AllianceBernstein– Global Equity Blend Portfolio 31/03 – 03/04/2008 The sale of shares in AllianceBernstein (AB) funds may be restricted in certain jurisdictions. In particular, no shares may be acquired by persons in the UK except in certain circumstances and shares may not be offered or sold, directly or indirectly, in the United States or to US Persons, as described in the Portfolio’s prospectus. Further details may be obtained from the Distributor. A portfolio of ACMBernstein, a mutual investment fund (fonds commun de placement) organized under the laws of Luxembourg, which conducts business outside of Germany, Austria and Switzerland under the name AllianceBernstein. There is no guarantee that any forecasts or opinions in this material will be realized. Information should not be construed as investment advice. For financial representative use only. Not for inspection by, distribution or quotation to, the general public. SONG LI, CFA Senior Portfolio Manager Blend Strategies JUNE WONG Managing Director Head of Institutions, North Asia MAX WONG Client Relationship Manager,Institutions North Asia
Transcript
AllianceBernstein–Global Equity Blend Portfolio
31/03 – 03/04/2008
The sale of shares in AllianceBernstein (AB) funds may be restricted in certain jurisdictions. In particular, no shares may be acquired by persons in the UK except in certain circumstances and shares may not be offered or sold, directly or indirectly, in the United States or to US Persons, as described in the Portfolio’s prospectus. Further details may be
obtained from the Distributor. A portfolio of ACMBernstein, a mutual investment fund (fonds commun de placement) organized under the laws of Luxembourg, which conducts business outside of Germany, Austria and Switzerland under the name AllianceBernstein. There is no guarantee that any forecasts or opinions in this material will be realized.
Information should not be construed as investment advice.For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
SONG LI, CFASenior Portfolio Manager
Blend Strategies
JUNE WONGManaging Director
Head of Institutions, North Asia
MAX WONG Client Relationship Manager,Institutions
North Asia
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2AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
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Diversification allows for continuous investment across all areas of the firm
Stability ensures unwavering commitment to each disciplined style of investing
Relationships span client groups and investment strategies, furthering understanding of a client’s needs
Global orientation with local knowledge enhances investment expertise and ultimately portfolio returns for clients
As of December 31, 2007*Total assets under management of AllianceBernstein L.P.
AllianceBernstein: Exceptional Breadth and Scope
Assets Under Management ($ Billions)*
By Client GroupInstitutional $508Retail 183Private Client 109Total $800
By Investment DisciplineGrowth $118Value 303Blend/Alternative Strategies 187Fixed Income 192Total $800
AllianceBernstein
US38%
Service Client Domicile
Non-US62%
US60%
Non-US40%
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Buy-Side Fundamental Research Analysts Alliance Growth Equities
Research Teams
Consumer 18
Energy/Natural Resources 9
Finance 13
Healthcare 6
Infrastructure 8
Mid-Cap Generalists 5
Technology/Telecom 20
Total 79
Bernstein Value EquitiesResearch Teams
Commodities 14
Consumer 12
Financials 10
Industrials 18
Multi-Industry 6
Technology/Telecom 8
Total 68
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AllianceBernstein Funds —
Global Equity Blend Portfolio
AllianceGlobalGrowth
Builds on history of strong returns in growth and value
Mitigates style risk through negatively correlated premiums
BernsteinGlobal Value
50% 50%
Equity Blend Portfolio: Active Core Strategy
100 to 150 Stocks 200 to 300 Stocks 100 to 150 Stocks
Investment policies apply under normal market conditions.As of 31 December 2007Source: AllianceBernstein
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AllianceBernstein: Two Clear Investment Philosophies
Profits &Stock Decline
EarningsGrowthDecelerates
CorrectiveStrategies
Long-TermEarnings Power
Growth Investing
Value Investing
Goal: Find underappreciated growth potential
Research question:Will growth outpace expectations?
Goal: Buy out of favor bargains
Research question:Will depressed earnings recover?
