Today’s Major Challenges for Fiduciaries o Economic uncertainty o Global yields are low, limiting future income o Future return projections lower than the past o Tax uncertainty: temporary income tax and estate tax rules through 2025 o People are living longer, requiring trusts to last longer Do the
Slide 3: Overview of Trustee Duties Relating to Investment
Overview of Trustee Duties Relating to Investment Prudent Investor Rule Investment Policy Treas. Reg. State Statute § 1.643(b)-1 Distribution Policy Trustee Taxation Policy o Duty to diversify, unless imprudent to do so o Duty to treat beneficiaries impartially o Power to adjust between principal an
Slide 4: S&P Concentration: Highest since June 2000
S&P 500 Concentration: Highest since June 2000 Weightings of Top 10 S&P Holdings 1985–2020 30 28 26 24 Weighting (Percent) 22 20 18 16 14 12 10 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Source: “The S&P 500 Grows Ever More Concentrate
Slide 5: US Growth: Largest Stocks and Top Performers Have Shifted over Time
US Growth: Largest Stocks and Top Performers Have Shifted over Time Five Largest Companies in Russell 1000 Growth Index 40 June 2020 Current Top Five Weight 36.9% Microsoft 10.4% 35 Apple 10.2% May 2001 Amazon 8.0% 29.1% Alphabet Inc. 4.5% 30 Percentage Weight of Index (Percent) Facebook 3.7% 25 May
Slide 6: How Bernstein Can Help
How Bernstein Can Help Allow trustees and beneficiaries to pre-experience the impact of investment, distribution, and tax policies on the ability to meet fiduciary and beneficiary goals Review asset allocation and distribution policy, and revisit as needs, markets, and laws change Provide fiduciarie
Slide 7: Combining Quantitative Modeling with Fiduciary Planning
7 Combining Quantitative Modeling with Fiduciary Planning Personalized Bernstein Wealth Probability Investor Profile Scenarios Forecasting Model Distribution 5% Financial Goals 10% Assets 10,000 Simulated Income Requirements Asset Allocation Observations Based on Bernstein’s Proprietary 50% Risk Tol
Slide 8: Objective—Meet the Challenges of Today's Environment
Objective—Meet the Challenges of Today’s Environment o How Can You Maximize Income in a Low-Yield Market? o What Investment Allocations Can Safely Support Lifetime Spending from a Trust? o How to Balance the Current and Remainder Beneficiaries—A QTIP Case Study o How Can You Reduce Income Taxes in a
Slide 9: How Can You Maximize Income in a Low Yield Market?
How Can You Maximize Income in a Low Yield Market?
Slide 10: Is "Income" a Reliable Standard for Defining Trust Distributions?
Is “Income” a Reliable Standard for Defining Trust Distributions? Income per USD 1 Million* 60% Stocks/40% Bonds $79,800 $54,760 $27,834 $24,004 $18,340 1980 1990 2000 2010 2020 *Stocks are represented by the S&P 500 and bonds by US 10-year treasuries. Income is calculated using the dividend yield o
Slide 11: Projected Income Has Declined across Allocations…
Projected Income Has Declined across Allocations… USD 10.0 Million Trust Pretax Income Year One $245,600 $236,300 Last 10 Years* $227,000 $217,600 $127,000 $101,000 $74,000 $48,000 Current Capital Market Conditions** 0/100 20/80 40/60 60/40 Stock %/Bond % *Income over last 10 years computed using th
