Transcript Document

AllianceBernstein
Global Equity Blend Portfolio
Bernstein Value Equities is referred to as Bernstein herein; Alliance Growth Equities is referred to as Alliance herein; AllianceBernstein Blend Strategies is referred to as AllianceBernstein herein;
This presentation booklet has been provided to you for use in a private and confidential meeting to discuss a potential or existing investment advisory relationship.
It is neither an advertisement nor is it intended for public use or distribution beyond our private meeting. These materials have been provided to you as general
background information on AllianceBernstein and do not constitute an offer to provide any particular service.
AllianceBernstein Hong Kong Limited
Our Mission
 To have more knowledge and use knowledge better than any investment firm in the world
 To use and share knowledge to help our clients achieve investment success and peace of
mind
 To place our clients’ interests first and foremost
AllianceBernstein
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As of September 30, 2006
*Total assets under management of AllianceBernstein L.P.
AllianceBernstein
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A Global Platform: 18 Cities
Number of Analysts
Buy-Side
Growth
Fixed
Income
Value
MultiAsset*
SellSide
Total
Fundamental
70
57
47
17
51
242
Quantitative
8
20
10
25
6
69
Economists
0
0
8
0
0
8
78
77
65
42
57
319
Total Analysts
Moscow
Minneapolis Montréal
San Francisco
Chicago
London
New York
Tokyo
Cleveland
Shanghai
Hong Kong
Taipei
Mumbai (Bombay)
Singapore
Investment Management
and/or Research Office
Joint Venture Relationship
São Paulo*
Sydney
Cape Town
Melbourne
Wellington
As of September 30, 2006
*Investment management and marketing office
AllianceBernstein
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Recognized Globally as an Industry Leader
AllianceBernstein
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Global Equity Blend Portfolio
AllianceBernstein Blend Strategies
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AllianceBernstein: Two Clear Investment Philosophies
Growth Investing
Goal: Find
underappreciated
growth potential
Long-Term
Earnings
Power
Research question:
Will growth outpace
expectations?
Earnings
Growth
Accelerates
Earnings
Growth
Decelerates
Corrective
Strategies
Profits &
Stock Decline
Value Investing
Goal: Buy out of favor
bargains
Research question:
Will depressed
earnings recover?
As of 30 September 2006
Source: AllianceBernstein
AllianceBernstein Blend Strategies
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AllianceBernstein Global Equity Blend Portfolio: Active Core Strategy
Bernstein
Global
Value
100 to 150 Stocks
50%
AllianceBernstein
Funds Global Equity
Blend Portfolio
50%
200 to 300 Stocks
Alliance
Global
Growth
100 to 150 Stocks
 Builds on history of strong returns in growth and value
 Mitigates style risk through negatively correlated premiums
As of 30 September 2006
Source: AllianceBernstein
AllianceBernstein Blend Strategies
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Global Equity Blend Portfolio
 Domicile: Luxembourg
 Portfolio Inception Date: 19 December 2003
 Fiscal Year End: August 31
 Net Assets: $2,397.60 million (as of 30 September 2006)
 Base Currency: U.S. Dollar
 Benchmark: MSCI World Net Index
 Sales Charges, Fees and Expenses (Class S1)*:
 Initial Sales Charge: None
 Management Fee: 0.70%**
 Distribution Fee: None
 Contingent Deferred Sales Charge: None
 Other Administration Cost: 0.15%
As of 30 September 2006
*For further details on sales charges, fees and expenses, please refer to “How to Purchase Shares” and “Additional Information - Fees and Expenses” in Section II of the AllianceBernstein
Prospectus. The Management Company has voluntarily undertaken, until the Management Company on behalf of the Fund notifies Shareholders to the contrary, that if, in any fiscal year, the
aggregate fees and expenses with respect to the following share classes of the Portfolio (including any management fee and all other fees and expenses set out in “Additional Information – Fees
and Expenses” in Section II, but exclusive of taxes, brokerage, interest on borrowings and any other expenses) exceed the following percentages of the Portfolio’s average Net Asset Value for the
fiscal year attributable to the Portfolio’s class A, B, C, I, S and S1 shares, respectively: 2.10%, 3.10%, 2.30%, 1.30%, 0.15% and 0.85%, the Fund may deduct from the payment to be made to the
Management Company, or the Management Company will otherwise bear, such excess fees and expenses.
**As an annual percentage of average daily Net Asset Value. For further details on the management fee, please refer to “Additional Information — Fees and Expenses” in Section II of the
AllianceBernstein Fund Prospectus; Source: AllianceBernstein
AllianceBernstein Blend Strategies
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Global Equity Blend Portfolio: Performance Summary
Average Annual Returns
Class S1 Shares (USD)
AllianceBernstein –
Global Equity Blend
MSCI World Index
13.8%
4.0%
14.2%
15.4%
13.7%
4.5%
3 Months
1 Year
Since Inception*
Past performance does not guarantee future results.