EarningsGrowthAccelerates
Investment policies apply under normal market conditions.As of 31 December 2007Source: AllianceBernstein
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Blend Moderates Sector Risk of Components
Sector weightings will vary over time. Holdings subject to change.As of 31 December 2007*Versus MSCI World IndexSource: MSCI and AllianceBernstein
Active Weights*
Value Growth Blend
7.8%
7.5%
3.5%
(5.5)%
0.2%
(4.8)%
(4.7)%
(0.9)%
(1.1)%
(1.9)%
0.2%
1.0%
0.5%
2.4%
4.4%
(4.3)%
0.3%
(0.5)%
(1.2)%
(2.7)%
4.0%
4.3%
2.0%
0.3%
(0.5)%
(2.1)%
(2.2)%
(2.6)%
(1.1)%
(1.9)%
Financials
Materials
Energy
Health Care
Information Technology
Consumer Discretionary
Consumer Staples
Industrials
Utilities
Telecommunications
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Two Successful Approaches that Can Outperform in Different Ways
Two outstanding track records, achieved using different style-pure investment processes
The complementary approaches have a low correlation of premiums and therefore can reduce risk when combined
14.9%
8.7%
12.2%
8.5%
GlobalResearchGrowth
MSCIWorld
GlobalValue
MSCIWorld
Annualized Performance Since Inception
Correlation of Global Research Growth andGlobal Value Premiums*
In US dollarsAs of December 31, 2007Inception dates: Global Research Growth—December 31, 1991; Global Value—September 30, 1995*Beginning September 30, 1995Periods of more than one year are annualized. Past performance is no guarantee of future results. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees; the client’s return will be reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account, paying a 0.50% annual fee, with a given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part II of AllianceBernstein’s Form ADV.Source: MSCI and AllianceBernstein; see Performance Disclosures.
No Correlation
Perfect Correlation
Perfect Inverse Correlation(0.3)
0.0
1.0
(1.0)
AllianceBernstein Blend Strategies
GA1-14-08
Two Successful Approaches that Can Outperform in Different Ways
Two outstanding track records, achieved using different style-pure investment processes
The complementary approaches have a low correlation of premiums and therefore can reduce risk when combined
14.9%
8.7%
12.2%
8.5%
GlobalResearchGrowth
MSCIWorld
GlobalValue
MSCIWorld
Annualized Performance Since Inception
Correlation of Global Research Growth andGlobal Value Premiums*
In US dollarsAs of December 31, 2007Inception dates: Global Research Growth—December 31, 1991; Global Value—September 30, 1995*Beginning September 30, 1995Periods of more than one year are annualized. Past performance is no guarantee of future results. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees; the client’s return will be reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account, paying a 0.50% annual fee, with a given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part II of AllianceBernstein’s Form ADV.Source: MSCI and AllianceBernstein; see Performance Disclosures.
No Correlation
Perfect Correlation
Perfect Inverse Correlation(0.3)
0.0
1.0
(1.0)
AllianceBernstein Blend Strategies
GA1-14-08
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In US dollarsThe results portrayed reflect hypothetical rather than actual results, and therefore have certain inherent limitations. For example, the results do not represent actual trading and do not reflect the impact that material economic and market factors might have had on AllianceBernstein’s decision making if it were actually managing clients' money. The results assume continuous investment for the entire period and that the investor reinvested dividends and other earnings. Accounts managed in this style may incur losses as well as gains. No representation is being made that any account will, or is likely to, achieve results similar to those described herein.Periods of more than one year are annualized. Past performance is no guarantee of future results. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees; the client’s return will be reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account, paying a 0.50% annual fee, with a given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part II of AllianceBernstein’s Form ADV.Source: MSCI and AllianceBernstein; see Performance Disclosures and Notes on Global Style Blend Simulation.