Slide 12: …And Projected Returns across Allocations Have Also Declined
…And Projected Returns across Allocations Have Also Declined Projected Annual Returns: Next 10 Years (Typical Markets, Pretax)* 7.3% 5.7% 3.1% 4.1% 2.5% 2.4% 2.0% 4.2% Last 10 Years* 1.6% 3.2% Current 2.1% Capital Market 0.8% Conditions** 0/100 20/80 40/60 60/40 Stock % / Bond % Current analysis and
Slide 13: The Full Toolkit: Income
The Full Toolkit: Income Traditional Potential Income Solutions International Stocks Stocks Low Volatility/High Dividend Stock Portfolio + High-Yield Bonds + Alternative Assets with High Yields (Municipal and Global) Bonds Real Assets Benefits o Increases projected yields and total return o Strategi
Slide 14: Coronavirus Drawdown and Rebound: Income Assets Still Lag
Coronavirus Drawdown and Rebound: Income Assets Still Lag Percent 46.5 44.3 Income 38.2 38.1 assets 33.1 29.6 25.7 19.5 18.3 12.3 1.4 1.1 (9.7) (20.2) (18.7) (30.7) (30.2) (28.9) (34.0) (32.7) (42.2) (53.4) Energy Global Global Global Common Global High Global Global EM USD Global Global (ETF) Growt
Slide 15: Research Based Allocation Weightings Yield Positive Trade-Offs
Research Based Allocation Weightings Yield Positive Trade-Offs 60% Stocks/40% Bonds Investment Risk Median Pretax Yield Projections Peak-to-Trough Loss of 20% Allocation 10-Year Horizon 10-Year Horizon US Stocks and 39% 1.8% Municipal Bonds Global Enhanced 3.1% 18% Income* Global Enhanced Income 13%
Slide 16: Objective—Meet the Challenges of Today's Environment
Objective—Meet the Challenges of Today’s Environment o How Can You Maximize Income in a Low-Yield Market? o What Investment Allocations Can Safely Support Lifetime Spending from a Trust? o How to Balance the Current and Remainder Beneficiaries—A QTIP Case Study o How Can You Reduce Income Taxes in a
Slide 17: What Investment Allocations Can Safely Support Lifetime Spending from a Trust?
What Investment Allocations Can Safely Support Lifetime Spending from a Trust?
Slide 18: Support Trust: Grantor's Intent Is Providing for Current Beneficiary
Support Trust: Grantor’s Intent Is Providing for Current Beneficiary o $5 Million Trust Goals: o Current Beneficiary: o Provide adequate distributions to current 70 years of age beneficiary to support lifestyle – Expected time horizon of 20 years o Lifetime sustainability of distributions – No subst
Slide 19: Some Allocations May Offer More Return with Less Risk
Some Allocations May Offer More Return with Less Risk Projected Return and Risk: Next 20 Years Projected Growth Rate* Probability of Peak-to-Trough Decline of 10%** Probability 5% 10% 46% 46% 50% 90% 95% 5.3% 31% 4.5% 3.5% 3.2% 2.7% 1.7% 1.3% 1.5% 0.5% 100% Bonds 15% Stocks/ 25% Stocks/ 100% Bonds 1
Slide 20: Projecting the Long-Term Impact of Allocation Decisions Is Critical
Projecting the Long-Term Impact of Allocation Decisions Is Critical Projected Future Trust Values, Net of Distributions and Taxes Initial Assets $5.0 Million, Trust Distributes $215,000 annually after-tax, inflation-adjusted Probability 5% 10% USD Millions, Nominal 50% 90% 95% $4.0 $3.2 $2.4 $2.2 $1
