2012 10-25&26 low volatility high yield ab citywire italy ic2012671

Jeremy Cunningham, CFASenior Portfolio Manager—Fixed Income

Nicola MeottiDirector—Financial Institutions

Massimo Dalla VedovaDirector—Financial Institutions

This information is issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA, a company registered in England under company number 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Services Authority (FSA – Reference Number 147956). This information is directed at Professional Clients only. It is provided for informational purposes only and is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security, product or other instrument, or for AllianceBernstein to enter into or arrange any type of transaction as a consequence of any information contained herein. The views and opinions expressed in this document are based on AllianceBernstein's internal forecasts and should not be relied upon as an indication of future market performance. Past performance is no guarantee of future returns. This information is not intended for public use.©2012 AllianceBernstein

Calvagese della Riviera, 25-26th October

Best Large Bond Group 2012

AllianceBernstein: Lower Volatility High YieldHow a Conservative High-Yield Strategy Can Help Investors in Uncertain Markets

AllianceBernstein.com Low Volatility High Yield

Interest Rates Are at Historical Lows

1

0

2

4

6

8

10

12

14

16

55 69 83 97 110

2

4

6

8

10

12

88 92 96 00 04 08 12

Through August 31, 2012Source: Barclays Capital, Bloomberg and AllianceBernstein

10-Year Yields Investment-Grade Corporate Yields

Pe

rce

nt

Current 10-Year Yields

Bunds Gilts US Treasury

1.33% 1.46% 1.55%

Current Spreads

US Corporates Euro Corporates

289 b.p. 268 b.p.

Pe

rce

nt


Uncover Opportunities in a Low-Rate Environment by Investing in…

Short Duration

High Yield

Emerging Market Corporates

Less Liquid Credit

2

Shorter duration + higher

quality credit leads to high-yield

returns with less downside risk

Gain yield pickup versus both

developed-market corporates

and emerging-market

sovereigns

Earn above-market returns on

investments in large, well-

known companies

• Supply-chain finance

• Trade finance

• Infrastructure finance


Default

Inflation

Our View: A Delicate Balancing Act will Lead to Continued Volatility

33

Source: AllianceBernstein

WhichWay for

Governments?

Inaction

Growth Austerity


Uncover Opportunities in a Low-Rate Environment by Investing in…

Short Duration

High Yield

Emerging Market Corporates

Less Liquid Credit

4

Shorter duration + higher

quality credit leads to high-yield

returns with less downside risk

Gain yield pickup versus both

developed-market corporates

and emerging-market

sovereigns

Earn above-market returns on

investments in large, well-

known companies

• Supply-chain finance

• Trade finance

• Infrastructure finance

AllianceBernstein Short Duration High Yield Portfolio: designed to capture majority of upside of global high yield market whilst seeking to limit the volatility and downside.

AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield

High Yield: Exceptional Returns Since the Crisis

5

Past performance does not guarantee future results.High Yield Index Spreads: High Yield represented by the Barclays US High Yield Corporates Index . (US High Yield data is used as Global Index history is only available from December 2000 onward). Cumulative Returns: Global High Yield Corporates are represented by the Barclays Global High Yield Corporates Index; Equities are represented by the MSCI World (net dividend reinvested) index; Global Investment Grade Bonds are represented by the Barclays Global Aggregate index. All index returns are expressed in USD hedged terms.Source: Barclays Capital, Standard & Poor’s and AllianceBernstein

High Yield Bonds: Attractive Post Crisis

109

41

19

Global HighYield

Corporates

Global Equities GlobalInvestment

Grade Bonds

Cu

mu

lative

Re

turn

s (

%)