Style Blend Has High Premium Potential with Moderate Risk
Performance Relative to MSCI WorldSeptember 1995–December 2007
Bernstein
Global Value Alliance Global
Research Growth
AllianceBernstein Global Style Blend
(Simulated)
Premium +3.3% +4.2% +4.0%
Tracking Error 7.4% 7.4% 4.4%
Information Ratio 0.44
0.57
0.91
AllianceBernstein Blend Strategies
Richard1-14-08
In US dollarsThe results portrayed reflect hypothetical rather than actual results, and therefore have certain inherent limitations. For example, the results do not represent actual trading and do not reflect the impact that material economic and market factors might have had on AllianceBernstein’s decision making if it were actually managing clients' money. The results assume continuous investment for the entire period and that the investor reinvested dividends and other earnings. Accounts managed in this style may incur losses as well as gains. No representation is being made that any account will, or is likely to, achieve results similar to those described herein.Periods of more than one year are annualized. Past performance is no guarantee of future results. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees; the client’s return will be reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account, paying a 0.50% annual fee, with a given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part II of AllianceBernstein’s Form ADV.Source: MSCI and AllianceBernstein; see Performance Disclosures and Notes on Global Style Blend Simulation.
Style Blend Has High Premium Potential with Moderate Risk
Performance Relative to MSCI WorldSeptember 1995–December 2007
Bernstein
Global Value Alliance Global
Research Growth
AllianceBernstein Global Style Blend
(Simulated)
Premium +3.3% +4.2% +4.0%
Tracking Error 7.4% 7.4% 4.4%
Information Ratio 0.44
0.57
0.91
AllianceBernstein Blend Strategies
Richard1-14-08
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Fourth Quarter 2007 Review
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AllianceBernstein Global Equity Blend Portfolio ： NAV (S1)
11AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
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AllianceBernstein Global Equity Blend Portfolio: Performance Summary
In US Dollars
Global Equity Blend S1 3.3% 7.1% 14.2%
MSCI World 4.8 9.0 12.8
Relative Performance (1.5)% (1.9)% +1.4%
Three Years
OneYear
Periods Ended Dec 31, 2007
SinceInception*
AllianceBernstein Blend Strategies
Past performance does not guarantee future results.As of 31 December 2007*Fundo Class S1 shares inception date 26 February 2007Total returns, provided by AllianceBernstein, reflect the change in net asset value and assume reinvestment of any distributions paid on fund shares for the period shown, but do not reflect sales charges. Accordingly, these figures do not represent actual returns to an investor. The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Investors cannot invest directly in an Index or Average and returns are not indicative of any specific investment including any AllianceBernstein fund. See end of presentation for index descriptions and disclosures.Source: Standard & Poor’s, Mercer Investment Consulting, MSCI, FactSet Spar and AllianceBernstein
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Most Equity Markets Rose in 2007, Despite Upset in Second Half
Past performance does not guarantee future results. As of 31 December 2007EM and Europe represented by MSCI indices; US large-cap by S&P 500; US small-cap by Russell 2000; UK by FTSE All-Share; and Japan by TOPIXSource: FactSet, FTSE, MSCI, Russell Investment Group, TSE and AllianceBernstein
Cumulative Return for 2007 in Local Currencies
Jan–Jun Jul–Dec
EM +33.2%
UK +2.6
US Large-Cap +5.5
US Small-Cap (1.6)
Japan (11.1)
Europe +6.0
Indexed to Jan 1 open
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The Catalysts for Upset: US Subprime Mortgage Woes and Write Offs
