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The sale of shares in AllianceBernstein funds may be restricted in certain jurisdictions. In particular, no shares may be acquired by persons in the U.K. except in certain circumstances and shares may not be offered or sold, directly or indirectly, in the United States or to U.S. Persons, as described in the Fund’s prospectus. Further details may be
obtained from the Distributor.AllianceBernstein investment portfolios are part of ACMBernstein, a mutual investment fund (fonds commun de placement) or ACMBernstein SICAV (société d'investissement à capital variable), an open-ended investment company 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.
Stephen TongPresident and CEO, AllianceBernstein Japan
Team Leader, Japan Growth Equities
AllianceBernstein: Investment Capabilities in JapanInternational Investment – Italian Forum 2007
November 2007
2For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
AllianceBernstein: Unwavering Focus on Investment Excellence
As of 30 June 2007*Includes 3 Blend Strategies, 3 Product Development, 9 Portfolio Analytics, 12 Wealth Management, 3 Strategic Change, 6 China Research and 10 Early Stage Growth analysts **Total assets under management by AllianceBernstein L.P.
Research-Driven Culture: One of the industry’s largest commitments to superior and innovative research
Ongoing Investment: Diversification that allows continuous investment across the firm, even when a particular asset or style may be out of favor
Proven Investment Processes: Highly experienced teams with distinct investment philosophies and consistently applied processes
Global Scope: Expertise with both global and local mandates in markets around the world
Number of Buy-Side Analysts
Fundamental 73 66 43 19 201
Quantitative 8 22 10 27 67
Economists 0 0 8 0 8
Total Analysts 81 88 61 46 276
Growth TotalValueFixed
IncomeMulti-Asset*
Assets Under Management ($ Billions)**
By Client GroupInstitutional $501Retail 185Private Client 107Total $793
By Investment DisciplineGrowth $114Value 312Blend/Alternative Strategies 184Fixed Income 183Total $793
US41%
Non-US59%
Global Orientation
Service Client Domicile
US62%
Non-US38%
AllianceBernstein
3For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
AllianceBernstein in Japan
As of 30 June 2007The clients identified in the list set forth herein were selected based on a variety of factors, including name recognition, industry, geographic region and investment mandate. The investment performance of the accounts managed by AllianceBernstein, including those identified on this list, was not considered. The list is neither a statement of a client’s experience with, nor an endorsement of, AllianceBernstein by the clients identified in the list. It is not known whether the clients identified in the list approve or disapprove of AllianceBernstein’s advisory services.
Full-service office with research, portfolio management, legal and administration capabilities
Long-standing commitment to Japan, with anoffice opened in Tokyo in 1987
Representative Clients in JapanAioi Insurance Pension FundAll Japan Surveying Enterprises Multi Employers Pension FundAozora Bank Pension Fund Asahi Glass Pension FundEast Japan Stationery Sales Pension FundHitachi Investment Management, Ltd.Japan Airlines Pension FundKyushu Electric PowerMitsubishi Electric Pension FundMitsui Chemicals Inc.Mitsui Sumitomo InsuranceNational Bakery Pension FundNational Construction Pension FundPension Fund Association for Local Government OfficialsPfizer Pension FundPublication Pension FundSanwa Shutter Pension FundShin-Daiwa Pension FundSumitomo Trust & BankingTeijin Group Pension FundThe Pension Fund of MizuhoThe Promotion and Mutual Aid Corp. for Private Schools of JapanTokyo Architect Society Pension FundTokyoto Densetsu Kogyo Pension FundTokyo Taxi Companies Employees Pension FundTokyo Truck Pension FundTyco Electrics AMP
Growing business profile:
¥4,593 billion for 153 domestic contracts
¥1,072 billion for public pension
¥1,084 billion for private pension
¥738 billion for pension commingled funds
¥609 billion for mutual funds
AllianceBernstein
4For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
AllianceBernstein─J
apan Strategic
Value
AllianceBernstein─Japan Equity Blend
AllianceBernstein─
Japan Growth
50% 50%
AllianceBernstein─Japan Equity Portfolios
Japan Growth
High-alpha Growth strategy
Invests in the “Dynamic Gap”: Growth companies that are set to deliver earning growth that is higher than market expectations
High-conviction portfolio of 40-50 stocks
Japan Strategic Value
High-alpha Value strategy
Invests in companies that are valued at a discount relative to their long-term earnings power
High-conviction portfolio of 30-50 stocks
Japan Equity Blend
High-alpha Core strategy
Initial combination of 50% Growth and 50% Value strategies
Maintains high-conviction stock-picking of style-based strategies
High information ratio as premium of the Value strategy is not correlated with that of the Growth strategy, and therefore mitigates style risk
Systematic rebalancing when mix reaches 55%/45%
High-conviction portfolio of 55-85 stocks
As of 30 September 2007
Investment policies apply under normal market conditions.