Cumulative Returns (%)Dec 31, 2008–June 30, 2012

7.7% 7.9% 7.8%

6.2%

9.0%

15.3%

Low VolatilityHigh Yield

High Yield US Equity

Annualized Return Annualized Volatility

Low Volatility High Yield vs. High Yield vs. Equities 1993–2011


High Yield Fundamentals: Remain in Good Shape

6

High Yield Corporates Have Continued to Deleverage*

Historical analysis and current forecasts do not guarantee future results. Historical information provided for illustrative purposes only. *High Yield Corporate Leverage Data as of 31 December 2011; universe is Citigroup High Yield Index ex Financials.**Default Rates are par-weighted default rates. Recession scenario assumes that every bond trading below 70 cents on the dollar defaults. Forecasts are as of 1 March 2012.Source: Citigroup, J.P. Morgan, Moody’s Analytics, and AllianceBernstein

0

1

2

3

4

5

99 01 03 05 07 09 11

Ra

tio

(×

)


As of July 27, 2012Sources: Barclays POINT, Capital IQ and J.P. Morgan

Companies Continue to Remain Conservative, as Shown in Quality of Issuance and Use of Proceeds…

7

Used of Proceeds (by Volume) Composition US HY Index

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

03

04

05

06

07

08

09

10

11

11

YT

D

12

YT

D

(% o

f T

ota

l New

Issuance)

General Corporate

Refinancing

Acquisition Finance / LBO

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sep 0

9

De

c 0

9

Ma

r 10

Jun 1

0

Sep 1

0

De

c 1

0

Ma

r 11

Jun 1

1

Sep 1

1

De

c 1

1

Ma

r 12

Jun 1

2

CCC and lower-rated B BB


…All of Which Will Help Limit the Rise in Defaults

8

Estimated Default Rate—One Year Ahead

As of June 30, 2012. Historical information provided for illustrative purposes onlySources: J.P. Morgan and AllianceBernstein Fixed Income Research

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Combined % Index $Px<70 C&I Standards Observed

•AllianceBernstein One Year Ahead Default Rate: 2.5%


803

1,173

1,551 1,554

229

462

211 263 222

(750)

(250)

250

750

1,250

1,750

2004 2005 2006 2007 2008 2009 2010 2011 F2012

(US

D B

illio

ns)

IG HY EM Corps EM Sovereign MBS, CMBS, ABS, CLOs Total Net Issuance

Technicals Are Positive for Spread Products…

9

As of July 18, 2012ABS includes Card, Auto, Student Loan and MH ABS. Source: J.P. Morgan

Net Issuance by Spread Product

…as net issuance is expected to fall

2012 coupons = $770

AllianceBernstein.com Low Volatility High Yield 101010

Why Now for AllianceBernstein Short Duration High Yield Portfolio?

Through June 30, 2012. Historical information provided for illustrative purposes only.*Incorporates equity index–implied volatilities, bond spreads, currency index–implied volatilities and equity mutual fund flowsSource: Bloomberg and AllianceBernstein

Global Risk Aversion Indicator*

(1.0)

0.5

2.0

3.5

5.0

00 02 04 06 08 10 12

Global High Yield Spreads (OAS)

0

400

800

1,200

1,600

2,000

Jan 95 Jan 99 Jan 03 Jan 07 Jan 11

Jan 1995 – June 2012

Average

B.p

.

High Yield Opportunity Remains Attractive Amid Highly Volatile Market Conditions


Historical information provided for illustrative purpose onlyThe 1–5 HY is represented by the Barclays US High Yield 2% Issuer Cap 1–5 Yr. index; US HY is represented by the Barclays US High Yield 2% Issuer Cap index; 5–10 HY is represented by the Barclays US High Yield 2% Issuer Cap 5–1 0 Yr. index; BB HY is represented by the Barclays US High Yield 2% Issuer Cap Ba Component; B HY is represented by the Barclays US High Yield 2% Issuer Cap B Component; and CCC HY is represented by the Barclays US High Yield 2% Issuer Cap Ca—D Component.Source: Barclays Capital

5

6

7

8

9

10

0 5 10 15 20

Re

turn

Risk

AllianceBernstein Short Duration High Yield Portfolio

11

US HY

BB HY

B HY

CCC HY

1-5Y HY

5-10Y HYEmphasize

De-emphasize

Higher Rated Shorter Duration HY Bonds Have Generated Higher Returns with Lower Volatility:January 1993–December 2011

