Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Bank of America Merrill Lynch Banking and Financial Services Conference 2011
26 slides from Alliancebernstein Holding L.p's conference presentation, Nov 16, 2011
Slide 1: AllianceBernstein: Strategy, Vision and Potential
November 15, 2011 AllianceBernstein: Strategy, Vision and Potential Bank of America Merrill Lynch Banking and Financial Services Conference Peter S. Kraus Chairman & Chief Executive Officer ALLIANCEBERNSTEIN
Slide 2: 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 3: AllianceBernstein: Diversified and Global
AllianceBernstein: Diversified and Global Assets Under Management: $424 Billion* By Strategy By Channel By Client Domicile 3% Asset - ‘ A Alternatives Private Allocation Client Non-US Equities ex-Large Cap** Retail Large " US Cap Fixed ga Equities Income Institutions *Preliminary as of October 31, 2
Slide 4: On the Ground, Around the World
On the Ground, Around the World ‘London Minneapolis. | * Montréal © Chicags * New Yor = Madrid sees Panel Seoul® ¢ Tokyo Taipei Rint Hong Kong + + Singapore @ S80 Paulo = Cape Town P sien Melbourne ¢ Investment Management and Research Office = Dedicated Research ‘As of September 30, 2011 “Includes F
Slide 5: Sanford C. Bernstein — Industry-Leading Sell-Side Research
Sanford C. Bernstein — Industry-Leading Sell-Side Researc! Growing Global Footprint = 400+ Employees in 7 offices in the US, Europe and Asia Stockhaim (> tendon” oo = 65 Fundamental & Quantitative Senior Research Analysts Los Angeles New York at Worldwide "Hong Kong Nakganore = Growth driven by expa
Slide 6: Private Client — Stability and Strength
Private Client — Stability nd Strength Stable Private Client Relationships Productive Advisors 3B Private Client Revenue per Advisor (SM) 90 40,000 3 75 30,000 60 2 45 20,000 aS $25 30 1 2 10,000 18 ) 0 o 2008 2009 2010 sant 2008 2009 2010 2011" mmm Private Client AUM (Left) —¢—Private Client Relati
Slide 7: Evolution of Our Business
Evolution of Our Business Dec-08: $221 Billion 49% of Firm Total Fixed Equities ex- Income Large Cap" Asset Allocation [Large Cap $5 Alternatives Equities: $228 Dec-08: $703 Million 36% of Firm Total Fixed Equities ex- income Large Cap* Asset » Allocation s 32 Alternatives AUM (Sin Billions) AFB (Si
Slide 8: Positioning AllianceBernstein for Long Term Success
Positioning AllianceBernstein for Long Term Success Firmwide Initiatives: = Improve investment performance and restore client confidence = Diversify our business across channels, investment services and geographies = Develop innovative new products and services to meet clients’ evolving needs = Achi
Slide 9: Top Performing Services in Large Asset Categories
Top Performing Services in Large Asset Categories Quartile Ranks Relative Returns 1Yr 3Yr 5Yr 1Yr_ 3Yr 5Yr Relative Return Benchmark Fixed Income Global Plus Fixed Income 1 2 2 0.7 19 0.3 Barclays Capital Global Aggregate US Core Fixed Income 2 1 3 00 20 03 Barclays Capital US Aggregate Emerging Mar
Slide 10: Equities: A Market That Rewards Short Duration
Equities: A Market That Rewards Short Duration Year-to-Date Relative Returns Short i Long igh Dividends / Current Earnings / ; Momentum / Earnings Revision / Lower Beta Current Duration Five-Year Cash Flow 7.1% 7.0% 65% 2.6% y Large Global Small US 1.2% aK Cap Research Cap Strategic Int'l. Global Gr
Slide 11: Diversifying Our Business: Growth in Fixed Income
Diversifying Our Business: Growth in Fixed Income Fixed Income % Firmwide AUM Fixed Income AUM Growth 4Q08 - 3Q11 4Q08 3Q11 - 30% Fixed Income % Firmwide AFB 4Q08 3Q11 18% : Total Fixed Income US Fixed Income _International Fixed Income mFixed Income mRest of AUM
Slide 12: Diversifying Our Business: Revived Retail
Diversifying Our Business: Revived Retail New Product Launches ’08 - 3Q11 Retail Sales YTD 2011 by Geography 09- 3Q 1 23 v Products Launched $11 Billion in New 19 10 1 Asia (ex Japan) US Funds + SMA US Subadvisory 2008 2009 2010 2011 YTD Japan mEMEA Latin America