As of 30 September 2006
*Class S1 shares inception date 19 December 2003
Total 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 and AllianceBernstein
AllianceBernstein Blend Strategies
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Market Outlook
AllianceBernstein Blend Strategies
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AllianceBernstein Blend Strategies
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AllianceBernstein Blend Strategies
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AllianceBernstein Blend Strategies
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Growth Stocks Trading at Compelling Valuations: Global
World Sector P/E’s Relative to History: 1995–2006*
 Low and compressed valuations reveal the
market’s lack of differentiation between growth
rates across sectors
Ratio (×)
60
50
40
30
20
10
19
19
14
12
19
Highest
22
18
14
15
17 Current
Lowest
Utilities
Telecom
Services
Materials
Technology
Industrials
Healthcare
Financials
Consumer
Discretionary
Consumer
Staples
Energy &
Nat. Resource
0
Growth vs. Value Relative P/E Ratios: Global
 The premium being paid for growth stocks is
approaching long-term lows globally, based on
relative price/earnings multiples
Global Growth vs. Value**
3.5
Ratio (×)
3.0
Current valuations do not guarantee future results.
As of or through 30 September 2006
*Monthly MSCI World GICS sector P/E average calculated on a monthly basis excluding
negative P/FE values
**Relative Price to Forward Earnings. Extended MSCI World universe. Growth and value
segments were defined according to our proprietary growth model, which is based on sales
growth, stability of sales growth and valuation multiples, among other factors.
Source: FactSet, MSCI and AllianceBernstein
Value Opportunity
2.5
2.0
Average
1.5
Growth Opportunity
1.0
0.5
88
91
94
97
00
03
06
AllianceBernstein Blend Strategies
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We Have Responded to Changing Opportunities
Premium/Discount to Market by Capitalization*
Price/Earnings
Very Large-Cap
 We have increased our exposure to large-cap
stocks, which currently have attractive valuation
and profitability characteristics
Return on Equity
Mid-Cap
Very Large-Cap
Mid-Cap
9.8%
4.9%
2.8% 3.3%
(1.1)% (1.6)%
(6.0)%
(9.7)%
Long-Term Average
September 2006
Tracking Error**
 As a result, the portfolio is more diversified than
usual and the risk is lower
Current valuations do not guarantee future results.
Through 30 September 2006
*Long-term average is from January 1970 through September 2006. Very large-cap stocks are
defined as those with an index weight of more than 25 b.p. in the MSCI World Index. Mid-cap
stocks are defined as those with an index weight between 1.5 b.p. and 5 b.p. Size class values
are cap-weighted averages compared to a cap-weighted global average. Negative earnings
per share are treated as zero.
**Two-year rolling ex-post tracking error of composite Global Value and Global Strategic Value
accounts relative to the MSCI World Index
Source: MSCI and AllianceBernstein
(%)
16
14
12
10
8
6
4
2
0
Global
Strategic
Value
Global Value
97
98
99
00
01
02
03
04
05
06
AllianceBernstein Blend Strategies
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AllianceBernstein Global Equity Blend: Style Allocation Remains Balanced
Overall
Value
Growth
50.1%
49.9%
11.3%
Overlap
Citigroup
Credit Suisse
General Electric
Toyota Motor
JPMorgan Chase
As of 30 June 2006
Based on a representative Global Equity Blend account managed to MSCI World
Source: AllianceBernstein; see Disclosure on Stock Examples.