AllianceBernstein Short Duration High YieldFocuses on Less Volatile High Yield Strategies

Focus on Higher

Credit Quality

EmphasizeShorter Duration

Implement Dynamic HedgingTo Manage Volatility

Short Duration

High Yield

AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield 12

Focus on Higher Credit Quality

Historical information provided for illustrative purpose onlyAs of 31 December 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. BB High Yield represented by Barclays Capital US High Yield 2% Issuer Constrained Index members with a BB credit quality.Source: Barclays Capital and AllianceBernstein

Higher rated high-yield bonds have outperformed lower-rated bonds over a

market cycle

Focus on Higher

Credit Quality



ShortDuration

High Yield Portfolio

High Yield vs. BB High Yield: Performance

Average Monthly Returns, 1993–2011

(2.2)

1.7

(1.5)

1.5

High Yield Market BB High Yield

When High Yield is Up

When High Yield is Down


Emphasize Shorter Duration

(2.2)

1.7

(1.4)

1.5

High Yield High Yield 1–5Yr

Historical information provided for illustrative purpose onlyAs of 31 December 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield 2% Issuer Constrained Index members with an Option Adjusted Duration of 1–5 years. Source: Barclays Capital and AllianceBernstein

High Yield vs. Short Duration High Yield: Performance

Average Monthly Returns, 1993–2011

When High Yield is Up

When High Yield is Down

The lower the duration of a bond, the less sensitive its price is to

changes in its yield

Focus on Higher

Credit Quality



Short Duration




Implement Dynamic Hedging to Manage Volatility

14

Focus on Higher

Credit Quality



ShortDuration


14

Portfolio

Equity Put Options

Bond Futures/Swaps

CreditDefault Swaps

CreditTranches

Currency Options

We apply hedging strategies designed to mitigate volatility and buffer the portfolio during extreme market stress

AllianceBernstein Short Duration High Yield PortfolioCan Access a Range of Hedging Strategies


AllianceBernstein Short Duration High Yield Portfolio:Delivering on Performance Expectations

Performing as expected� Outperforming the HY market in negative months (net of fees)� Lagging the HY market in positive months (net of fees)

6.4 6.9

9.5 10.0

AnnualizedReturns

AnnualizedVolatility

Short Duration HY Portfolio (Net)

Global HY Market (Gross)

(3.5)

(2.3)

4.7

(1.4)

1.6

2.6

1.2

(0.2)

0.9

(0.8)

1.61.2

1.0 0.9

(4.5)

(3.7)

6.3

(2.8)

2.7

3.7

2.8

0.20.8

(1.6)

2.1 2.01.5 1.6

Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12

AB Short Duration HY Portfolio Global HY Corporate Market

Past performance does not guarantee future results.In USD as of 30 September 2012.Short Duration High Yield Portfolio returns and volatility are for the A2 share class, net of fees.Global High Yield Market is represented by the Barclays Capital Global High Yield Corporates index, USD hedged

Since Inception:Aug 2011–Sep 2012

(Percent)

Retu

rns (

perc

ent)


AllianceBernstein Short Duration High Yield Portfolio - How to Use It

16

Limited Duration High Income (ALHAX)

Historical analysis do not guarantee future results.As of 30 June 2012Source: Lipper, AllianceBernstein

Harvest Profits from US High Yield�We advocate deploying assets to the Short Duration High Yield Fund because lower volatility

high yield bonds are in a “sweet-spot” of risk/return

�Maintain income in an environment where high quality bonds offer very little yield/return potential

� ‘Upgrade’ credit quality relative to traditional high yield portfolios

�Keep volatility in check relative to equities and more aggressive high yield portfolios

�Offer better risk/return characteristics than bank loans

Attractive Yield With an Eye on Volatility

� Higher Yields than Investment Grade Corporates

� Emphasize higher quality high yield bonds

� Emphasize shorter duration

� Implement hedging strategies to manage downside risk


Appendix


AllianceBernstein’s High Yield Credentials

� Manager of the largest High Yield fund in Luxembourg: AllianceBernstein Global High Yield Portfolio

