45 slides from Alliancebernstein Holding L.p's earnings presentation, Jul 31, 2009
Slide 1: Second Quarter 2009 Review
Second Quarter 2009 Review Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P. July 30, 2009 Peter S. Kraus Chai
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
AllianceBernstein < Investment Performance < Client Segments: = Private Clients = Retail = Institutions = Bernstein Research < Expense Management
Slide 4: Relative Performance: Value Equity
Relative Performance: Value Equity International Value Global Value US Diversified Value 2Q09 Jan-Jun 2009 1 Year 3 Years 5 Years 10 Years N/A Institutional Equity Composites vs. Benchmarks Percent As of June 30, 2009 Performance is preliminary. The information in this table is provided solely for u
Slide 5: Relative Performance: Growth Equity
Relative Performance: Growth Equity Global Research Growth US Large Cap Growth International Large Cap Growth As of June 30, 2009 Performance is preliminary. The information in this table is provided solely for use in connection with this presentation, and is not directed toward existing or potentia
Slide 6: Relative Performance: Blend Strategies
Relative Performance: Blend Strategies As of June 30, 2009 Performance is preliminary. The information in this table is provided solely for use in connection with this presentation, and is not directed toward existing or potential investment advisory clients of AllianceBernstein. Investment performa
Slide 7: Relative Performance: Fixed Income
Relative Performance: Fixed Income Strategic Core Plus Corporate Bonds Global Plus 2Q09 Jan-Jun 2009 1 Year 3 Years 5 Years 10 Years Institutional Fixed Income Composites vs. Benchmarks Percent As of June 30, 2009 Performance is preliminary. The information in this table is provided solely for use i
Slide 8: AllianceBernstein: Net Flows By Distribution Channel
AllianceBernstein: Net Flows By Distribution Channel In US dollars (billions)
Slide 9: AllianceBernstein: Net Flows By Investment Service
AllianceBernstein: Net Flows By Investment Service *Includes Index, Structured and Asset Allocation services. In US dollars (billions)
Slide 10: Private Client Highlights
Private Client Highlights < Net outflows decreased 45% compared to 1Q09 primarily attributable to a continued decline in client account closings < Profound risk aversion has eased; discussions with clients and prospects reflect renewed interest in longer-term planning and diversified stock/bond port
Slide 11: Retail Highlights
Retail Highlights < In aggregate, net outflows were flat compared to1Q09 < Mutual fund performance has improved: YTD ~50% of funds outperformed Lipper peer averages < Mutual fund redemptions were down 22% compared to1Q09; redemption rates are returning to their long term averages < Mutual fund gross
Slide 12: Institutions Highlights
Institutions Highlights < Net outflows worsened compared to 1Q09 as sales of new mandates slowed and redemptions modestly accelerated < Pipeline of won but unfunded mandates ended the quarter at $3 billion versus $4 billion at the end of 1Q09 < 2Q09 relative performance of the majority of our servic
Slide 13: Bernstein Research Highlights
Bernstein Research Highlights < Revenue was flat compared to the prior year quarter; up 5% sequentially < Research and trading capabilities received recognition: = Bernstein was again ranked #1 on all key metrics of research quality in a leading independent survey of US institutional investors = Ber
Slide 14: AllianceBernstein: Second Quarter 2009 Net Income
AllianceBernstein: Second Quarter 2009 Net Income In US dollars (millions) *Operating Margin = (Operating Income - Net Income Attributable to Non-Controlling Interests)/Net Revenues Percentages are calculated using revenues and expenses rounded to the nearest thousand.
Slide 15: AllianceBernstein: Second Quarter 2009 Revenues
AllianceBernstein: Second Quarter 2009 Revenues Percentages are calculated using revenues and expenses rounded to the nearest thousand. In US dollars (millions)
Slide 16: AllianceBernstein: Second Quarter 2009 Advisory Fees
AllianceBernstein: Second Quarter 2009 Advisory Fees Percentages are calculated using AUM rounded to the nearest million and revenues to the nearest thousand.
