Multi-Asset Solutions Building Optimal Portfolios for Income Generation and Capital Appreciation
For Financial Representatives’ General Information only. Not for inspection by, distribution or quotation to the general public. This document reflects the
views of AllianceBernstein and sources believed by AllianceBernstein L.P. to be reliable as of the dates cited. No representation or warranty is made concerning the
accuracy of cited data. Nor is there any guarantee that any projection, forecast or opinion will be realized. The views expressed may change at any time. References to
stocks, securities or investments should not be considered recommendations to buy or sell. The value of investments, and the income from them, can fall as well as
rise and you may not get back the original amount invested. Past performance is not a guide to future performance. The value of overseas securities will be subject to
exchange-rate fluctuations. Under no circumstances should this information be construed as investment advice nor should it be construed as sales or marketing
material for any financial instrument, product or service sponsored or provided by AllianceBernstein or its affiliates or agents.
AllianceBernstein Dynamic Asset Allocation Portfolio Team Member
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
AllianceBernstein Multi-Asset: Offering a Range of Integrated Solutions
1
Glidepath
Strategies
Asset Allocation
Strategies
Targeted
Exposures
Design and manage strategic
glidepaths for retirement,
education and pension
markets
Design and actively manage
market exposures to generate
unique client outcomes
Build portfolios that access
unique market index and factor
exposures
CRS
Lifetime Income
Retirement Strategies
Education Strategies
DAA
Real Asset
Wealth Strategies
Dynamic All Market
Market Indexes
Custom Indexes
Factor Portfolios
Market Neutral
Custom target-date
manager for three of the
15 largest US DC plans*
First to offer multi-insurer
secure lifetime income
solution
One of the largest 529
plan managers with over
$7 billion in assets**
$45 billion in assets
covered by DAA
Private Asset Management
award for Innovation in
DAA, 2012†
Highly regarded Real
Asset research
30 years of experience
managing index strategies
Broad range of enhanced
and custom solutions
Deep capabilities in
managing custom and
traditional portfolios for
insurers, with more than $27
billion in AUM
As of December 31, 2013
*Measured by assets under management; according to Pensions & Investments
**Fifth largest 529 plan in the US according to Strategic Insight, 2Q:2013 †2012 Private Asset Management award for ‘Private Client Investment Platform—Innovation’
Source: Alliance Bernstein
Our
Solutions
What We Do
Our
Experience
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
The Problem: Sourcing Income and Defensive Assets in a Low Yield Environment
2
0
2
4
6
8
10
12
14
16
18
00 12 25 37 50 63 75 88 00 13
Pe
rce
nt
Treasury Returns when Equities Fall
5% or More When Has Diversification Been Needed
10-Year US Treasury Yields:
1900–2013
Average
(1982–2013)
As of December 31, 2013
Notes: Bond returns are excess of cash and annualized for five year zero coupon bonds when the S&P 500 falls by 5% or more in a calendar month. Hypothetical scenario reflects yields falling
from their levels on April 31, 2013 to their July 2012 lows over one year.
Source: Barclays, Bloomberg, Federal Reserve and AllianceBernstein
Historical Scenario as
of April 2013:
Yields return to July
2012 Lows
9%
2%
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Source: Federal Reserve, Schiller, S&P and AllianceBernstein
AllianceBernstein
Dividend Yields vs. Bond Yields 1900–2013
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
*As of March 10, 2014
Source: Bloomberg, BLS, FactSet, S&P, US Treasury and AllianceBernstein
Equities: Real Yield and Capital Appreciation
4
5.7% 4.2%
S&P 500 DividendGrowth
Inflation Rate
1972–2012
Annual S&P 500 Dividend Growth vs.
Inflation
1.9%
2.8%
Dividend Yield Bond Yield
S&P 500 Dividend Yield vs. 10-Year
Treasury Yield Current Yields*
2.4
4.4 6.8
2.1
5.1 7.2 5.8
3.2 9.0
GlobalSov.
Bonds
EquityRisk
Premium
GlobalStocks
GlobalSov.