� 40-year track record in managing fixed income strategies (Since 1971)

� 24-year track record in managing high yield strategies (Since 1987)

� $219 billion client assets under management in fixed income strategies

� $26 billion client assets under management in high yield assets*

� We have delivered consistent strong performance in our high yield portfolios:

� Our Global High Yield Portfolio and Global High Income composite are 1st quartile performers over the last 3, 5 and 10 years

� Our US High Yield composite performance is 1st quartile over the last 3 and 5 years

� Our European Income Portfolio is a 1st quartile performer over the last 3, 5 and 10 years

18

Performance figures are as of 30 June 2012. AUM figures are as of 30 June 2012.* Includes only dedicated high yield portfolios and the high yield component of multi-sector portfolios.Past performance does not guarantee future results.Note that although peer rankings are high, absolute performance over some periods may be negative. Source: Global High Yield Portfolio performance ranking refers to the A share class and the Lipper Global Bond Global High Yield Peer Group. Global High Income composite ranking refers to the eVestment Global High Yield Peer Group. US High Yield composite performance ranking refers to the eVestment US High Yield Peer Group. European Income Portfolio performance ranking refers to the A share class and the Lipper Global Bond EUR High Yield Peer Group.


Why AllianceBernstein Short Duration High Yield Portfolio?

19

� Stable, Experienced, Well Resourced Investment Team

� More than 20 years experience managing US$ 23 billion in high yield strategies *

� With 43 credit analysts around the world, we are able to carefully analyse credit issuers and securities to differentiate good quality investments from poor credit risks

� Well resourced with 7 economists, 9 quantitative analysts, 43 credit analysts and 49 portfolio managers focused on our fixed income clients

� Flexibility to Invest in Bonds with Maturity over 3 years

� allows for better diversification and a broader opportunity set

� Excludes CCC and lower rated bonds

� avoids unnecessary volatility

� Additional Portfolio Protection

�hedging strategies are key to managing downside volatility

Successfully Delivering a Low Volatility High Yield Corporate Bond Portfolio

* Includes dedicated high yield portfolios and the high yield component of multi-sector portfolios.As of 31 March 2012.Source: AllianceBernstein


Dynamic Hedging: Process of Implementation of Hedging Strategies

20

Portfolio

Equity Put Options

Bond Futures/Swaps

CreditDefault Swaps

CreditTranches

Currency Options

� Evaluate effectiveness of hedging strategy vs. Global High Yield Market

� Correlation analysis

� Dispersion analysis

� Evaluate cost of implementation

� Volatility level

� Yield curve shape

� Basis

� Absolute level/valuation

� Active management of level and optimal mix of hedging strategies

� Hedging strategies vs. beta reduction

� Strategy effectiveness

� Reduce strategies that are overvalued

� Increase/implement strategies that are undervalued




Historical analysis do not guarantee future results.*Rolling 3 month returns of A$ vs. US$ and Barclays Global High Yield Index US$ Hedged from 31.12.1998 to 30.4.2012Source: AllianceBernstein, Bloomberg, Barclays Capital

An example of Dynamic Hedging: Buy AUD Put Options vs USD

21

� Evaluate effectiveness of hedging strategy

� Australian Dollar (AUD) correlation with Global High Yield Market = 0.72*

� The hedge provides some protection against the negative impact of a falling high yield market

� Evaluate cost of implementation

� 15th May 2012: Buy 5% out-of-the-money 1 monthAUD put option: Cost = 0.01% of portfolio value

� Ongoing active management

� Reduced position gradually as AUD fell, and volatility increased (Point A to B) (Value of option increased)