Slide 21: Objective—Meet the Challenges of Today's Environment
Objective—Meet the Challenges of Today’s Environment o How Can You Maximize Income in a Low-Yield Market? o What Investment Allocations Can Safely Support Lifetime Spending from a Trust? o How to Balance the Current and Remainder Beneficiaries—A QTIP Case Study o How Can You Reduce Income Taxes in a
Slide 22: How to Balance the Current and Remainder Beneficiaries—A QTIP Case Study
How to Balance the Current and Remainder Beneficiaries —A QTIP Case Study
Slide 23: Janet and Henry—A QTIP Case Study
Janet and Henry—A QTIP Case Study o Janet, age 60, and Henry married 20 years ago— second marriages for both. Henry passed away last year. Henry had two daughters, Jenna and Natalie, from his first marriage. Janet has a son, Alex, from her first marriage. o Henry left Janet with a $10 million QTIP m
Slide 24: Key to Financial Success: Answering the Key Questions
Key to Financial Success: Answering the Key Questions Janet $10 mil. Trust Investment Policy? $2.5 mil. Personal Distribution Policy? Annual Distributions Additional Amounts to Meet Spending Needs $310,000 Annual Spending Remainder to Henry’s Daughters Janet’s Remaining Jenna and Natalie Estate to h
Slide 25: Defining Success Requires Balancing Risk and Return Trade-Offs
Defining Success Requires Balancing Risk and Return Trade-Offs for Multiple Beneficiaries with Different Goals Range of Annual Returns* Next 30 Years 26.9% Probability 21.1% 5% 15.7% 10% 11.4% 50% 3.5% 4.3% 5.1% 5.9% 90% 95% (3.3)% (5.1)% (7.7)% (10.8)% 20% Stocks/80% Bonds 40% Stocks/60% Bonds 60%
Slide 26: 60/40 Allocation Was Agreeable, but Henry's Daughters Bear the Portfolio Risk
60/40 Allocation Was Agreeable, but Due to Inflation-Adjusted Distribution Henry’s Daughters Bear the Portfolio Risk... Income Distribution to Janet Is Greater of Income or $310,000* Probability Inflation-Adjusted Wealth** Share of Total Trust Wealth** 5% After-Tax, Year 30 (USD Millions) Median Cas
Slide 27: …And the Risk of Time
…And the Risk of Time Remainder Share of Total Wealth* Annual Distribution of USD 310,000, 60/40 Portfolio 100 80 60 Percent 40 20 14% 7% % Trust Depleted 0 65 70 75 80 85 90 95 Current beneficiary has a 53% Age of Current Beneficiary chance of living to age 90** *Inflation-adjusted, after-tax. Dist
Slide 28: A Unitrust Distribution Eliminates the Risk of Depletion
A Unitrust Distribution Eliminates the Risk of Depletion and Stabilizes Sharing the Wealth Remainder Share of Total Wealth* Annual Distribution of 3.1%, 60/40 Portfolio 100 80 60 Percent 40 20 0 65 70 75 80 85 90 95 Age of Current Beneficiary Unitrust payment stabilizes the children’s share of wealt
Slide 29: Unitrust: Better Sharing of Wealth...
Unitrust: Better Sharing of Wealth... 3.1% Unitrust Distribution* 60% Global Equities / 40% Municipal Bonds Probability Inflation-Adjusted Wealth* Share of Total Wealth** 5% After-Tax, Year 30 (USD Millions) Median Case, Year 30 10% 50% 90% 95% Remainder $15.5 Beneficiary 49% $11.7 51% $8.1 $7.9 Cur
Slide 30: How Does Volatility Impact a Unitrust Payout?