0
5
10
15
20
25
30
35
0 5 10 15 20 25 30 35 40 45
Loan Age (Months)
Per
cent
2004Cohort
2005Cohort
2006Cohort
2007Cohort
Current analysis does not guarantee future results. *Through November 2007. Seriously delinquent is defined as the percentage of loans that are 90 days or more delinquent or in the process of foreclosure. **All figures are net of financial hedges the firms used to mitigate their losses. The figures include charges the firms have said they expect to report for the fourth quarter. Analysts estimate additional writedowns and credit losses of $34 billion, which would bring the total for the year to $131 billion. Source: Bloomberg, LoanPerformance and company reports
US Subprime MortgagesSeriously Delinquent as % of Total*
Losses on Subprime Mortgages in 2007** In US $ Billion
Citigroup 15.8UBS 14.4HSBC 10.7Morgan Stanley 9.4Merrill Lynch 7.9Bank of America 6.1Washington Mutual 4.2Wachovia 3.9Deutsche Bank 3.1Canadian Imperial (CIBC ) 3.0Barclays 2.7Bear Stearns 2.6Royal Bank of Scotland 2.5Lehman Brothers 1.5Mizuho Financial Group 1.5Wells Fargo 1.4JPMorgan Chase 1.3Credit Suisse 1.0National City 0.9Nomura Holdings 0.9Japanese banks (excluding Mizuho, Nomura) 1.2Canadian banks (excluding CIBC) 1.2
Total 97.2
FirmTotal
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0.0
0.5
1.0
1.5
2.0
2.5
84 87 90 93 96 99 01 04 07
Per
cent
Central Bank Actions Helped, But Credit Markets Are Still Jittery
Interbank lending remains under stress
LIBOR—Treasury Spread**
Current analysis does not guarantee future results. As of 31 December 2007*Annualized standard deviation of MSCI World daily total returns in local currencies on a rolling 20-day basis**Three month US LIBOR rate minus three-month US T-bill Source: Bloomberg, Datastream, Lehman Brothers, MSCI and AllianceBernstein
Credits spreads for investment grade and high-yield corporate debt widened from unusually low to unusually high levels
0
300
600
900
90 92 94 96 98 00 02 04 06
Bas
is P
oint
s
Spreads to Treasuries
US Investment-Grade Corporates
Global Investment-Grade Corporates
Global High-Yield BondsUS High-Yield Bonds
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Our Growth Sleeve Is Well Positioned for the Current Environment
Our growth sleeve is concentrated in larger-cap companies with strong balance sheets that make them less vulnerable in the current tight credit markets
Current analysis does not guarantee future results. Holdings will vary over time. As of 31 December 2007*Full-year numbers represent average of the individual quarters’ results.**Defines the portfolio’s incremental exposure to Barra’s success attribute, which is price momentum, relative to the MSCI benchmark; four-quarter moving average Source: Barra, MSCI, Thomson I/B/E/S and AllianceBernstein
Market Capitalization Profile (US$ Billions)
Our exposure to stocks with strong growth characteristics remains consistent with the growth cycle opportunity
Price Momentum Exposure vs. MSCI World **
The growth sleeve is firmly anchored in companies that deliver positive earnings surprises, as reflected in upward earnings revisions that exceed benchmark levels
63%
27%
10%Over $30 billion
$10 billion to $30 billion
Under $10 billion
0.00
0.10
0.20
0.30
0.40
59% 64% 63%52% 53% 50%
2005 2006 2007
Global Research Growth MSCI World
Companies with Positive Earnings Revisions*
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Energy & Natural Resources: Our Outlook Remains Favorable
Change in Absolute Weightings for Select Subsectors*
Current analysis and estimates do not guarantee future results. As of 31 December 2007*Based on a representative Global Research Growth account; active subsector displays per MSCI industry classificationsSource: Emerging Energy Research, MSCI and AllianceBernstein; see Disclosures and Important Information.