AllianceBernstein
5For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
AllianceBernstein: Two Clear Investment Philosophies
Profits &Stock Decline
EarningsGrowthDecelerates
CorrectiveStrategies
Long-TermEarningsPower
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
AllianceBernstein
Investment policies apply under normal market conditions.
Source: AllianceBernstein
6For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
London
Singapore
Hong Kong
Sydney
Cape Town
New York
São Paulo
Madrid
Mumbai
Wellington
Taipei
Tokyo
Minneapolis
Chicago
Shanghai
AllianceBernstein locations Joint-venture locations
Independent Growth and Value Research
As of 30 June 2007Source: AllianceBernstein
Buy-Side Fundamental Research Analysts
Alliance Growth EquitiesResearch Teams
Consumer 15
Energy/Natural Resources 10
Finance 12
Healthcare 6
Infrastructure 7
Mid-Cap Generalists 5
Technology/Telecom 18
Total 73
Bernstein Value EquitiesResearch Teams
Commodities 14
Consumer 14
Financials 10
Industrials 14
Multi-Industry 6
Technology/Telecom 8
Total 66
AllianceBernstein
7For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Growth: Investment Process Overview
Investment policies apply under normal market conditions.As of 30 September 2007Source: AllianceBernstein
Investable UniverseApproximately 600 Stocks
Alliance Growth ResearchRecommended Stocks
Portfolio Candidates
Japan Growth Portfolio 40 to 50 Stocks
Fundamental Research
Investment Review
Portfolio Construction
AllianceBernstein
8For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Growth: Nickel Price Forecasts
Longer-term, sustained difficulties in developing greenfield nickel projects are likely to keep prices supported for longer than widely assumed
Nickel prices have surged to record highs on supply constraints, falling inventories and strong demand for stainless steel, which consumes some 65% of the world’s nickel
China’s Role in World Nickel Demand
Current analysis and estimates do not guarantee future results.For illustrative purposes; the stock example above is intended only to illustrate the application of our investment philosophy, and this particular security may or may not be held in the current Japan Growth portfolio. The reader should not assume that this was, or will be, a profitable investment. Please read Disclosure on Stock Examples.As of March 2007Source: Bloomberg, LME, Morgan Stanley and AllianceBernstein
Nickel Price Forecast
While there are concerns that de-stocking of stainless steel inventories in the US may start pressuring nickel prices, we believe growing nickel demand from China continue to underpin the market
Nickel Price vs. LME Inventory
US
c/lb
1,000 Tonnes
LME Inventories(Right Scale)
Nickel Price (Left Scale)
0500
1,5002,0002,500
89 92 95 98 01 04 07 08
0
80
120
160
1,00040
North America11%
Europe36%
Japan14%
China12%
Others27%
2004North America
11%
Europe32%
Japan12%
China21%
Others24%
2007
Nickel LME
US
$/lb
150650
1,150
2,1502,650
88 90 92 94 96 98 00 02 04 06
1,650Spot/Forward Curve Alliance Growth
Equities Estimates
Consensus
AllianceBernstein
9For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Sumitomo Metal Mining’s innovative technologies* in processing nickel from low-grade laterite ore will enable aggressive production growth; The firm aims to double annual nickel production to 100,000 tonnes by 2013, with more upside potential
Pacific Metals, Japan’s largest ferronickel producer, is likely to benefit most from strong nickel prices and sustained revisions in consensus expectations
Current analysis and estimates do not guarantee future results. For illustrative purposes; the stock example above is intended only to illustrate the application of our investment philosophy, and this particular security may or may not be held in the current Japan Growth portfolio. The reader should not assume that this was, or will be, a profitable investment. Please read Disclosure on Stock Examples.*Some of those technologies include the Matte Chlorine Leach Electrowinning (MCLE) method, which enables more efficient leaching of nickel using less energy, and the High Pressure Acid Leach (HPAL) technology, which facilitates nickel extraction from low-grade laterite ore As of March 2007Source: Commonwealth Scientific Industrial Research Organization, BEST, JOGMEC and AllianceBernstein
Our EPS Estimates vs. Consensus: Pacific Metals
151 153
175
207
Mar 07E Mar 08EAlliance Forecasts Consensus Forecasts
World Nickel Reserve Potential by Ore Type
Laterite Ore (Low grade)
Sulfide Ore (High grade)
0
20
40
60
80
100
120
Existing Mines Undeveloped Mines
Mt
Japan Growth: Investment Opportunity
Pacific Metals, Sumitomo Metal Mining
AllianceBernstein
10For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Strategic Value: Philosophy
Based on enduring patterns of human behavior...