Slide 13: Innovative New Products and Services
Innovative New Products and Services Assets Under Management As of September 30, 2011 ($ Billions) 34 25" 13 11 Customized Dynamic Asset Emerging Markets Alternatives Retirement Allocation Strategies (1) Includes retail funds and Private Client total assets with DAA overlay
Slide 14: Growth in Defined Contribution: Customized Retirement Strategies
Growth in Defined Co bution: Customized Retirement Strategies Growth in CRS Assets End 3Q Institutional Pipeline $ Billions Sizing the Opp. $9 % ($3 Trillion) $7 $4 $1 $0 $11 CRS 2006 2007 2008 2009 2010 ‘Source: AlanceBerstein. Defined Contribution business and target date funds size, growth and 3Q
Slide 15: DAA: Smoothing the Ride for Private Clients
DAA: Smoothing the Ride for Private Clients With DAA We Continuously Adapt to Rapidly Changing Markets Z wo, fwohrea rete! Tapanose Earthquake CuroArea Grsio! 190 © cui redced cast woth Rikromncolcasce Under one prt uo hedge 2 10 110 | zo 100 § 5 x 8 8 § % 2 2 mi Adjustments to 60/40 Weight Taxable
Slide 16: Managing Volatility and Risk for Different Clients
Managing Volatility and Risk for Different Clients DAA in Annuity Products Diverse Ways to Manage Risk in Client Portfolios $M ™ New risk management services for insurers: 1,500 September = Expected Tail Loss Parity (ETL) - A quant-only AXA strategy that is more formulaic than DAA, with fewer inputs
Slide 17: Emerging Markets Multi-Asset Strategy
Emerging Markets Multi-Asset Strategy Emerging Markets Value Cumulative Emerging-Market Equity and Debt Returns** Inception: Dec 95 et Capture Equity Upside Strategy: 9.4%" Debt Dampens Downside . Benchmark:# — 6.7%* Premium: 2.8%" its Equity Emerging Market Debt 3 Inception: Jun 94 Debt 200 Strateg
Slide 18: A Diverse Alternatives Platform
A Diverse Alternatives Platform Total AUM: $13 Billion Fund-of-Hedge Funds Diversified pe ata :
Slide 19: Improve Financial Performance
Improve Financial Performance Reducing Real Estate Footprint Investment Operations Outsourcing 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11E Utilized Space ll Flex Space (Occupied) ® Sublet, Intended to Sublet, Surrender and Transitional ‘Space (Unoccupied) = Outsou
Slide 20: Positioning AB for Long Term Success — 3Q Accomplishments
Positioning AB for Long Term Success — 3Q Accomplishments Firmwide Initiative Evidence of Progress Improve investment performance and restore client confidence Diversify our business across" channels, investment services and geographies ® Ongoing outperformance in Global Fixed Income, US Small and S
Slide 21: AllianceBernstein.com
20 AllianceBernstein.com
Slide 22: YTD 2011 vs. YTD 2010
YTD 2011 vs. YTD 2010 Revenues Expenses $M ‘SM $2,125 $2,171 $1,793 $1,866 yr: 11 YTD: 10 yqo:11 yTD:10 Adjusted EPU Adjusted Margins $M 21.7% $1.20 19.8% $1.06 YTD:11 YTD: 10 y1D:11 Y1D:10
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet In US $ Millions Assets Sept 30, 2011 Dec 31, 2010 Cashrand cash equnaients s 319 ~—~SCS 650 Cash and securities, segregated 1,194 4,110 Receivables, net 1,384 1,389 Investments: Deferred compensation - related 216 299 Other 633, 458 Goodwill 2,945 2,939 Intangible assets,
Slide 24: Consolidated Income Statement
Consolidated Income Statement AllianceBernstein L.P. (The Operating Partnership) SUMMARY CONSOLIDATED STATEMENTS OF INCOME | September 30, 2011 Three Months Ended S thousands, unaudited ei Revenues: Base fees $469,517 $504,566 $497,595 Performance fees eit 3,757 5,702 Bernstein research senices 118,
Slide 25: October 31, 2011 AUM
October 31, 2011 AUM AllianceBernstein L.P. (The Operating Partnership) Assets Under Management ($ in billions) ‘At October 31, 2011 ‘At Sep 30 (preliminary) 2011 Private Institutions Retail Client Total Total Equity Value $ 53 S$ 2 § 9 § 4 § 87 Growth 15 19 15 49 45 Total Equity 68 a 34 143 132 Fix
Slide 26: ALLIANCEBERNSTEIN
7B ALLIANCEBERNSTEIN