How Does Volatility Impact a Unitrust Payout? A Historical Illustration of a $10MM Trust 3.1% Unitrust* 60% Stocks/40% Bonds Trust Value—Beginning of Year (USD Million) $11.8 $12.7 $10.0 $9.6 $10.3 $8.6 $9.4 $7.5 Annual Trust Payout $365,756 $320,619 3.1% Unitrust Payout $310,000 25% $291,656 $296,2
Slide 31: Stabilize the Distribution with Smoothing, Floors, and Ceilings
Stabilize the Distribution with Smoothing, Floors, and Ceilings Distribution Distribution 60/40, 3.1% Unitrust 60/40, 3.1% Unitrust with 3-Year Smoothing, 85% Floor and 115% Ceiling* Probability of 20% Peak-to-Trough Decline** 92% 32% 1 10 20 30 1 10 20 30 Years Years *Assumes three-year smoothing,
Slide 32: Unitrust with a Floor: Better Stability of Distributions
Unitrust with a Floor: Better Stability of Distributions 3.1% Unitrust with 85% Floor and 115% Ceiling Inflation-Adjusted Probability Inflation-Adjusted Wealth* Share of Total Wealth** 5% After-Tax, Year 30 (USD Millions) Median Case, Year 30 10% 50% 90% Greater stability for 95% current beneficiary
Slide 33: Plan to Succeed: Janet Meets Her Lifetime Spending Needs
Plan to Succeed: Janet Meets Her Lifetime Spending Needs and Henry’s Daughters Share the Wealth of their Father Janet $10 mil. Trust Investment Policy: $2.5 mil. Personal 60% Stocks/40% Bonds Annual Distributions Additional Amounts to Investment Policy: Distribution Policy: Meet Spending Needs 40% S
Slide 34: Objective—Meet the Challenges of Today's Environment
Objective—Meet the Challenges of Today’s Environment o How Can You Maximize Income in a Low-Yield Market? o What Investment Allocations Can Safely Support Lifetime Spending from a Trust? o How to Balance the Current and Remainder Beneficiaries—A QTIP Case Study o How Can You Reduce Income Taxes in a
Slide 35: Should You Distribute from the Trust?
Should You Distribute from the Trust? Balancing Income Tax Management with Estate Tax Management
Slide 36: Differences between Individual and Trust Income Tax Rates
Differences between Individual and Trust Income Tax Rates Tax Adjusted Gross Value of Bracket Run—Long-Term Capital Gains* Income Type Rate Income Threshold (USD Thousands) Single Filer Trust $120 $105 Short-Term Gains 37.0% $518,400 $12,950 $100 and Ordinary Income Max Tax Long-Term Gains and Savin
Slide 37: Large Tax Difference between Individuals and Trusts
Large Tax Difference between Individuals and Trusts Income Type Max Tax Rate Adjusted Gross Income Threshold Single Filer Trust Short-Term Gains and Ordinary Income 37.0% $518,400 $12,950 Long-Term Gains and Qualified Dividends 20.0% $441,450 $13,150 Medicare Surtax on Net Investment Income 3.8% $20
Slide 38: Spend from a Trust Outside of the Estate?
Spend from a Trust Outside of the Estate? o Beatrice, age 70, has a credit shelter trust from her late husband o Personal portfolio: $3 million | Trust portfolio: $5 million o Currently, no distributions from the trust o Allocation—both portfolios are invested: – 40% global stocks/60% intermediate-t
Slide 39: Inflation and Spending: Current Estate Exclusion Allows Room to Spare
Inflation and Spending: Current Estate Exclusion Allows Room to Spare Estate Relative to Applicable Exclusion* Median Values, Nominal (USD Millions) $15 Applicable Exclusion Amount $11.6 $11.9 $10 $7.5 $6.8 $6.2 $5 Additional Tax-Free Estate Capacity $3.0 Estate value $2.8 $2.6 $2.4 $2.0 $- 2020 202
Slide 40: Distributing Trust Income Closes the Gap and Reduces Taxes
Distributing Trust Income Closes the Gap and Reduces Taxes Estate Relative to Applicable Exclusion* Median Values, Nominal (USD Millions) $15 Applicable Exclusion Amount $11.6 $11.9 $10 $7.5 $6.8 $6.2 $5.3 $5 Estate with Trust Income Distributions $4.4 $3.1 $3.3 $3.7 Additional Basis Step-Up Capacit
Slide 41: Asset Location, Location, Location
Asset Location, Location, Location Range of Remainder Values—Year 20 Portfolio Values—No Trust Distributions* Portfolio Values—With Trust Income Distributions* Nominal (USD Millions) Nominal (USD Millions) Probability 5% 10% $16.4 50% 90% 95% $10.7 $9.6 $9.9 $6.7 $6.2 $5.3 $4.5 $4.0 $3.0 $2.0 $0.8 E
Slide 42: Distributing Income Saves Income Taxes
Distributing Income Saves Income Taxes Summary Year 20—Median Personal and Trust* (USD Millions—Nominal) Personal Assets Trust Assets $11.6 $12.0 $6.7 $9.6 $5.3 $2.0 No Distributions from Trust Distribute Income from Trust More wealth during life due to income tax savings relative to trust tax rates
Slide 43: Does Your Grantor Have Tax Fatigue?