Loss aversion
Overreaction to short-term events
…and economic behavior
Mean reversion of returns
Cash flow ultimately determines value
ResearchConclusion
InvestmentControversy
Which?
Long-TermEarnings Power
Profits &Stock PriceDecline
Investment policies apply under normal market conditions.As of 30 September 2007Source: AllianceBernstein
AllianceBernstein
11For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
BuildPortfolio
Japan Strategic Value: Investment Process Overview
Explicit Marriage of Fundamental and Quantitative Research
Identify Value Opportunities
Investment Universe
FundamentalResearch
Quantitative Research
Select Best Ideas
Investment policies apply under normal market conditions.As of 30 September 2007Source: AllianceBernstein
AllianceBernstein
12For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Strategic Value: Quantitative Return Model Helps Identify Attractive Opportunities
Sharp Corporation's Expected Return Calculation
Research Focus
Most Attractive
Least Attractive
HighestExpected
Return
LowestExpected
Return
60%
40%
SharpCorporation
For illustrative purposes only.Source: Compustat, Factset, I/B/E/S, MSCI, Worldscope and Bernstein; see Disclosure on Stock Examples.
Contribution toCountry Approach Comparison Data Excess Return
Contribution toIndustry Approach Comparison Data Excess Return
Market vs. Globe Market Globe Price/Book 2.2 3.0 0.18%Price/Earnings 23.1 18.8 -0.21%Price/Forward Cash Earnings 11.1 11.2 0.03%10-Year Bond Yield 1.8% 4.3% 0.25%Currency Momentum -0.2% -0.3% 0.00%Price Momentum 27.5% 23.3% 0.10%Market Sector vs. Market Market Sector Market
Price/Earnings 32.0 23.1 -0.17%Price/Forward Earnings 23.0 19.0 -0.18%Price Momentum 31.9% 27.5% 0.03%Balance Sheet Accruals 0.0% 0.0% 0.00%Market Ind. vs. Market Sector Market Ind. Market Sector Price/Book 2.6 2.8 0.06%
Price/Cash Earnings 14.6 13.9 -0.02%Price/Forward Cash Earnings 12.1 12.0 0.00%Price Momentum 27.9% 31.9% -0.05%Balance Sheet Accruals 0.0% 0.0% 0.00%Company vs. Market Ind. Company Market Ind.