Slide 17: AllianceBernstein: Year-over-Year Change in AUM Mix
2Q09 Earnings Call Presentation 16 AllianceBernstein.com AllianceBernstein: Year-over-Year Change in AUM Mix Global and International $248 US $199 2Q2008 Average Revenue Yield = 44.2 bps 2Q2009 Average Revenue Yield = 42.8 bps Equity $517 Fixed Income $200 Fixed Income $178 Equity $269 Global and In
Slide 18: AllianceBernstein: Headcount Trend
AllianceBernstein: Headcount Trend < Headcount down 18% from 3Q08 peak
Slide 19: AllianceBernstein: Second Quarter 2009 Operating Expenses
AllianceBernstein: Second Quarter 2009 Operating Expenses Percentages are calculated using revenues and expenses rounded to the nearest thousand. In US dollars (millions)
Slide 20: AllianceBernstein: Second Quarter 2009 Compensation & Benefits
AllianceBernstein: Second Quarter 2009 Compensation & Benefits Percentages are calculated using expenses rounded to the nearest thousand. In US dollars (millions)
Slide 21: Expense Initiatives
Expense Initiatives < 1H09 operating expenses declined 23% compared to 1H08 = Savings from prior period headcount reductions (salary and fringes- $100M annually), and other controllable expenses (~$75M annually) fully reflected in 2Q09 operating expenses = Incentive compensation (ex-M-T-M impact), e
Slide 22: Second Quarter 2009 Review
Second Quarter 2009 Review Peter S. Kraus Chairman & Chief Executive Officer
Slide 23: AllianceBernstein.co
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Slide 24: AllianceBernstein.co
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Slide 25: Relative Performance: Institutional Growth Equity
Relative Performance: Institutional Growth Equity Performance is preliminary. As of June 30, 2009 Investment performance of composites is presented after investment management fees. Periods of more than one year are annualized. The information in this table is provided solely for use in connection w
Slide 26: Relative Performance: Institutional Value Equity
Relative Performance: Institutional Value Equity Performance is preliminary. As of June 30, 2009 Investment performance of composites is presented after investment management fees. Periods of more than one year are annualized. The information in this table is provided solely for use in connection wi
Slide 27: Relative Performance: Institutional Blend Strategies
Relative Performance: Institutional Blend Strategies Performance is preliminary. As of June 30, 2009 Investment performance of composites is presented after investment management fees. Periods of more than one year are annualized. Inception date: Global Blend Strategies—June 30, 2003; International
Slide 28: Relative Performance: Institutional Fixed Income
Relative Performance: Institutional Fixed Income Performance is preliminary. As of June 30, 2009 Investment performance of composites is presented after investment management fees. Periods of more than one year are annualized. *The benchmarks listed are the current benchmarks for the investments ser
Slide 29: Absolute Performance: Private Client
Absolute Performance: Private Client Performance is preliminary. As of June 30, 2009 Investment performance of composites is presented after investment management fees. Periods of more than one year are annualized. *The Bernstein Fully Diversified Portfolio is a simulation composed of specific propo
Slide 30: Relative Performance: Retail Growth Equity
Relative Performance: Retail Growth Equity Performance is preliminary. As of June 30, 2009 *Performance figures other than 2Q 2009 positively affected by class action settlement proceeds. **Performance figures for 3-, 5- and 10-year periods positively affected by class action settlement proceeds. In
Slide 31: Relative Performance: Retail Value Equity
Relative Performance: Retail Value Equity Performance is preliminary. As of June 30, 2009 *Performance figures other than 2Q 2009 positively affected by class action settlement proceeds. Investment performance of mutual funds is presented after investment management fees. Periods of more than one ye
Slide 32: Relative Performance: Retail Fixed Income
Relative Performance: Retail Fixed Income Performance is preliminary. As of June 30, 2009 *Performance figures for 3-, 5- and 10-year periods positively affected by class action settlement proceeds. Investment performance of mutual funds is presented after investment management fees. Periods of more
Slide 33: Relative Performance: Wealth Strategies
Relative Performance: Wealth Strategies Performance is preliminary. As of June 30, 2009 investment performance of mutual funds is presented after investment management fees. Periods of more than one year are annualized. The information in this table is provided solely for use in connection with this
Slide 34: Investment Performance: Delivering Results for Clients
Investment Performance: Delivering Results for Clients Performance is preliminary. As of June 30, 2009 AllianceBernstein. Past performance is no guarantee of future results. Source: Barclays Capital, Bloomberg, Citigroup, FTSE, JPMorgan Chase, Merrill Lynch, MSCI, Nomura, Russell Investment Group, S
Slide 35: AllianceBernstein Holding: Financial Results
AllianceBernstein Holding: Financial Results Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. In US dollars (millions)—except per unit amounts
Slide 36: Six-Quarter Deferred Compensation Net P&L Trend
Six-Quarter Deferred Compensation Net P&L Trend In US dollars (millions)
Slide 37: AllianceBernstein: Consolidated Balance Sheet
AllianceBernstein: Consolidated Balance Sheet In US dollars (millions)
Slide 38: AllianceBernstein: Consolidated Statement of Cash Flows
AllianceBernstein: Consolidated Statement of Cash Flows
Slide 39: Changes in Assets Under Management By Channel
Changes in Assets Under Management By Channel Three Months Ended June 30, 2009—In US dollars (billions) Percentages are calculated using AUM rounded to the nearest million.
Slide 40: Changes in Assets Under Management By Investment Service
Changes in Assets Under Management By Investment Service Three Months Ended June 30, 2009—In US dollars (billions) * Includes Index, Structured and Asset Allocation services. **Approximately $79.5 billion in Blend Strategies AUM are reported in their respective services. Percentages are calculated u
Slide 41: Changes in Assets Under Management By Channel
Changes in Assets Under Management By Channel 12 Months Ended June 30, 2009—In US dollars (billions) *Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. Percentages are calculated using AUM rounded to the
Slide 42: Changes in Assets Under Management By Investment Service
Changes in Assets Under Management By Investment Service 12 Months Ended June 30, 2009—In US dollars (billions) *Includes Index, Structured and Asset Allocation services. **Approximately $79.5 billion in Blend Strategies AUM are reported in their respective services. Percentages are calculated using
Slide 43: AllianceBernstein: Total Net Flows
AllianceBernstein: Total Net Flows In US dollars (billions)
Slide 44: Alternative Investment Services AUM
Alternative Investment Services AUM* In US dollars (billions) *Consists of Hedge Fund, Currency and Venture Capital services 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 inves
Slide 45: ALLIANCEBERNSTEIN
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