Does Your Grantor Have Tax Fatigue? The Impact of Turning Off Grantor Powers and a Potential Solution
Slide 44: Managing Jack's "Grantor Tax Fatigue"
Managing Jack’s “Grantor Tax Fatigue” Case Assumptions o Jack’s current personal portfolio: $20 million, invested 40% global stocks/60% bonds o Spends $600,000 annually from this portfolio* o He gave $5 million to an irrevocable grantor trust six years ago for the future benefit of his daughters, Ke
Slide 45: Managing Jack's "Grantor Tax Fatigue": Possible Solutions
Managing Jack’s “Grantor Tax Fatigue” Case Assumptions Possible Solutions: o Request reimbursement from the trustee each year (per Revenue Ruling 2004-64) o Revoke or otherwise terminate retained grantor power(s) o Private Placement Life Insurance (PPLI) AB is not a legal, tax, estate, or insurance
Slide 46: Diagnosing Private Placement Life Insurance
Diagnosing Private Placement Life Insurance o Private Placement Life Insurance is a life insurance policy without formal securities law registration. o Purchase of a policy is limited to qualified purchasers and accredited investors. o Product loads and periodic charges are considerably lower than m
Slide 47: Converting to Nongrantor Trust Is Costly for Beneficiaries
Converting to Nongrantor Trust Is Costly for Beneficiaries After-Tax Range of Trust Assets—Year 20* Nominal (USD Millions) Probability 5% 10% $54.7 50% 90% 95% $39.8 $23.2 $18.3 $10.8 $8.8 Grantor Nongrantor Trust Trust For illustrative purposes only. Data do not represent past performance. Actual r
Slide 48: Tax Deferral Can Help Narrow the Gap…
Tax Deferral Can Help Narrow the Gap… After-Tax Range of Trust Assets—Year 20* Nominal (USD Millions) Probability 5% 10% $54.7 50% 90% $48.9 95% $39.8 $23.2 $18.3 $20.3 $10.8 $9.3 $8.8 Grantor Nongrantor PPLI Trust Trust For illustrative purposes only. Data do not represent past performance. Actual
Slide 49: …And Tax-Free Death Benefit Provides Additional Value
…And Tax-Free Death Benefit Provides Additional Value After-Tax Range of Trust Assets—Year 20* Nominal (USD Millions) Probability 5% 10% $54.7 50% $51.3 90% 95% $39.8 $23.2 $21.3 $18.3 $10.8 $9.8 $8.8 Grantor Nongrantor PPLI with Trust Trust Death Benefit For illustrative purposes only. Data do not
Slide 50: Grantor Trust Reduces Grantor's Taxable Estate by 24%
Grantor Trust Reduces Grantor’s Taxable Estate by 24% Summary Year 20—Median Personal and Trust (USD Millions—Nominal) After Estate Tax Personal Children's Trust $39.7 $37.2 $36.7 $18.3 $21.3 $23.2 $18.4 $18.4 $14.0 Grantor Trust Nongrantor Trust PPLI with Death Benefit $4.4 million smaller taxable
Slide 51: Total After-Tax Wealth to the Family Increases with PPLI
Total After-Tax Wealth to the Family Increases with PPLI After Estate Tax, Summary Year 20—Median (USD Millions—Nominal) After Estate Tax Personal Children's Trust Estate Tax $32.6 $33.4 $30.3 $23.2 $18.3 $21.3 $12.0 $12.0 $9.4 $(4.6) $(6.4) $(6.4) Grantor Trust Nongrantor Trust PPLI with Death Bene
Slide 52: How to Add Alternatives Tax Efficiently?