Utilities, including Veolia and Iberdrola Renewables, capitalize on growing global demand for centralized water and energy. Iberdrola offers direct exposure to growth in wind power
Firm pricing trends keep the energy services and natural resources subsectors attractive, and we see increasing potential in utilities
Our forecasts for prices on key natural resources are above consensus, and investments such as Noble Energy, Rio Tinto and China Shenhua reflect our views on copper and oil
Commodity Prices: AllianceBernstein Forecast vs. Consensus
Estimated Growth in Global Wind Power Production
0
100,000
200,000
300,000
06 07 08 09 10 11 12 13 14 15
Meg
awat
ts
5.2 4.8
0.0
4.7 5.4
2.5
Year-End 2006 Year-End 2007
Metals & Mining
Independent Power Producers & Energy
Energy Equipment & Services
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Current valuations and historical analysis do not guarantee future results. *12-month trailing earnings through 31 December 2007**These data represent Bernstein’s estimate of the amount by which the most attractively priced large-cap global stocks sell below overall market valuations. The proportion of Bernstein investments in stocks from this group will vary over time but will typically be high. Bernstein’s estimates of the fair value of these stocks may not be realized for a variety of reasons. Data through 1 January 2008Source: Compustat, Datastream, DRI, FactSet, MSCI, Salomon Smith Barney, Thomson I/B/E/S and AllianceBernstein
Valuation spreads are beginning to widen
Value Opportunity Is Picking Up
Equity valuations remain reasonable
Valuations: World Price/Earnings*
Discount to Fair Value**
10
20
30
40
50
71 75 79 83 87 91 95 99 03 07
InternetEuphoria
Japan AssetBubble
Oil Shock
Per
cent
0
10
20
30
40
70 73 76 80 83 87 90 93 97 00 04 07
Rat
io (
×)
Average
Average
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Corporate Profitability and Balance Sheets Have Been Healthy
*Based on trailing 12-month ROE from 1976 through December 2007 in local prices, except emerging markets, which is September 1996 through December 2007 in US dollars**Based on Bernstein’s global large-cap universe, equally weighted; debt ratio defined as debt divided by debt plus equity; excludes outliers; through December 1, 2007Source: Datastream, FactSet, Lehman Brothers, MSCI, S&P, Thomson I/B/E/S and Bernstein
Average 1/76 to current except emerging 09/96 to current
Source: FactSet, MSCI and Bernstein
Ordered by average value
Through: Dec 07
30
35
40
45
92 95 98 01 04 07
Servicing Stories
Corporate Profitability and Balance Sheets Have Been Healthy
*Based on trailing 12-month ROE from 1976 through December 2007 in local prices, except emerging markets, which is September 1996 through December 2007 in US dollars**Based on Bernstein’s global large-cap universe, equally weighted; debt ratio defined as debt divided by debt plus equity; excludes outliers; through December 1, 2007Source: Datastream, FactSet, Lehman Brothers, MSCI, S&P, Thomson I/B/E/S and Bernstein
Average 1/76 to current except emerging 09/96 to current
Source: FactSet, MSCI and Bernstein
Ordered by average value
Through: Dec 07
30
35
40
45
92 95 98 01 04 07
Servicing Stories
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(10)
0
10
20
30
JPMorgan Merrill Lynch Morgan Stanley
US Financials: Attractive Long-Term Opportunities Despite Current Stress
The Portfolio’s US financial holdings typically deliver strong profits, despite periodic losses
These holdings benefit from a diverse mixof businesses
FY 2007 Earnings*
Business Mix: As a Percent of Revenue
Investor anxiety has left valuations at deep discounts, representing compelling long-term value
Price-to-Book Valuation Discounts
US
$ B
illio
n
As of 31 December 2007Data may not sum due to rounding.*Estimated pretax earnings. Losses are announced write-downs related to subprime mortgage exposure. Losses also include the increase in reserves for JPMorgan.**Historical financial sector discount vs. MSCI World from 1 January 1990 through 31 December 2007Source: Federal Reserve, US Census Bureau, company reports and AllianceBernstein; see Disclosures and Important Information.
20AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
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70 73 76 79 82 85 88 91 94 97 00 03 06
Major Declines in the Stock Market: MSCI World
Growth of USD 1 Mil.
USD 33.7 Mil.
(17)%
(36)%(11)%
(18)%
(10)%
(21)%(24)%
(13)%
(46)%
Past performance does not guarantee future results.Source: MSCI and Alliance Capital Management. As of 31 January 2006.MSCI World Index is a market capitalization-weighted index that measures the performance of stock markets in 22 countries, including the US. An investor cannot invest directly in an index or average and they do not include sales charges or operating expenses associated with an investment in a mutual fund, which would reduce total returns.
