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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
AllianceBernstein.com Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield
Default
Inflation
Our View: A Delicate Balancing Act will Lead to Continued Volatility
33
Source: AllianceBernstein
WhichWay for
Governments?
Inaction
Growth Austerity
AllianceBernstein.com Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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
(×
)
AllianceBernstein.com Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
…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%
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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
EmphasizeShorter Duration
Implement Dynamic HedgingTo Manage Volatility
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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield 13
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
EmphasizeShorter Duration
Implement Dynamic HedgingTo Manage Volatility
Short Duration
High Yield Portfolio
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
Source: AllianceBernstein
Implement Dynamic Hedging to Manage Volatility
14
Focus on Higher
Credit Quality
EmphasizeShorter Duration
Implement Dynamic HedgingTo Manage Volatility
ShortDuration
High Yield Portfolio
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.com Low Volatility High Yield Low Volatility High Yield 15
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.com Low Volatility High Yield Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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
� $26 billion client assets under management in high yield assets*
� We have delivered consistent strong performance in our high yield portfolios:
� Our Global High Yield Portfolio and Global High Income composite are 1st quartile performers over the last 3, 5 and 10 years
� Our US High Yield composite performance is 1st quartile over the last 3 and 5 years
� Our European Income Portfolio is a 1st quartile performer over the last 3, 5 and 10 years
18
Performance figures are as of 30 June 2012. AUM figures are as of 30 June 2012.* Includes only dedicated high yield portfolios and the high yield component of multi-sector portfolios.Past performance does not guarantee future results.Note that although peer rankings are high, absolute performance over some periods may be negative. Source: Global High Yield Portfolio performance ranking refers to the A share class and the Lipper Global Bond Global High Yield Peer Group. Global High Income composite ranking refers to the eVestment Global High Yield Peer Group. US High Yield composite performance ranking refers to the eVestment US High Yield Peer Group. European Income Portfolio performance ranking refers to the A share class and the Lipper Global Bond EUR High Yield Peer Group.
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
Why AllianceBernstein Short Duration High Yield Portfolio?
19
� Stable, Experienced, Well Resourced Investment Team
� More than 20 years experience managing US$ 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
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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
AllianceBernstein Short Duration High Yield PortfolioCan Access a Range of Hedging Strategies
Source: AllianceBernstein
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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.com Low Volatility High Yield Low Volatility High Yield
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.
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
Source: AllianceBernstein
Implement Dynamic Hedging to Manage Volatility
23
Focus on Higher
Credit Quality
EmphasizeShorter Duration
Implement Dynamic HedgingTo Manage Volatility
ShortDuration
High Yield Portfolio
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
AllianceBernstein Short Duration High Yield PortfolioCan Access a Range of Hedging Strategies
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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.
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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%
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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 *
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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.com Low Volatility High Yield Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield
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
AllianceBernstein.com Low Volatility High Yield
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
� Lipper Fund Awards 2012 Gulf:
� Bond Emerging Markets Global over 5 Years
European Income Portfolio
� Lipper Fund Awards 2012 Gulf:
� 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
—High Yield over 5 and 10 Years
� Lipper Fund Awards 2012 Austria, France, Switzerland: Bond
Global—High Yield over 3, 5 and 10 Years
� Lipper Fund Awards 2012 Spain: Bond Global
—High Yield over 3 and 10 Years
RMB Income Plus Portfolio
� Feri Euro Ratings Award 2012: Best Fund—Fund Innovations
� Fondmarknaden Award 2011: Best Fund Launch of the Year
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
AllianceBernstein Product Range June 2012
31
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
AllianceBernstein Product Range June 2012
32
AllianceBernstein.com Low Volatility High Yield Low Volatility High Yield
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