Attached files
| file | filename |
|---|---|
| 8-K - ALLIANCEBERNSTEIN L.P. 8K 12-8-2009 - ALLIANCEBERNSTEIN L.P. | form8k.htm |
| EX-99.02 - EXHIBIT 99.02 - ALLIANCEBERNSTEIN L.P. | ex99_02.htm |
EXHIBIT
99.01
December
8, 2009
David
A. Steyn
Chief
Operating Officer
AllianceBernstein
Goldman
Sachs US Financial Services Conference
2009
Merrill Lynch Banking and Financial Services Conference
1
AllianceBernstein.com
Certain
statements provided by management in this presentation are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially
from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following:
the performance of financial markets, the investment performance of sponsored investment products and separately managed accounts, general economic
conditions, industry trends, future acquisitions, competitive conditions, and government regulations, including changes in tax regulations and rates and the
manner in which the earnings of publicly-traded partnerships are taxed. We caution readers to carefully consider such factors. Further, such forward-looking
statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect
events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could
cause actual results to differ, see “Risk Factors” and “Cautions Regarding Forward-Looking Statements” in our Form 10-K for the year ended December 31,
2008 and Form 10-Q for the quarter ended September 30, 2009. Any or all of the forward-looking statements that we make in this presentation, Form 10-K,
Form 10-Q, other documents we file with or furnish to the SEC, and any other public statements we issue, may turn out to be wrong. It is important to
remember that other factors besides those listed in “Risk Factors” and “Cautions Regarding Forward-Looking Statements”, and those listed below, could also
adversely affect our revenues, financial condition, results of operations and business prospects.
Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially
from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following:
the performance of financial markets, the investment performance of sponsored investment products and separately managed accounts, general economic
conditions, industry trends, future acquisitions, competitive conditions, and government regulations, including changes in tax regulations and rates and the
manner in which the earnings of publicly-traded partnerships are taxed. We caution readers to carefully consider such factors. Further, such forward-looking
statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect
events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could
cause actual results to differ, see “Risk Factors” and “Cautions Regarding Forward-Looking Statements” in our Form 10-K for the year ended December 31,
2008 and Form 10-Q for the quarter ended September 30, 2009. Any or all of the forward-looking statements that we make in this presentation, Form 10-K,
Form 10-Q, other documents we file with or furnish to the SEC, and any other public statements we issue, may turn out to be wrong. It is important to
remember that other factors besides those listed in “Risk Factors” and “Cautions Regarding Forward-Looking Statements”, and those listed below, could also
adversely affect our revenues, financial condition, results of operations and business prospects.
The
forward-looking statements referred to in the preceding paragraph include
statements regarding:
< Our expectation that
the leverage in our business model will increase should our assets under
management and revenues continue to grow and our
lower expense base remains stable: Unanticipated events and factors, including strategic initiatives, may cause us to expand our expense base, thus
limiting the extent to which we benefit from any positive leverage in future periods. Growth in our revenues will depend on the level of our assets
under management, which in turn depends on factors such as the actual performance of the capital markets, the performance of our investment
products and other factors beyond our control.
lower expense base remains stable: Unanticipated events and factors, including strategic initiatives, may cause us to expand our expense base, thus
limiting the extent to which we benefit from any positive leverage in future periods. Growth in our revenues will depend on the level of our assets
under management, which in turn depends on factors such as the actual performance of the capital markets, the performance of our investment
products and other factors beyond our control.
Cautions
Regarding Forward-Looking Statements
2009
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AllianceBernstein.com
Offices
in 45 Cities in 24 Countries
Our
Core Brand is Recruiting and Mentoring People to Produce World-Class
Research
2009
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AllianceBernstein.com
ü
ü
ü
ü
2009
Priorities
2009
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4
AllianceBernstein.com
Fixed
Income
Value
Equities
Growth
Equities
Blend
Strategies
Global
Value
Value
International
Value
Value
US
Diversified
Value
Diversified
Value
US
Large
Cap
Growth
Global
Research
Growth
Int’l
Large
Cap
Growth
Growth
Global
Blend
Strategies
Strategies
Int’l
Blend
Blend
Strategies
EM
Blend
Blend
Strategies
Corporate
Bonds
Strategic
Core
Plus
Global
Plus
As of
11/30/09
Performance is
preliminary.
The
information in this table is provided solely for use in connection with this
presentation, and is not directed toward existing or potential investment
advisory clients of AllianceBernstein.
(1)
Investment performance of composites is presented after investment management
fees
Turn
Around Investment Performance
Top
Institutional Services vs. Benchmarks(1)
January through November 2009
January through November 2009
2009
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< Net flows continued
to improve in 3Q09, as account closings slowed and new business activity
accelerated
< Strategic
initiatives:
= Reposition financial
advisors to maximize productivity and client-service efforts
= Dynamic
asset-allocation overlay
= Inflation protection
platform
= Cash management
services
Turn
Around Asset Flows: Private
Client
2009
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6
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< Net flows continued
to improve in 3Q09, primarily due to accelerating sales
=Mutual fund flows
were positive, dominated by fixed income
=Sub-advisory flows
improved, but net flows remain negative
< Strategic
initiatives:
=Product development
- US
thematic; Asian and global equity with dividend; Euro hedged share
classes
=Channel development
- e.g. broadening relationships with key existing partners; financial
institutions and subadvisory in US
and Europe; Japanese regional banks; Korea
and Europe; Japanese regional banks; Korea
Turn
Around Asset Flows: Retail
2009
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7
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< 3Q09 net outflows
improved by 47% sequentially as redemptions slowed and sales increased
fourfold
=Increased interest
from sovereign funds in fixed income offerings
=Reopened regional
equity services are beginning to refill
< Strategic
initiatives:
=Dynamic asset
allocation
=Thematic
investing
=Unconstrained
investing
=Real
estate
Turn
Around Asset Flows: Institutions
2009
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8
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Thematic
Investing
Unconstrained
Investing
Distressed
Credit
Distressed
Real Estate
Individual
Stock Selection
Turn
Around Asset Flows: Product Innovation
2009
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< Sell-side provides
financial diversification
< Sell-side provides
profitable growth
= Research
Ø Grow market share in
US and Europe
Ø Launch Asia research
platform
= Trading
Ø Expand electronic
platform
Ø Derivatives
Ø Global program
trading
= Equity Capital
Markets
< Sell-side
strengthens the firm’s brand equity which we leverage to attract and
retain:
= Buy-side private and
retail clients
= Talent
Exploit
Sellside Research Dominance
2009
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5,663
4,997
4,761
4,654
4,544
4,4XX
Expect
to end 2009
slightly above 4,400
slightly above 4,400
Headcount
down >20%
from 3Q08 peak
from 3Q08 peak
Restore
Operating Leverage
2009
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Net
Income & Operating Margin for 12 Months Ended September 30,
2009
Note:
Amounts exclude distribution revenues/expenses, deferred compensation
mark-to-market revenue/expenses impact and other discrete items
Net
Income Attributable to AB Unitholders
Operating
Margin
>900
bps Increase in
Operating Margin
Operating Margin
Net
Income more
than
$200M, or 92%, Higher
Restore
Operating Leverage