Asia Financial Crisis
Internet Bubble
SARS
911
US “Black Monday”
Iraq invaded Kuwait
Japan Economic Bubble Burst
1st Oil Crisis
2nd Oil Crisis
US Stock Market Crash
Oil new-high to USD35
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Appendix
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Price/Earnings2009E
EPS Growth2009E/2007 Annualized
14.5%
10.7%
12.4%
Global GrowthHoldings
Global EquityBlend Portfolio
MSCI World
Current analysis and estimates do not guarantee future results.As of 31 December 2007Source: I/B/E/S, MSCI and AllianceBernstein
A Winning Balance of Future Growth and Price
9.7×
11.2×12.3×
Global ValueHoldings
Global EquityBlend Portfolio
MSCI World
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Sector weightings will vary over time.As of 31 December 2007Totals may not add due to rounding. An investor cannot invest directly in an index or average and they do not include sales charges or operating expenses associated with an investment in a mutual fund, which would reduce total returns. See end of presentation for index description. Source: MSCI and AllianceBernstein
AllianceBernstein— MSCIValue Growth Global Equity World
Holdings Holdings Blend Portfolio Index
Consumer Discretionary 10.0% 5.5% 7.7% 9.8%
Consumer Staples 4.0 9.1 6.6 8.8
Energy 14.4 11.4 12.9 10.9
Financials 30.4 22.7 26.5 22.6
Health Care 6.9 11.1 9.0 8.7
Industrials 6.7 10.9 8.8 11.4
Information Technology 5.6 15.4 10.5 11.0
Materials 14.7 8.2 11.4 7.2
Telecommunications Services 3.7 2.2 2.9 4.9
Utilities 3.7 3.5 3.6 4.7
Total 100.0% 100.0% 100.0% 100.0%
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AllianceBernstein—Global Equity Blend Portfolio: Country Weights
Country weightings will vary over time.As of 31 December 2007*Includes Middle East and Latin America. An investor cannot invest directly in an index or average and they do not include sales charges or operating expenses associated with an investment in a mutual fund, which would reduce total returns. See end of presentation for index description. Source: MSCI and AllianceBernstein
US 37.6 55.4 46.4 47.4North America Total 42.6% 56.7% 49.6% 51.3%
UK 13.0 8.2 10.6 10.8
Europe ex-UK 22.8 18.2 20.8 23.3
Europe Total 35.9% 26.4% 31.4% 34.1%
Japan 12.4 2.8 7.6 9.7
Developed Pacific ex-Japan 1.5 2.0 1.8 4.9
Developed Asia-Pacific 13.9% 4.8% 9.4% 14.6%
Emerging Markets 7.6% 12.1% 9.6% 0.0%
World Total 100.0% 100.0% 100.0% 100.0%
AllianceBernstein— MSCIValue Growth Global Equity World
Holdings Holdings Blend Portfolio Index
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Why Invest Globally? No Asset Class or Region Wins All of the Time…
Annual Returns (%) As of 31 December 2006 (USD)
Past performance does not guarantee future results. An investor cannot invest directly in an index, and its performance is not representative of any AllianceBernstein mutual funds. The following indices represent the major asset classes: Global Value Stocks: MSCI World Value Index; Global Growth Stocks: MSCI World Growth Index; Global Bonds: Lehman Global Aggregate Bond Index; Cash: US T-Bill 90-Day Index; US: S&P 500 Index; Regions: MSCI Indices.
26AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
public.
Notes on Global Equity Blend Simulation
The Global Equity Blend Simulation results were calculated by value-weighting the actual composite returns of AllianceBernstein Global Research Growth and actual composite returns of AllianceBernstein Global Value, starting at a 50/50 percentage ratio. Both the Global Value and the Global Research Growth portions were then allowed to compound until either portion made up more than 55% of the combined total. At this point, the portions were rebalanced so that the larger part represented 52.5% of the combined total, and the smaller portion represented 47.5%. Upon rebalancing, transaction costs of 75 basis points were applied to the rebalanced portions of the portfolio and this total transaction cost was deducted from the total return.
Simulated results do not represent actual trading using client assets but (i) were achieved by means of the retroactive application of a model designed with the benefit of hindsight; and (ii) do not reflect the impact that material economic factors may have had on our decision-making. Simulation statistics may not be indicative of future results; there is always the potential for loss as well as for profit.
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27AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
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References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AllianceBernstein. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for the portfolio, and it should not be assumed that investments in the securities identified were or will be profitable.