Bonds
EquityRisk
Premium
GlobalStocks
GlobalSov.
Bonds
EquityRisk
Premium
GlobalStocks
Median Annualized Growth Rates: 10-Year Outlook (Percent)
As of December 31, 2013 As of September 30, 2013 Normal
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
0
200
400
600
800
1,000
98 01 04 07 10 13U
SD
Bill
ions (
Annualiz
ed)
Dividends Buybacks
0
2
4
6
8
10
53 63 73 83 93 03 13
Perc
ent
Strong Cash Flow and Capital Discipline Lead to Shareholder-Friendly Actions
5
Left chart through November 30, 2013; right chart through December 31, 2013
*US large-cap stocks excluding financials and utilities; cap-weighted data. Free-cash-flow yield is cash produced by recurring operations over the trailing four quarters divided by market cap.
An investor cannot invest directly in an index and its performance does not reflect the performance of any AllianceBernstein portfolio. The unmanaged index does not reflect fees and expenses
associated with the active management of a portfolio.
Source: Empirical Research Partners Analysis, S&P, Yardeni Research, company reports and AllianceBernstein
S&P 500 Index Dividends and
Buybacks Have Been Improving
US Equity Free-Cash-Flow Yields*
Still Well Above Average
Average
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Dividend Payments Have Room to Rise Despite Recent Increases
6
6 Left chart as of November 30, 2013; Right chart as of September 30, 2013
*Based on trailing 12 month dividend payments.
Source: Bloomberg, Bureau of Economic Analysis, Deutsche Bank, Haver Analytics, S&P and AllianceBernstein
20
30
40
50
60
70
1951196119711981199120012011
S&P 500 Cash as Percent
of Total Assets
S&P 500 Dividend Pay-out Ratio*
2
4
6
8
10
12
1982 1987 1992 1997 2002 2007 2012
Pe
rce
nt
Average
Pe
rce
nt
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Attractive Income Opportunities Across Asset Classes, But…
7
5.3%
4.1%
3.6%
Barclays US High YieldIndex
MSCI World High DividendYield Index
FTSE EPRA/NAREITGlobal Index
As of March 10, 2014
Source: Barclays, Dow Jones, FTSE NAREIT and AllianceBernstein
Current Yields
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
…Watch Out for the Steamroller!
8
5.3%
4.1%
3.6%
Barclays USHigh Yield Index
MSCI WorldHigh Dividend
Yield Index
FTSEEPRA/NAREITGlobal Index
As of March 10, 2014
Source: Barclays, Dow Jones, FTSE NAREIT and AllianceBernstein
Current Yields
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
High DY Equities REITs
HY Credit
Equities
Sovereigns
Commodities Gold
High Income Asset Classes Have High Equity Beta…
9
Higher
Lower
Higher Lower
High Income
Asset Classes
Have High Equity Risk
Past performance does not guarantee future results.
As of February 28, 2014
*Equity High DY is the MSCI World Index High Dividend. HY Credit is Barclays Global High Yield. REITs are based on the FTSE EPRA/NAREIT. All Income and Beta data based on
AllianceBernstein calculations since Jan 1990, except for the following: MSCI World Index High Dividend since Jul 1995. Please read “Note on Simulated Results” in back of presentation for
important additional information.
Source: Barclays, MSCI, DJUBS, FTSE, Bloomberg and AllianceBernstein; see Disclosures and Important Information.
Income
Beta
From January 1990-February 2014
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
(50)%
(40)%
(30)%
(20)%
(10)%
0%
1990 1993 1996 1999 2002 2005 2008 2011
…and Experience Significant Drawdowns in Bear Markets
10
Past performance does not guarantee future results.
As of February 28, 2014
*Equity High DY is the MSCI World Index High Dividend. HY Credit is Barclays Global High Yield. Return data since Jan 1990. Please read “Note on Simulated Results” in back of presentation for
important additional information.
Source: Barclays, MSCI, DJUBS, FTSE, Bloomberg and AllianceBernstein; see Disclosures and Important Information.