Price/Book 2.1 2.6 0.22%Price/Forward Cash Earnings 7.7 12.1 0.29%Return on Equity 8.1% 9.5% -0.03%Price Momentum 27.5% 27.9% 0.00%Balance Sheet Accruals 0.0% 0.0% 0.00%Return on Assets 3.5% 6.5% -0.25%
Price/Sales 0.8 1.9 0.54%Total 0.77%
Global Sector vs. Globe Global Sector Globe Price/Forward Earnings 19.5 15.6 -0.67%
Price Momentum 18.6% 23.3% -0.14%Global Ind. vs. Global Sector Global Ind. Global Sector Price/Book 3.2 4.2 0.52%Price/Earnings 26.5 26.4 0.00%Price/Forward Earnings 19.6 19.5 0.00%Price Momentum 13.5% 18.6% -0.11%
Regional Ind. vs. Global Ind. Regional Ind. Global Ind. Price/Cash Earnings 14.6 14.5 -0.01%Price/Forward Cash Earnings 12.1 12.1 0.00%10-Year Bond Yield 1.8% 4.0% 0.56%Return on Equity 9.5% 14.9% -0.60%Price Momentum 27.9% 13.5% 0.17%Price/Sales 1.9 2.5 0.39%
Company vs. Regional Ind. Company Regional Ind. Price/Book 2.1 2.6 0.36%Price/Forward Cash Earnings 7.7 12.1 0.51%Return on Equity 8.1% 9.5% -0.04%Price Momentum 27.5% 27.9% -0.01%
Balance Sheet Accruals 0.0% 0.0% 0.00%Return on Assets 3.5% 6.5% -0.39%
Price/Sales 0.8 1.9 0.88%Total 1.43%
AllianceBernstein
13For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Current analysis and estimates do not guarantee future results.Through September 2006*15-inch panel equivalents**Average demand-to-capacity ratioSource: Display Search, I/B/E/S, MSCI, company reports and Bernstein; see Disclosure on Stock Examples
Japan Strategic Value: Investment Opportunity
Valuation is at 23% discount to other Japanese technology stocks
Rising industry capacity is a worry but capital spending is likely to slow, raising the utilization rate. Sharp also has a competitive edge in the high-end market
0
200
400
600
800
01 02 03 04 05 06 07E 08E 09E
0
20
40
60
Penetration of LCD TVs is likely to surge as prices drop to mass-market affordability levels
9092949698
100
02 03 04 05 06E 07E
30
40
50
60
70
18.6×24.3×
Sharp Japanese Technology
Price to 2009 Earnings
Overcapacity Concerns Should Recede
Valuation Is Attractive
LCD TV Penetration Driving Market Growth
LCD TV Penetration (Right Scale)
Total LCD Demand (Left Scale)
Mill
ions
* Percent
Per
cent
Percent
Utilization Rate** (Left Scale)
YoY Capacity Growth (Right Scale)
Sharp Corporation
AllianceBernstein
14For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Objective: 3% premium to benchmark, before fees
Combines two portfolios with strong records
Mitigates style risk through uncorrelated premiums
AllianceBernstein
Japan Strategic
Value
AllianceBernsteinJapan Equity Blend
AllianceBernstein
Japan Growth
50% 50%
30 to 50 Stocks 55 to 85 Stocks 40 to 50 Stocks
AllianceBernstein Japan Equity Blend: Active Core Strategy
Investment policies apply under normal market conditions.As of 30 September 2007Source: AllianceBernstein
AllianceBernstein
15For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Combining Two Outstanding Track Records
*Based on simulated Japan Strategic Value returns. Inception dates: Japan Growth—October 1, 1992; Japan Strategic Value—April 1, 2002Periods 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. Source: Tokyo Stock Exchange and AllianceBernstein; see Performance Disclosures and Notes on Japan Strategic Value Simulation.
5.0%
0.7%
Composite TOPIX
20.2%
11.3%
Composite TOPIX
AllianceJapan Growth
Oct 1991–Jun 2007
BernsteinJapan Strategic Value
Apr 2002–Jun 2007
1.0
(1.0)
NoCorrelation
0.0
PerfectCorrelation
PerfectInverseCorrelation
0.05
Correlation ofJapan Strategic Value*
and Japan GrowthPremiums
(Jul 1992–Jun 2007)
In Japanese Yen
AllianceBernstein
16For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Future Style Leadership Not Clear
Current analysis, estimates and valuations do not guarantee future results. As of August 2007Source: FactSet, I/B/E/S and MSCI
Relative Style Index Valuation
AllianceBernstein
1.0
1.5
2.0
2.5
3.0
89 91 94 97 00 03 06
Ra
tio o
f MS
CI J
ap
an
Gro
wth
P/B
toM
SC
I Ja
pa
n V
alu
e P
/B
17For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Value Opportunity Is at a Low