Disclosure on Stock Examples
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28AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
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Index Descriptions and Disclosure
The MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of June 2006, the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.
The MSCI Value and Growth Indices cover the full range of developed, emerging and All Country MSCI Equity Indices. As of the close of May 30, 2003, MSCI implemented an enhanced methodology for the MSCI Global Value and Growth Indices, adopting a two dimensional framework for style segmentation in which value and growth securities are categorized using different attributes - three for value and five for growth including forward looking variables. The objective of the index design is to divide constituents of an underlying MSCI Standard Country Index into a value index and a growth index, each targeting 50% of the free float adjusted market capitalization of the underlying country index. Country Value/Growth indices are then aggregated into regional Value/Growth indices. Prior to May 30, 2003, the indices used Price/Book Value (P/BV) ratios to divide the standard MSCI country indices into value and growth indices. All securities were classified as either "value" securities (low P/BV securities) or "growth" securities (high P/BV securities), relative to each MSCI country index.
The S&P/Citigroup Primary Market Index (PMI) and Extended Market Index (EMI) divide the Broad Market Indexes (BMI) by relative-size on a country-by-country basis. The PMI/EMI split is determined by first ranking all BMI companies by total capitalization. Starting at the top of the list each constituent's available capitalization (float) is incrementally added. The top 80% of each country's available capital becomes the PMI, and the remaining 20% represents the EMI. All eligible issues of a company are added to the Index during the Index reconstitution, if their combined available market capitalisation equals or exceeds US$100 million, and are then assigned to either the PMI or the EMI. Stocks with an available market capitalization below US$75 million as of the Index reconstitution are deleted from the BMI. The S&P/Citigroup PMI Growth and Value Indices use three growth and four value variables to classify companies as either growth, value, or a combination of both. Cluster analysis is used and growth and value scores are calculated to show the relative magnitude of a stock's growth and value characteristics using equally weighted variables. High growth, low value stocks are classified as pure growth; high value, low growth as pure value. The remaining stocks' available market value is allocated to each of the indices according to its growth and value probability weights. The weights are then adjusted so that the constituents of each style index comprise approximately 50% of the float capital of the annually reconstituted PMI and EMI index within each country and region.
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29AllianceBernsteinFor financial representative use only. Not for inspection by, distribution or quotation to, the general
public.
The sale of shares in AllianceBernstein funds may be restricted in certain jurisdictions. In particular, shares may not be offered or sold, directly or indirectly, in the United States or to US Persons, as is more fully described in the Funds’ prospectus. Further details may be obtained from the Funds’ distributor.
AllianceBernstein–Global Equity Blend Portfolio Investment Risks. Investment in the Fund entails certain risks. Investment returns and principal value of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund is meant as a vehicle for diversification and does not represent a complete investment program. Some of the principal risks of investing in the Fund include country risk, emerging markets risk, currency risk, illiquid assets risk, allocation risk, portfolio turnover risk, management risk, lack of operating history risk, derivatives risk, borrowing risk, taxation risk and equity securities risk. These and other risks are described in the Fund’s prospectus. Prospective investors should read the prospectus carefully and discuss risk and the fund’s fees and charges with their financial adviser to determine if the investment is appropriate for them.
An investor cannot invest directly in an index or average and they do not include sales charges or operating expenses associated with an investment in a mutual fund, which would reduce total returns.
A Standard & Poor’s Fund Research rating is not a recommendation to purchase, sell or hold any interest in a fund, in as much as it does not comment as to market price or suitability for a particular investor. While performance is one of many factors contributing to the rating, it, in itself, is no indication of future results. The results are based on current information furnished to Standard & Poor’s Fund Research by the fund or obtained from sources Standard & Poor's Research considers reliable.
AllianceBernstein (Luxembourg) S.A. is the management company of the AllianceBernstein – Global Equity Blend Portfolio and has appointed AllianceBernstein (Singapore) Ltd. (Company Registration No. 199703364C) as its agent for service of process and as its Singapore representative.
These materials are prepared in the English language and provided only upon request to certain authorized financial representatives.