1990 (9.0)%
2002 (7.1)%
2008 (35.7)%
Historical Drawdowns 50% High Dividend Equities, 50% High Yield Credit
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
High DY Equities REITs
HY Credit
Equity L/S High DY
FX Carry FI Carry
Equities
Sovereigns FX Value
FI Value
FX Momentum FI Momentum
Commodities
Gold
Alternative Income Sources Diversify the Equity Risk…
11
High Income
Low Beta
Diversifiers
Higher
Lower
Income
Higher Lower
Beta
Past performance does not guarantee future results.
As of February 28, 2014. *Equity High DY is the MSCI World Index High Dividend. HY Credit is Barclays Global High Yield. REITs are based on the FTSE EPRA/NAREIT. Long/short strategies are
proprietary AllianceBernstein strategies. All Income and Beta data based on AllianceBernstein calculations since Jan 1990, except for the following: MSCI World Index High Dividend since Jul
1995, Equity Long-Short High Dividend since Jan 2003. Please read “Note on Simulated Results” in back of presentation for important additional information. Bonds are Barclays Global Treasury
adjusted to market cap and duration of the Barclays Global Aggregate. Commodities are based on DJUBS and AB data. Gold is based on DJUBS and AB data.
Source: Barclays, MSCI, DJUBS, FTSE, Bloomberg and AllianceBernstein; see Disclosures and Important Information.
From January 1990-February 2014
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Equity
High DY REITs
HY
Credit
IG
Credit
Equity
L/S High
DY
FX Carry FI Carry
Equity High DY 1.00 0.69 0.69 0.35 0.03 0.50 (0.15)
REITs 1.00 0.54 0.40 0.10 0.33 (0.07)
HY Credit 1.00 0.59 (0.01) 0.41 (0.04)
IG Credit 1.00 0.05 0.30 0.02
Equity L/S High DY 1.00 (0.07) 0.16
FX Carry 1.00 (0.04)
FI Carry 1.00
…and Are Complementary to Other Income Sources
12
Traditional Income Asset
Classes
Diversifying Income
Sources
Past performance does not guarantee future results.
As of February 28, 2014
*Equity High DY is the MSCI World Index High Dividend. HY Credit is Barclays Global High Yield. IG Credit is Barclays Global Agg Corp. REITs are based on the FTSE EPRA/NAREIT. Long/short
strategies are proprietary AB strategies. All Income and Beta data based on AB calculations since Jan 1990, except for the following: MSCI World Index High Dividend since Jul 1995, IG Credit
since Jan 1999, Equity Long-Short High Dividend since Jan 2003. Please read “Note on Simulated Results” in back of presentation for important additional information.
Source: Barclays, MSCI, DJUBS, FTSE, Bloomberg and AllianceBernstein; see Disclosures and Important Information.
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Income Sources Have Performance Cycles
13
As of December 31, 2013
Equity High DY is the MSCI World Index High Dividend. HY Credit is Barclays Global High Yield. IG Credit is Barclays Global Agg Corp. REITs are based on the FTSE EPRA/NAREIT. FX Carry is
the Societe Generale SGI FX-G10 Carry Trade Index. FI Carry is the SGI BOSS USD 3% Index. Volatility Premium is the SGI Vol Premium 3 Index.
Source: Barclays, MSCI, Societe Generale, FTSE and AllianceBernstein
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Dynamic Asset Allocation: Research and Management
14
$45
Strategic
As of December 31, 2013
Source: AllianceBernstein
AllianceBernstein has 40+ years of
experience in managing multi-asset
solutions. $45 billion of assets are covered
by Dynamic Strategies including both
traditional balanced and risk parity
approaches
A team of senior investment professionals
makes judgments by combining the output
from a thoroughly researched and
documented quantitative toolset with
fundamental insights
Research Foundation Multi-Assets Under Management
USD Billions
$73
Dynamic
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Risk Model: Summary
Systematic forecasts that include both volatility and correlations
Highly adaptive model based on realized returns to capture rapidly changing
market environments
Wide array of asset classes covered
15
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Our Approach Weighs Short-, Intermediate-
and Long-Term Experiences…
…in an Effort to Form More Accurate Risk
Forecasts
December 31, 1969 – June 30, 2013. Notes: High and low forecast risk environments represent the top and bottom quintile of forecast risk across asset classes. For each quintile, the difference
between normal and median future realized risk is shown. Short Term Risk: Exponential decay with a three-week half-life, Intermediate Term Risk: Exponential decay with a six-month half-life,
Long Term Risk: Full-history average. Stocks are represented by MSCI World Index and Bonds by Barclays Global Treasury Index.