0%

20%

40%

60%

80%

100%

Mar 99 Mar 01 Mar 03 Mar 05 Mar 07 Mar 09 Mar 11

Rolling Correlation Analysis AUD vs. Global High Yield

$0

$5

$10

$15

$20

$25

01/0

1/2

01

0

03/1

0/2

01

0

05/1

7/2

01

0

07/2

2/2

01

0

09/2

8/2

01

0

12/0

3/2

01

0

02/0

9/2

01

1

04/1

8/2

01

1

06/2

3/2

01

1

08/3

0/2

01

1

11/0

4/2

01

1

01/1

1/2

01

2

03/1

9/2

01

2

B

Option Volatility: A$ vs. US$

AMulti-year lows


AllianceBernstein Short Duration High Yield Portfolio

22

Objective� We aim to achieve high risk-adjusted returns through investing in a diversified portfolio of predominantly high yielding

securities with an average duration at portfolio level of less than four years

Investment Strategy� Relative to the broader high yield market, this fund emphasises a shorter average duration, a focus on higher quality high

yield issues, and hedging strategies to limit downside volatility

Benchmark � Barclays Capital Global High Yield 1–5 year Ba/B, USD hedged

Morningstar Peer Group � Bond Global High Yield

Base Currency � USD

Hedged Share Classes � EUR hedged, GBP hedged, other currencies can be made available

Liquidity � Daily

Distributions � Distribution share classes pay a variable monthly dividend

Investment Policy*

� Maximum 4 years portfolio duration

� No CCC or lower rated securities

� Minimum 80% exposure to corporate bond issuers

� Minimum 90% hedged to base currency

Investment Universe

� Fixed income securities; convertible securities; zero coupon treasury securities; structured securities and basket securities; variable, floating and inverse floating rate securities; inflation-protected securities; equities

� Derivatives may be used for both hedging and investment purposes

� Max 20% in structured investments, including MBS, ARMS, CMOs, ABS, CMBS and CDOs

� Max 10% in other UCITS or UCIs

� Max 10% in illiquid securities

As of 31 March 2012*Includes internal investment guidelines, beyond those described in the fund prospectus, which may be changed at the portfolio manager’s discretion without notification to investors.



Implement Dynamic Hedging to Manage Volatility

23

Focus on Higher

Credit Quality



ShortDuration


23

Portfolio

Equity Put Options

Bond Futures/Swaps

CreditDefault Swaps

CreditTranches

Currency Options

We apply hedging strategies designed to mitigate volatility and buffer the portfolio during extreme market stress



Hedging Strategies to Offset or Reduce Risk in Portfolio: Example Trades

24

Hedge Idea Implementation Impact

Yield CurveIf growth is anaemic inflation risk will fall (deflation risk increase). Longer dated bond yields fall as credit spreads widen

� Long 7-year and Short 5-year treasuries (curve flattener)

� Cost: zero cash outlay at the time of implementation

Gains on yield curve flattener offset losses from credit spread widening

Currency

If growth is anaemic commodity prices likely to fall, with a knock-on effect on commodity currencies

� Long AUD put/USD call

� Cost: currency option cheaper to buy than high yield index option at time of implementation

Gains on currency put option should offset losses on high yield portfolio

If the Eurozone sovereign debt crisis escalates, this may lead to a weaker Euro and be the likely catalyst for further sell-off of risky assets, including high yield

� Long EUR put/USD call

� Cost: currency option cheaper to buy than high yield index option at time of implementation

Gains on currency put option should offset losses on high yield portfolio

CDS

If risk aversion increases, spreads on all credit markets will widen further. Downside risk would see EM and Investment Grade Credit markets sell off as well. We evaluate the cost of buying protection on all sectors –i.e. which sectors are the most resilient and not yet pricing in a negative outlook, and buy protection on those

� Buy Protection on Investment Grade Corporate and Emerging Market Indices

� Cost: lower cost versus buying protection on high yield indices at time of implementation

Gains on CDS protection should partially offset losses in high yield portfolio

Equity Options

If the market environment is negative for companies, equity markets, both high yield and equity markets will sell off. We evaluate the cost of buying puts on both equity and high yield sectors to see where the hedge can be implemented most cost effectively

� Long put options on S&P equity index, short put option on HY CDX Index

� Cost: zero cash outlay at time of implementation, as sale of HY puts funded purchase of equity puts

Gains on equity index put options will offset losses on high yield sell-off

Past performance does not guarantee future resultsExamples listed include all hedging trades initiated between 1 August 2011 and 14 November 2011. Subsequent to initiation, hedge positions may have been increased or closed.