Current analysis, estimates and valuations do not guarantee future results. Discount to Fair Value = As of 1 January 2007; P/E, P/B = As of 31 May 2007*Chart represents the amount by which the most attractively priced quintiles of Japanese stocks sell below overall market valuations. The proportion of AllianceBernstein investments in stocks from this group will vary over time but will typically be high. Bernstein’s estimates of fair value of these stocks may not be realized for variety of reasons. Source: Compustat, DataStream, DRI, FactSet, I/B/E/S, MSCI and AllianceBernstein estimates
0
10
20
30
40
50
60
71 73 76 79 82 85 88 91 94 97 00 03 06
Pe
rce
nt
AllianceBernstein
Discount to Fair Value*
18For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Market Valuations Have Normalized
Current analysis does not guarantee future results. As of August 2007P/E is based on I/B/E/S 12-month forecast.Source: I/B/E/S, MSCI and Morgan Stanley Research
AllianceBernstein
P/E
0
20
40
60
80
87 90 93 96 99 02 05
Pe
rce
nt
MSCI Japan
MSCI North America
MSCI Europe
MSCI Pacific ex JP
19For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Style Index Composition Constantly Changing
Current analysis does not guarantee future results. As of April 2007Source: AllianceBernstein
AllianceBernstein
0%
20%
40%
60%
80%
100%
97 98 99 00 01 02 03 04 05 06 07
MSCI Value Index MSCI Growth Index
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
97 98 99 00 01 02 03 04 05 06 07
Consumer Discretionary Consumer Staples Energy FinancialsHealth Care Industrials Information Technology MaterialsTelecommunication Services Utilities
20For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Complementary Sector Exposure
(1.3)
(1.7)
(1.8)
(2.6)
1.8
1.9
1.8
1.3
(0.0)
(0.5)
(2.4)
0.6
(2.7)
(3.1)
(2.3)
(0.4)
3.7
4.1
(4.2)
5.6
Sector allocations will vary over time.As of 30 June 2007Based on a representative Japan Style Blend account; excludes cash; columns may not sum due to rounding.*Versus TOPIXSource: Tokyo Stock Exchange and AllianceBernstein
Industrials
Consumer Discretionary
Materials
Energy
Telecommunication Services
Information Technology
Healthcare
Utilities
Financials
Consumer Staples
(0.2)
(4.1)
(0.9)
(2.2)
1.3
0.4
(1.3)
(0.5)
8.2
(2.1)
Value Growth Blend
Active Weights*Percent
AllianceBernstein
21For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Japan Equity Blend: Disciplined Rebalancing to Control Risk
Investment policies apply under normal market conditions.Source: AllianceBernstein
Buy
SellUpper Trigger +5%
Underperform
Outperform
Lower Trigger -5%
As value/growthoutperforms,
trim investment
As value/growth underperforms,
add to investment
50/50Strategic Target
Rebalance Halfway
Rebalance Halfway
AllianceBernstein
22For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
In Japanese YenPeriods 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 USD 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: Tokyo Stock Exchange and AllianceBernstein; see Performance Disclosures and Notes on Japan Style Blend Simulation.
Japan Equity Blend: High Premiums with Moderate Risk
Performance Relative to TOPIXJuly 1992–June 2007
Bernstein Japan Strategic Value
(Simulated) Alliance
Japan Growth
AllianceBernstein Japan Style Blend
(Simulated)
Premium +3.9% +3.2% +3.9%
Tracking Error 6.8% 8.0% 5.4%
Information Ratio
0.570.41
0.72
AllianceBernstein
23For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
AllianceBernstein: Investment Capabilities in a Changing Japan
Through their fundamental research, the AllianceBernstein Japan Growth investment team and the AllianceBernstein Japan Strategic Value investment team are both finding compelling investment opportunities.
Japan Equity Blend is an “active core” strategy that combines two successful style strategies and manages style risk from the bottom up.
Current analysis does not guarantee future results. As of October 2007Source: AllianceBernstein
AllianceBernstein
24For financial representative use only. Not for inspection by, distribution or quotation to, the general public. AllianceBernstein
Appendix
25For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
For illustrative purposes only.Source: Seth J. Masters, “Is There a Better Way to Rebalance?”, AllianceBernstein 2003
Japan Equity Blend: Disciplined Rebalancing Process
...while the costs are linear
The benefit of rebalancing rises geometrically...