Source: Barclays, MSCI and AllianceBernstein
Short-Term
Realized
Rapidly captures
changes in risk
environment
Intermediate-
Term
Realized
Reflects current
risk regime
Long-Term
Realized
Maintains long
term perspective
11% 12%
20% 18%
Stocks
Forecast Actual
Lowest-Volatility
Environment
Highest-Volatility
Environment
3% 3%
6% 6%
Forecast Actual
Bonds
Our Research: Adaptive Risk Forecasts
16
Forecast Actual Forecast Actual
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Our Research: Adaptive Correlation Forecasts
17
As of December 31, 2009
Source: Barclays Capital, Global Financial Data, MSCI and AllianceBernstein; see Disclosures and Important Information.
0.39
0.29
(0.20)
(0.33)
Lowest-Correlation
Environment
Highest-Correlation
Environment
Correlation
One-Year Forecasts 1970–2009
Global Stock-Bond Correlation
Forecasts
Forecast Realized
(0.60)
(0.40)
(0.20)
0.00
0.20
0.40
0.60
70 78 86 94 02 09
Corr
ela
tion
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Diversification and Dynamic Asset Allocation Smooth the Ride
18
(26.2)%
(43.9)% (48.9)%
13.7% 9.3% 12.8%
5.2% 6.5%
Barclays USHigh Yield
Index
MSCI WorldHigh Dividend
Yield Index
FTSEEPRA/NAREITGlobal Index
Barclays USTreasury Index
BarclaysGlobal
SovereignIndex
Equity L/S HighTotal Yield
Equity L/SMomentum
Dynamic AssetAllocation
As of December 31, 2013
USD Returns
Quality Equity Long/Short Factor Fund is the simulated performance of AllianceBernstein’s proprietary Capital Use Factor and Momentum is AllianceBernstein’s proprietary Momentum Factor
Source: Barclays, Dow Jones, FTSE NAREIT, MSCI and AllianceBernstein
Attractive
Income
Asset Class
Diversification
Strategy and Risk
Management
Diversification
Calendar Year Returns 2008
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
AllianceBernstein Global Multi-Asset Income: The Framework
19
Equity
Income
Strategies
Alternatives
Fixed
Income
Strategies
AllianceBernstein Global Multi-Asset Income
Strategic Asset Allocation: Provide stable
income across asset classes while adding
diversifiers to provide a more sustainable
income experience
Security Selection: Access best ideas
across asset classes through the firm’s
fundamentally driven investment teams
Dynamic Allocation/Risk Management:
Active allocation process that shifts
exposures across strategies to mitigate
drawdowns in adverse markets and
responding to changes in correlations of the
component strategies
Long-Term Risk Allocations Sources of Value Added
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Global Multi Asset Income: Indicative Asset Class Allocations
20
Indicative asset class allocations vs. 50% equities/50% high yield base
0%
25%
50%
75%
100%
2000 2002 2004 2006 2008 2010 2012
Equities REITs Bonds HY
Past performance does not guarantee future results.
January 2000 through December 2013
The allocations depicted are hypothetical and are derived from a back-tested simulation. Please read “Note on Simulated Results” in back of presentation for important additional information.
*Shows Indicative Asset Class Allocations vs .50% Equities / 50% High Yield base through February 28, 2014
Source: Barclays, FTSE NAREIT, Global Financial Data, MSCI and AllianceBernstein; see Disclosures and Important Information.