SDHY Investible Universe* 1100+ Issuers with Over $900 Billion Nominal of Bonds Outstanding

25

Historical information provided for illustrative purpose onlyAs of 31 December 2011Based on the Barclays Capital Global High Yield Index*Calculated using all bonds in the index with an option adjusted duration of 5 years and less Numbers may not sum due to rounding.

BB48%

B40%

CCC11%

CC1%

C0.4%

NR0.3%

Average Rating of Global High Yield Universe: B Average Duration of Global High Yield Universe: 4.4 Years

0–327%

3-537%

5+36%


Portfolio Exposures and Characteristics: Distribution Share Class

26

As of 30 June 2012. All data is subject to change.*Credit exposures by sector and by rating covers credit holdings within the portfolio only, and excludes from consideration any holdings in cash, currency forwards, currency options, interest rate swaps and any AA- or higher rated government bond holdings.**Fixed income exposures by country of risk excludes from consideration any holdings in cash, currency forwards and currency options.Source: AllianceBernstein

Duration and Yield

Corporate Industrials76.2%

Bank Loans5.6%

Commercial Mortgage Backed Secs (CMBS)

3.2%Corporate Utilities

3.7%Emerging Market Quasi-Sovereign

1.5%Emerging Market

Sovereigns1.8%

Preferred Shares1.3%

High Yield & Equity Options

0.1%

CorporateFinancials

6.6%

Credit Exposure by Rating*: Average Rating BB-

InvestmentGrade6.9%

B63.4%

BB29.7%

Non Credit0.1%

Portfolio Duration 2.9 years

Net Distribution Yield

AT Share Class 3.73%

BT Share Class 2.75%

AT Share Class EUR hedged 3.40%

AT Share Class GBP hedged 3.82%

Credit Exposures by Sector *


Portfolio Exposures and Characteristics: Accumulation Share Class

27

As of 30 June 2012. All data is subject to change.*Credit exposures by sector and by rating covers credit holdings within the portfolio only, and excludes from consideration any holdings in cash, currency forwards, currency options, interest rate swaps and any AA- or higher rated government bond holdings.**Fixed income exposures by country of risk excludes from consideration any holdings in cash, currency forwards and currency options.Source: AllianceBernstein and Barclays

Duration and Yield

Corporate Industrials76.2%

Bank Loans5.6%

Commercial Mortgage Backed Secs (CMBS)

3.2%Corporate Utilities

3.7%Emerging Market Quasi-Sovereign

1.5%Emerging Market

Sovereigns1.8%

Preferred Shares1.3%

High Yield & Equity Options

0.1%

CorporateFinancials

6.6%

Credit Exposure by Rating*: Average Rating BB-

InvestmentGrade6.9%

B63.4%

BB29.7%

Non Credit0.1%

Portfolio Duration 2.9 years

Gross Yield to Worst:

Short Duration High Yield Bond Fund 5.30%

Barclays Global Corporate High Yield Bond Index 7.75%

Barclays Global Investment Grade Corporate Bond Index 4.07%

Barclays Global Treasuries Index 1.51%

Credit Exposures by Sector *


AllianceBernstein: A Leader in Fixed Income Investing

2828

Fixed-Income Assets Under Management: $220 Billion

Credit

$80 billion

Global Multi-Sector*

$61 billion

Emerging Mkts/ High Income

$49 billion

US Tax-Exempt

$29 billion

Research Analysts

55

Portfolio Managers

47

Global Resources

Traders

16

As of 30 June 2012*Includes global and regional single and multi-sector mandatesStrategy AUM totals will not sum due to rounding

28


Our Award-Winning Fixed Income Platform

Best Large Bond Group 2012

� In Europe, Austria, France, Germany,

�Spain and Switzerland

Fund Awards 2012

� Best Global High Yield Bond Fund

� Best Global Emerging Markets Bond Fund

� Best European Bond Fund

� Best US Dollar Bond Fund

29

AllianceBernstein has been named best large bond manager in Europe by Lipper, the mutual fund rating agency. We ranked #1 in the following categories of Lipper 2012 fund awards:

€uro Fund Awards 2012

� American Income Portfolio

� European Income Portfolio

Feri Fund Awards

� RMB Income Plus Portfolio

� Most Innovative Fund of 2012

Further Recognition for our Fixed Income Services

For more information on AllianceBernstein Fixed Income, visit www.alliancebernstein.com/solution/fixed-income-eu


Our Award-Winning Fixed Income Platform

30

6 Awards For Best Large Bond Manager

AllianceBernstein� Lipper Fund Awards 2012 Europe, Austria, France, Germany, Spain,

Switzerland: Bond Large over 3 Years

3 Gulf Country Fund Awards

American Income Portfolio

� Lipper Fund Awards 2012 Gulf:

� Bond USD over 3 Years

Emerging Markets Debt Portfolio


� Bond Emerging Markets Global over 5 Years

European Income Portfolio


� Bond Europe over 3 Years

34 European Fund Awards

American Income Portfolio

� €uro Fund Awards 2012 Germany: Bonds USD over 3 and 10 Years

Emerging Markets Debt Portfolio

� Lipper Fund Awards 2012 Europe, Austria, France, Germany, Spain,

Switzerland: Bond Emerging Markets Global over 5 Years

European Income Portfolio

� €uro Fund Awards 2012 Germany: Bonds European Currencies

over 3 Years

� Lipper Fund Awards 2012 Europe, Austria, France, Germany, Spain,

Switzerland: Bond Europe over 3 Years

Global High Yield Portfolio

� Lipper Fund Awards 2012 Europe: Bond Global

—High Yield over 5 and 10 Years

� Lipper Fund Awards 2012 Germany, UK: Bond Global


� Lipper Fund Awards 2012 Austria, France, Switzerland: Bond

Global—High Yield over 3, 5 and 10 Years

� Lipper Fund Awards 2012 Spain: Bond Global


RMB Income Plus Portfolio

� Feri Euro Ratings Award 2012: Best Fund—Fund Innovations

� Fondmarknaden Award 2011: Best Fund Launch of the Year


AllianceBernstein Product Range June 2012

31


AllianceBernstein Product Range June 2012

32


Disclosures


A Word About Risk

34

A WORD ABOUT RISK

Market Risk: The market values of the investments may rise and fall from day to day, so investments may lose value.Interest Rate Risk: Bonds may lose value if interest rates rise or fall—long-duration bonds tend to rise and fall more than short-duration bonds.Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or capital—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline.Allocation Risk: Allocating to different types of assets may have a large impact on returns if one of these asset classes significantly underperforms the others.Foreign Risk: Investing in overseas assets may be more volatile because of political, regulatory, market and economic uncertainties associated with them. These risks are magnified in assets of emerging or developing markets.Currency Risk: currency fluctuations may have a large impact on returns and the value of an investment may be negatively affected when translated into the currency in which the initial investment was made.Capitalization Size Risk: Holdings in smaller companies are often more volatile than holdings in larger ones.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.

The value of an investment can go up or down and past performance is neither indicative of, nor a guarantee of, future results. The sale of AllianceBernsteinfunds may be restricted or subject to adverse tax consequences in certain jurisdictions. This information is directed solely at persons in jurisdictions where the funds and relevant share class are registered or who may otherwise lawfully receive it. Before investing in AllianceBernstein funds, investors should review the fund's full prospectus, together with the fund’s Key Investor Information Document and the most recent financial statements. Copies of these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge from AllianceBernstein(Luxembourg) S.A.R.L., by visiting www.alliancebernstein.com or by contacting the local distributor in the jurisdictions in which the funds are authorised for distribution.

AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.

©2012 AllianceBernstein L.P. www.alliancebernstein.com

Date post:	19-Oct-2014
Category:	Documents
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2012 10-25&26 low volatility high yield ab citywire italy ic2012671

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