How to Add Alternatives Tax Efficiently? Insulating a Trust from Tax-Inefficient Assets
Slide 53: Adding Alternatives Tax Efficiently—A Case Study
Adding Alternatives Tax Efficiently—A Case Study o Carol is 65 years old, and her husband Mike passed away in 2018. o Mike’s testamentary will established a Credit Shelter Trust for the benefit of Carol and ultimately their children. The trust is currently valued at $10 million, and it is all surplu
Slide 54: Diagnosing Private Placement Life Insurance
Diagnosing Private Placement Life Insurance o Private Placement Life Insurance is a life insurance policy without formal securities law registration. o Purchase of a policy is limited to qualified purchasers and accredited investors. o Product loads and periodic charges are considerably lower than m
Slide 55: Alternatives Can Provide Attractive Pretax Returns, but Many Are Tax Inefficient
Alternatives Can Provide Attractive Pretax Returns, but Many Are Tax Inefficient… Projected Median 10-Year Annualized Return (Average Manager)* Key Question: Income Tax o Is the tax hurdle too high? After-Tax Return o Is the increased return potential worth the illiquidity? 8.2% 5.8% (3.3)% (1.4)% 4
Slide 56: Investing in Alternatives through PPLI Can Defer the Tax Drag
…However, Investing in Alternatives through a Private Placement Life Insurance Policy Can Defer (or Eliminate) the Tax Drag Projected Median 10-Year Annualized Return (Average Manager)* Key Question: Policy Expenses o Is the enhanced return potential worth the Income Tax – added complexity; and Afte
Slide 57: Reduce Volatility and Improve Outcomes
Reduce Volatility and Improve Outcomes Investment Risk Median Projections Peak-to-Trough Loss of 20% Allocation 10-Year Horizon 10-Year Horizon Global 74% Equities* $15.8 (taxable) Global Equities & 15% Alternatives** $16.1 (taxable) +18% Global Equities & 15% Alternatives** $18.7 in PPLI These proj
Slide 58: What Is the Value of Getting a Step-Up in Basis?
What Is the Value of Getting a Step-Up in Basis?
Slide 59: Benefit of "Step-Up" Highly Dependent on Turnover Rate
Benefit of “Step-Up” Highly Dependent on Turnover Rate Tax Savings Resulting from “Step-Up” Per $1 million Growth of $1 million (Net of Tax)—Year 20 Compound Annual Growth Rate 6% Compound Annual Growth Rate 6% Annual Turnover Rate 0% vs. 30% Annual Turnover Rate (USD Thousands, Nominal) (USD Thousa
Slide 60: Ways to Maximize Step-Up in Basis
Ways to Maximize Step-Up in Basis o Retain highly appreciated assets and reduce capital gains realization in estate late in life o Swap appreciated assets out of grantor trust prior to death o Maximize assets inside estate up to the applicable exclusion amount o Utilize Portability in Estate Plan—Ad
Slide 61: Conclusions
Conclusions
Slide 62: Objective—Meet the Challenges of Today's Environment
Objective—Meet the Challenges of Today’s Environment How Can You Maximize What Investment Allocations How to Balance the Current Income in a Low-Yield Can Safely Support Lifetime and Remainder Beneficiaries Market? Spending from a Trust? Real assets/REITs; High dividend Run the forecast! Portfolios
Slide 63: How Bernstein Can Help
How Bernstein Can Help Allow trustees and beneficiaries to pre-experience the impact of investment, distribution, and tax policies on the ability to meet fiduciary and beneficiary goals Review asset allocation and distribution policy, and revisit as needs, markets, and laws change Provide fiduciarie
Slide 64: Appendix
Appendix
Slide 65: Alternatives Impact Analysis
Alternatives Impact Analysis The materials and conclusions expressed herein are our present opinions only, reflecting prevailing market conditions and our judgments as of the date these materials were prepared, and are subject to change without notice. They involve a number of assumptions that may n