Asset Class Allocations*
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
AllianceBernstein Global Multi-Asset Income: Simulated Returns Jan 1990–Dec 2013
21
50/50 Benchmark High Income 50/50 Benchmark Global Multi-Asset Income
Data Jan 1, 1990 to Dec 31, 2013. Global Multi-Asset Income is a hypothetical illustration based on simulated return data. Normal Benchmark is 50% MSCI World and 50% Barclays Global
Aggregate Index. High Income Benchmark is 50% MSCI World High Dividend and 50% Barclays Global High Yield Index. Please read “Note on Simulated Results” in back of presentation for
important additional information.
*Yield numbers based on average since June 1, 1997. Yield data in brackets based on average over 3 years ending Dec 31, 2013. All yield numbers based on exact portfolio yields over those last
3 years, and proxied by benchmarks before as follows: Equity Yield based on MSCI World Yield since Jan 1995, prior to 1995 it is estimated as the median DY of MSCI World constituents from
stock level data. High dividend equity yield numbers based on the MSCI World High Dividend benchmark since July 2008, prior to which it is estimated as the median Dividend Yield of the highest
quintile of companies in the MSCI World from stock level data. Fixed Income yield based on the Barclays Global Agg since Feb 2004, prior to which it is proxied as a premium over Global
Sovereigns. Fixed Income High Yield data based on the Barclays Global High Yield since June 1997
Source: Barclays, MSCI and AllianceBernstein ; see Disclosures and Important Information.
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Global Multi Asset Income: Indicative Yield Potential
22
0%
4%
8%
12%
16%
1997 1999 2001 2003 2005 2007 2009 2011 2013
Data June 1, 1997 to December 31, 2013. Global Multi-Asset Income is a hypothetical illustration based on simulated return data. Please read “Note on Simulated Results” in back of presentation
for important additional information.
Yield captures the yield potential of both the equity and fixed income components of the simulated portfolio based on estimated market conditions at the time. Actual portfolio yield numbers might
differ due to active management, managed distribution or other portfolio decisions.
Source:Alliance Bernstein see Disclosures and Important Information.
4% on Average
GMAI Indicative Yield
Potential
Global
Sovereigns
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Global Multi Asset Income: Indicative Cumulative Income Earned
Global Multi-Asset Income is a hypothetical illustration based on simulated return data. Please read “Note on Simulated Results” in back of presentation for important additional information.
Yield captures the yield potential of both the equity and fixed income components of the simulated portfolio based on estimated market conditions at the time. Actual portfolio yield numbers might
differ due to active management, managed distribution or other portfolio decisions.
Source: Barclays, MSCI and AllianceBernstein; see Disclosures and Important Information.
Indicative Cumulative Income Earned On $100,000 Invested in January 1990
50/50
Benchmark
GMAI
50/50 Income
Benchmark
$
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
AllianceBernstein Global Multi-Asset Income
24
Global approach that seeks income across all asset classes and
geographies
Utilizes proven investment strategies that deliver high levels of
sustainable income
Dynamic allocation and integrated risk management mitigates drawdowns
in stressful periods
High distribution provides meaningful income in all market environments
Seeks to deliver strong risk-adjusted income and returns
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Why Multi-Asset Income?
25
Attractive income can be sourced from a variety of asset classes and
strategies, but…
…because income strategies are short volatility they can become correlated
to the downside. Thoughtful diversification provides more consistent returns
through changing market environments
Dynamic asset allocation to and within different asset classes and
geographies can mitigate drawdowns in stressful periods
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Six Non-Bonds: Equity & Multi-Asset Income Funds from AllianceBernstein
26
Asia Pacific Equity Income Global Equity Income Global Real Estate Securities
Asset Class Asia Pacific ex-Japan Equities Global Equities Including EM Real estate investment trusts (REITs) and real
estate-related operating companies (REOCs)
Benchmark MSCI AC Asia Pacific ex-Japan Index MSCI All Country World Index FTSE/EPRA NAREIT Developed Index
Key Characteristics
Seeks current income and capital
appreciation through investment in a
value-oriented portfolio of dividend-
paying common stocks
Uses disciplined bottom-up research to
identify companies with attractive free
cash flow available for return to
shareholders
Seeks current income and capital
appreciation through investment in a
value-oriented portfolio of dividend-
paying common stocks
Uses disciplined bottom-up research to
identify companies with attractive free
cash flow available for return to
shareholders
Seeks premium returns by buying REITs
and REOCs priced below their long term
earnings power.