When a style component exceeds a 55% weightor more, we trim it back to 52.5%
Tracking Error2× 2
2KRebalancingBenefit =
4×
1×
1× 2×
$
% offTarget
1×
2×
1× 2×$ % offTarget
C ×RebalancingCost =
$
Rebalanceto 2.5%
Trigger Point5%
Net Benefit= Benefit – Costs
Slope = 0,so Marginal Benefit =
Marginal Cost
% offTarget
Zone Where Marginal Rebalancing Benefit
Exceeds Costs
AllianceBernstein
26For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
+3.57%
+3.85%
Unrebalanced Blend Our Rebalancing Method
Japan Equity Blend: Rebalancing Can Add Value
*Simulated 50/50 blends of Japan Strategic Value and Japan Growth before feesRebalancing method assumes transactions cost of 100 basis points. Periods of more than one year are annualized. Numbers may not sum due to rounding. 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 USD 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: Tokyo Stock Exchange and AllianceBernstein; see Notes on Japan Style Blend Simulation.
+28 b.p.
Return Premium to TOPIX* (Simulated): July 1992–June 2007
Rebalancing Requires Discipline (Simulated)
40
45
50
55
60
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
Pe
rce
nt i
n V
alu
e S
tyle
Added to Growth
Added to Value
Rebalance
AllianceBernstein
27For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Disclosure on Stock Examples
AllianceBernstein
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.
28For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Notes on Japan Equity Blend Simulation
AllianceBernstein
The Japan Style Blend Simulation reflects simulated performance results that were calculated by value-weighting the composite returns of Alliance Japan Growth and the simulated returns of Bernstein Japan Strategic Value (see Notes on Japan Strategic Value Simulation), starting at a 50/50 percentage ratio. Both the Japan Strategic Value and Japan 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. The results portrayed reflect hypothetical rather than actual results, based on investment criteria used in their present form. 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 AllianceBernstein were actually managing client money. The results assume a continuous investment for the entire period and that the investor reinvested dividends and other earnings. Past performance is no guarantee of future results. Accounts managed in this style may incur losses as well as gains.
29For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
Notes on Japan Strategic Value Simulation
Simulated results do not represent any predicted or actual results, returns or performances.
AllianceBernstein
The following standards were used in compiling the performance data for the Japan Strategic Value Simulation used in this presentation:
1) Performance Statistics Are Not Financial Statements—There are various methods of compiling or reporting performance statistics. The standards of performance measurement used by AllianceBernstein in compiling these data and model results are in accordance with the methods set forth by the Notes below. Past performance statistics may not be indicative of future results and may differ for different time periods.2) Total Return—Performance results of the accounts and comparisons in the simulated portfolio are made on a total-return basis which includes all dividends and accrued dividends, interest and accrued interest, and realized and unrealized gains or losses. Securities are included in accounts on a trade date basis. Performance results are after the deduction of all transaction charges and before fees.3) Rate of Return—Investment results of the simulation are computed on a daily “time‑weighted” rate-of-return basis. Assuming dividends and interest are reinvested, the growth in dollars of an investment in a period can be computed using these rates of return. 4) Preparation of Data—The simulation performance results are the combination of returns from two distinct periods: July 1992–March 2002 and April 2002 to June 2007. 4.a) For the first period (July 1992–March 2002), the simulation performance is based on the actual results of the Japan only equity portion of the Tax-Managed International Value Portfolio of the Sanford C. Bernstein Fund, Inc. The equity-only returns are then combined with 3-month JPY LIBOR rates, with a constant 2% allocation to cash throughout the period. Ways in which the simulation conditions may differ from actual practice include the facts that: (i) simulation results are based on a portfolio that has a constant 2% allocation to cash; actual cash balances would fluctuate over time; (ii) simulation results represent a Japan portion of a portfolio invested in multiple countries; actual performance would reflect a portfolio not invested in any country but Japan, with more securities than those offered in the model portfolio; (iii) actual portfolios may have actively managed currency; (iv) actual returns would be time-weighted on a monthly basis instead of computed on a daily basis; (v) product offerings to clients are typically tailored to their individual specifications and may differ from the product definition of the model portfolio.4.b) For the second period (April 2002–June 2007), actual Japan Strategic Value composite performance data is used. Please see Performance Disclosure–Bernstein Japan Strategic Value.
30For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
As of December 31, 2006
Performance Disclosures
AllianceBernstein