Slide 66: Alternatives Impact Analysis: Allocation Summary—60/40 with Enhanced Income
Alternatives Impact Analysis Allocation Summary—60/40 with Enhanced Income Alternatives Report Allocation Allocation with Alts Risk-Mitigating 40.0% 36.0% Ind Mgd Intermediate Duration Div Muni Bonds 40.0% 36.0% Diversifying 21.2% 29.1% Tax-Managed All Market Income Portfolio – Adv Cl 10.2% 9.2% Hig
Slide 67: Alternatives Impact Analysis: Alternatives Summary—60/40 with Enhanced Income
Alternatives Impact Analysis Alternatives Summary—60/40 with Enhanced Income Projected Outcomes Based on Asset Allocation Models (10-year period) Long-Term Average Median Return Volatility Prob. of 20% Loss Tail Risk Income Allocation 3.6% 9.4% 18% (20)% 3.2% Allocation with Alts 4.0% 8.7% 13% (19)%
Slide 68: Alternatives Impact Analysis: Allocation Summary—Global Equity with Alternatives
Alternatives Impact Analysis Allocation Summary—Global Equity with Alternatives Alternatives Report Allocation Allocation with Alts Risk-Mitigating 0.0% 0.0% Ind Mgd Intermediate Duration Div Muni Bonds 0.0% 0.0% Diversifying 0.0% 75.0% Arya Partners Fund (Cayman) – Class 8 0.0% 25.0% Securitized As
Slide 69: Alternatives Impact Analysis: Alternatives Summary—Global Equity with Alternatives
Alternatives Impact Analysis Alternatives Summary—Global Equity with Alternatives Projected Outcomes based on Asset Allocation Models (10-year period) Long-Term Average Median Return Volatility Prob. of 20% Loss Tail Risk Income Allocation 5.4% 17.5% 63% (35)% 2.3% Allocation with Alts 7.5% 7.9% 15%
Slide 70: Notes on Alternatives Impact Analysis
Notes on Alternatives Impact Analysis 1. Purpose and Description of Alternatives Impact Analysis Tool AB’s Alternatives Impact Analysis Tool (AIA) is designed to assist investors in making their long-term investments decisions as to their allocation of investments among categories of financial asset
Slide 71: Notes on Alternatives Impact Analysis
Notes on Alternatives Impact Analysis 2. Allocations to Alternative Investments Any recommendations regarding asset allocations that include Bernstein alternative investments are based on a number of important criteria, including but not limited to consideration of the client’s stated financial circ
Slide 72: Notes on Alternatives Impact Analysis
Notes on Alternatives Impact Analysis 3. Rebalancing The AIA model assumes projected risk and returns are calculated assuming annual rebalancing to target allocations. The model ignores the rebalancing implications of liquidity constraints or tax consequences. Actual portfolios would be rebalanced c
Slide 73: Notes on Bernstein Wealth Forecasting System
Notes on Bernstein Wealth Forecasting System 1. Purpose and Description of Wealth Forecasting Analysis Bernstein’s Wealth Forecasting Analysis is designed to assist investors in making their long-term investment decisions as to their allocation of investments among categories of financial assets. Ou
Slide 74: Notes on Bernstein Wealth Forecasting System
Notes on Bernstein Wealth Forecasting System 4. Expenses and Spending Plans (Withdrawals) All results are generally shown after applicable taxes and after anticipated withdrawals and/or additions, unless otherwise noted. Liquidations may result in realized gains or losses, which will have capital-ga
Slide 75: Notes on Bernstein Wealth Forecasting System
Notes on Bernstein Wealth Forecasting System 6. Volatility Volatility is a measure of dispersion of expected returns around the average. The greater the volatility, the more likely it is that returns in any one period will be substantially above or below the expected result. The volatility for each
Slide 76: AllianceBernstein service mark and copyright notice
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P. © 2020 AllianceBernstein L.P. BPWM-141895-2020-09-22