Uses rigorous fundamental and quantitative
investment research to identify such
companies and construct a portfolio that
seeks to maximize investment returns on a
measured risk-adjusted basis.
Reasons to Own
Provides attractive dividend income
Seeks long-term outperformance with
lower volatility than the Asia Pacific
equity market
Managed by an experienced
investment team with a long history of
success
Local research team provides “on the
ground” perspective and insight
Supplemented by the broader research
resources of a global firm
Provides attractive dividend income
Seeks long-term outperformance with
lower volatility than the global equity
market
Managed by an experienced investment
team with a long history of success
Leverages insights and best ideas from
research teams around the world
Diversifying to traditional equity portfolio
Superior long-term return potential but
highly sensitive to market movements and
volatility
Strategy AUM & Inception Date
(mil. / USD)
$5.3 mil
12 Sep 2013
$71.7 mil
31 Oct 2011
$136.7 mil
30 Sept 1996
Lux Fund AUM & Inception Date
(mil. / USD)
$5.3 mil
12 Sep 2013
$5.1 mil
13 Feb 2014
$58.7 mil
28 Feb 1997
As of 31 March 2014, AUM for Global REIT as of December 31, 2013
Source: AllianceBernstein
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public 27
Emerging Multi-Asset (EMMA) Global Multi Asset Income (GMAI) Asia Multi-Asset Income (AMAI)
Asset Class Emerging market Equities, Emerging market
Bonds
Global High Income Equities and REITs, Global
High Yield Bonds, Long Only Factor Strategies
Asia Equities & REITs, Asia Bonds, Asia
Currencies
Investment Objective /
Benchmark
EM equity-like returns with lower volatility than BM
MSCI Emerging Markets index
5-6% Income with Growth
MSCI World High Dividend/Barclays Capital
Global High Yield
6% Income with Capital Appreciation
50% MSCI APxJ/ 50% HSBC Local Bonds
Key Characteristics • Capture returns from the emerging markets for
investors without increasing their overall
portfolio risk
• Active asset allocation protect against extreme
downside risk in emerging-market equities with
bonds
• Active Currency Management Seeks to
Capture More Insights
• Derivative-lite version of GMAI Plus
• Invest in income-producing equity and bond
securities across all geographies
• Long only factor strategies for diversification
• Dynamically adjust allocations using a proven
process with very limited derivatives
• Unconstrained investment in Asia equities,
bonds and currencies
• Flexible asset and currency allocation
approach emphasizing long-term fundamentals
while adjusting expectations based on short-
term market environment
• Sustainable income through TAA + High
yielding, high quality and attractively valued
equities + FI barbell strategy in high quality IG
credit and good risk-adjusted currency carry
Reasons to own • Benefit from a broader investment universe
across equities, debt and currencies
• Seek opportunities across capital structure –
not a bolt-on strategy
• Protect against extreme downside risk in
volatile emerging-market equities
• Experienced team and good long term track
record in EM equities and EM bonds
• Utilizes proven investment strategies that
deliver high levels of sustainable income
• Uncorrelated source of alpha with better
diversification
• Dynamic allocation and integrated risk
management mitigates drawdowns in stressful
periods
• 6% distribution provides meaningful income in
all market environments
• Thoughtful delivery of sustainable high income
in both Asia equities and Asia bonds to provide
flexibility, income and liquidity
• Dynamic allocation across asset classes and
currencies mitigates drawdowns in stressful
periods
• Unites three experienced teams, proven
investment strategies, integrated quantitative
and fundamental research into in a single core
solution
Strategy AUM & inception
date (mil. / USD)*
US$182m
31Aug2011 (US Fund)
30Jun2011 (Institutional)
Expected 2014 US$33m seed (16Jan2014)
16Jan 2014
Lux fund AUM & inception
date (mil. / USD)*
US$145m
1Jun2011
Expected 2014 US$33m seed (16Jan2014)
16Jan 2014
As of 31 December 2013 . AUM a s of 30September 2013 Source: AllianceBernstein
Six Non-Bonds: Equity & Multi-Asset Income Funds from AllianceBernstein
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Region: Global
Division: Global
Name: Divider Page
Use: To separate sections within a presentation
Other:
28
Appendix
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Forecasting Risk: Volatility Levels Are “Sticky,” Hence Predictable
29
Historical data for illustrative purposes.