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A Winning Balance of Growth and Price
EPS Growth
Price/Earnings
2007E/2006E Annualized
2007E
15.7%
13.8×
12.6%
11.5%
Global Growth Global Equity MSCI World
Holdings
Blend
Portfolio
11.2×
12.3×
Global Value Global Equity MSCI World
Blend
Holdings
Portfolio
As of 30 September 2006
Source: I/B/E/S, MSCI and AllianceBernstein
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Appendix
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Blend Moderates Sector Risk of Components: Sector Weights
Active Weights*
Value
Financials
9.8%
Energy
Information Technology
Consumer Staples
Healthcare
Industrials
Growth
1.6%
1.8%
(3.5)%
2.9%
(1.2)%
(0.3)%
(1.3)%
(5.8)%
(1.2)%
5.0%
0.4%
1.7%
(1.4)%
Blend
4.3%
0.3%
(0.7)%
0.0%
As of 30 September 2006
*versus MSCI World Index; Totals may not add due to rounding
Source: MSCI and AllianceBernstein
AllianceBernstein Blend Strategies
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Blend Moderates Sector Risk of Components: Region Weights
Active Weights*
Value
Emerging Markets
6.7%
Japan
1.9%
Europe
1.7%
(8.3)%
Blend
7.6%
8.3%
2.5%
Other Asia/Pacific
North America
Growth
1.7%
0.8%
(1.9)%
0.0%
(6.5)%
(2.2)%
1.9%
(3.3)%
As of 30 September 2006
*versus MSCI World Index; Totals may not add due to rounding
Source: MSCI and AllianceBernstein
AllianceBernstein Blend Strategies
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Global Equity Blend Portfolio: Portfolio Composition (as of 30 September 2006)
Sector Value
Sector Growth
Energy
Health Care
Other
Consumer
3%
Serv ices
Technology
Capital
9%
8%
Goods
Consumer
3%
Staples
Consumer Manufacturing
10%
6%
4%
Basic Industry
7%
Basic
14%
Industry
6%
Technology
Defense
3%
Energy
10%
Utililties
5%
7%
Health Care
Aerospace &
Other
3%
Finance
35%
Consumer
Staples
15%
7%
Finance
6%
Consumer Manufacturing
27%
Country Allocation
7%
5%
Capital Goods Consumer Services
Portfolio Composition
Growth Equity
50%
United States
46%
Japan
11%
France
5%
Sw itzerland
7%
Other
18%
Germany
4%
As of 30 September 2006
Source: AllianceBernstein
United
Kingdom
9%
Value Equity
50%
AllianceBernstein Blend Strategies
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Biographies
Song, Li
Vice President and Senior Portfolio Manager—Blend Strategies
Mr. Li is a Vice President and Senior Portfolio Manager for the Blend Strategies team, based in Hong Kong. He joined AllianceBernstein in
2006 with 15 years of investment experience. Previously, he worked for two years at Deutsche Asset Management and for six years at
Citigroup Asset Management as a senior quantitative analyst/portfolio manager across various domestic and international equity products.
Prior to that, he worked for four years at the University of Minnesota as an Assistant to the Treasurer managing endowment and pension
funds. Mr. Li started his career as a venture capital analyst in 1989. He has a MBA in Finance from the University of Minnesota and both MS
and BS in EE from the South China University of Technology. CFA Charterholder 1997. Location: Hong Kong
June Wong
Managing Director, Head of Institutions, North Asia
Ms. Wong joined AllianceBernstein in 2004 and is head of the institutional business for North Asia.
Prior to joining AllianceBernstein, Ms. Wong was Director and Head of Business Development at HSBC Asset Management in Hong Kong,
where she led the charge of new business generation for both the institutional and retail segments for Hong Kong, China offshore, Taiwan
offshore and Korea offshore. Ms. Wong also served as an advisor to the Hong Kong Government on the development of the Mandatory
Provident Fund scheme in Hong Kong during her tenure at HSBC. Before HSBC, Ms. Wong was Head of Asset Consulting Services at
Towers Perrin Hong Kong between 1993-1994. Prior to that, she spent four years in Australia working as an actuarial/fixed income analyst
for GIO. Ms. Wong has a Bachelor of Economics degree from Macquarie University in Australia, majoring in actuarial studies. She is also a
fully qualified actuary as a Fellow of the Institute of Actuaries Australia. Location: Hong Kong
Max Wong
Client Relationship Manager, Institutions – North Asia
Mr. Wong joined the firm in 2005. He is responsible for supporting all client servicing and business development activities for the institutional
business in the North Asia region. Prior to joining the firm, he was a marketing manager in PCCW, the incumbent telecommunication operator
in Hong Kong, an organisation he joined as a management trainee in 2000. Mr. Wong earned a Bachelor of Engineering degree from The
Chinese University of Hong Kong in 2000. He has also passed all 3 levels of the CFA examinations and is eligible for CFA Charter upon
completion of the required work experience. Location: Hong Kong.
AllianceBernstein
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Notes on Global Equity Blend Simulation
The Global Equity Blend Simulation results were calculated by value-weighting the actual
composite returns of Alliance Global Research Growth and actual composite returns of Bernstein
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.
AllianceBernstein Blend Strategies
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Disclosure on Stock 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. Upon request, we will furnish a listing of all
investments made during the prior one-year period.
AllianceBernstein Blend Strategies
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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 April 2002, 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.
AllianceBernstein Blend Strategies
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A Word About Risk
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’ offering circulars. Further details may be obtained from the Funds’ distributor.
The information contained herein reflects, as of the date hereof, the views AllianceBernstein and sources
believed by AllianceBernstein to be reliable. No representation or warranty is made concerning the accuracy of
any data compiled herein. In addition, there can be no guarantee that any projection, forecast or opinion in
these materials will be realized. The views expressed herein may change at any time subsequent to the date of
issue hereof. These materials are provided for informational purposes only and under no circumstances may
any information contained herein be construed as investment advice. Neither may any information contained
herein be construed as any sales or marketing materials in respect of any financial instrument, product or service
sponsored or provided by AllianceBernstein or any affiliate or agent thereof.
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.
These materials are prepared in the English language and provided only upon request to certain authorized
financial representatives.
AllianceBernstein Blend Strategies
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