As of June 30, 2009
Each observation is ranked by past volatility at the end of the month and sorted by quintile (in-sample) except currencies, which are sorted by tercile. Past volatility is an exponentially weighted
average using daily data with a three-week half-life (5% decay per day). All metrics are annualized. Currency returns are returns of currency forwards (long forwards and short the US dollar).
Source: Barclays, FTSE NAREIT, Global Financial Data and AllianceBernstein; see Disclosures and Important Information.
Global Fixed Income: 1970–2009 S&P 500: 1929–2009
Commodities: 1970–2009 Currencies: 1974–2009
0
5
10
0 3 6 9 12
Months Forward
Perc
ent
0
5
10
15
20
25
0 3 6 9 12
Months ForwardP
erc
ent
4
8
12
16
0 3 6 9 12
Months Forward
Perc
ent
Annualized Volatility: Top and Bottom Quintiles
Past Realized Volatility Forward Volatility
0
20
40
0 3 6 9 12
Months Forward
Perc
ent
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Notes on Simulation Results
30
The portfolios and their performance are hypothetical and do not represent the investment performance or the actual
accounts of any investors. The securities in these hypothetical portfolios were selected with the full benefit of hindsight,
after their performance over the period shown was known. The results achieved in our simulations do not guarantee
future investment results.
The model performance information in this presentation is based on the back-tested performance of hypothetical investments over
the time periods indicated. “Back-testing” is a process of objectively simulating historical investment returns by applying a set of
rules for buying and selling securities, and other assets, backward in time, testing those rules, and hypothetically investing in the
securities and other assets that are chosen. Back-testing is designed to allow investors to understand and evaluate certain
strategies by seeing how they would have performed hypothetically during certain time periods. It is possible that the markets will
perform better or worse than shown in the projections; that the actual results of an investor who invests in the manner these
projections suggest will be better or worse than the projections; and that an investor may lose money by investing in the manner the
projections suggest.
The projections assume the reinvestment of dividends and include transaction costs of 0.6% for purchases and sales of equities
and bonds and 1.0% for real estate investment trusts (REITs). For equity and bond derivatives, we assume total one-way
transaction costs and cost of financing of 0.5%. We assume no deduction for advisory fees, and that assets are allocated in the
manner the projections suggest for nearly 40 years and are rebalanced monthly.
Although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness
cannot be guaranteed. While back-testing results reflect the rigorous application of the investment strategy selected, back-tested
results have certain limitations and should not be considered indicative of future results. In particular, they do not reflect actual
trading in an account, so there is no guarantee that an actual account would have achieved the results shown. Back-tested results
also assume that asset allocations would not have changed over time and in response to market conditions, which might have
occurred if an actual account had been managed during the time period shown. AllianceBernstein L.P. may have a different
investment perspective and maintain different asset allocation or other recommendations from those shown here.
AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
A Word About Risk
31
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 down as well as up and investors may not get back the full amount invested. The sale of
AllianceBernstein funds 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.com For financial representative use only. Not for inspection by, distribution or quotation to the general public
Disclosures and Important Information
32
Past performance is not a guide to future performance.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount invested.
The value of non-domestic securities may be subject to exchange-rate fluctuations.
The views and opinions expressed in this presentation are based on AllianceBernstein’s internal forecasts and should not be relied
upon as an indication of future market performance or any guarantee of return from an investment in any AllianceBernstein services.
Disclosure on Security Examples
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.
AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein
