AllianceBernstein Holding L.P. · NYSE:AB
AllianceBernstein Holding L.P — Investor Day (November 2014)
26 slides from AllianceBernstein Holding L.P's investor day presentation, Nov 20, 2014
Slide 1: AllianceBernstein: Executing for a Strong Future
November 20, 2014 AllianceBernstein: Executing for a Strong Future AXA IR Day Presentation Peter S. Kraus Chairman & Chief Executive Officer Member of the AXA Management Committee
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements 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 fac
Slide 3: AllianceBernstein: Executing for a Strong Future
AllianceBernstein: Executing for a Strong Future AllianceBernstein is a major global asset manager with a culture of research, investment discipline and collaboration We have a diverse array of relevant client offerings, broad global distribution capabilities and the resources to grow and evolve a
Slide 4: AllianceBernstein: At A Glance
AllianceBernstein: At A Glance A major global asset manager $473B in AUM as of September 30, 2014 3,447 employees worldwide located in 46 cities and 22 countries Billions in asset flows Gross sales of $57B YTD ‘14, $80B+ annually in 2013 and 2012 $6.7B in YTD net flows positive across al
Slide 5: Firmwide Overview: Strong Year-to-Date Momentum Across the Board
Firmwide Overview: Strong Year-to-Date Momentum Across the Board All figures in USD Billions, unless otherwise noted $65.7 $1.9 $57.3 $1.7 Gross Sales Adjusted Revenues YTD 14 YTD 13 YTD 14 YTD 13 $6.7 $1.4 $1.4 Net Flows Adjusted Expenses $(2.0) YTD 14 YTD 13 YTD 14 YTD 13 $473.0 22.9% $445.2 22.3%
Slide 6: AB and AXA: A Strong Strategic Partnership
AB and AXA: A Strong Strategic Partnership AXA is AB’s Largest Client by AUM AXA is a Core Investor in Various AB Growth Initiatives AB manages $110B in AUM for AXA* Real Estate Funds I and II Concentrated Growth Equities (WPS) 177 portfolios in 77 investment services Real Estate Debt Mu
Slide 7: The Four Pillars of Our Long-Term Strategy for Growth
The Four Pillars of Our Long-Term Strategy for Growth Maintain and improve investment performance and deliver for clients Diversify our business across channels, investment services and geographies Develop innovative new products and services to meet clients’ evolving needs Achieve greater operating
Slide 8: Maintain Investment Performance: Fixed Income
Maintain Investment Performance: Fixed Income % of FI Assets in Outperforming Strategies AB FI Products Top Quartile* Across Periods As of September 30, 2014 Strategy 1-Yr 3-Yr 5-Yr 84 AB Fixed Income 80 AUM: $262B Global High Income TIPS Plus US High Yield UK Core Plus European
Slide 9: Improve Investment Performance: Equities
Improve Investment Performance: Equities Percentage of Active Equity Assets in Outperforming Strategies for 3-Yr Period September 30, 2013 September 30, 2014 Total AUM: $101B Total AUM: $112B 42% 70% Top Quartile Performers* 1-Year 3-Year 5-Year US Strategic Value US SMID Cap Value US SMID Cap Growt
Slide 10: Diversify and Globalize: Evolving Our Business Mix
Diversify and Globalize: Evolving Our Business Mix The Old Prescription The New Prescription Fixed Equities Income Return Risk Seeking Reducing Bonds Stocks Risk Multi – Asset Return 40% 60% Reducing Seeking Solutions Newer Diversifiers of Risk and Return Alternatives AllianceBernstein.com G9
Slide 11: Diversify and Globalize: A Broad and Balanced Fixed Income Platform
Diversify and Globalize: A Broad and Balanced Fixed Income Platform Category Objective Newer* Offerings Legacy Offerings EM Debt Local Currency Global HY / High Income EM Corporate Return seeking American Income RMB Income Plus strategies with less European Income Return Seeking / Income Asia Pacifi
Slide 12: Diversify and Globalize: Building an Illiquid Credit Business
Diversify and Globalize: Building an Illiquid Credit Business Residential Commercial Middle Market Infrastructure Mortgage Mortgage Corporate US Housing recovery ~$1 trillion of Demand for financing Strained public Pullback of US maturities over next 3 by middle market resources Opportunity yea
Slide 13: Diversify and Globalize: Evolving Our Equities Client Offering
Diversify and Globalize: Evolving Our Equities Client Offering Objective Representative Strategies European Flexible Equity …limited downside risk Low Volatility Select US Long/Short Global Core Equity …stable and consistent alpha Select US Equity Seeking Emerging Markets Multi-Asset equity re
Slide 14: Diversify and Globalize: Client-Focused and Complementary Acquisitions
Diversify and Globalize: Client-Focused and Complementary Acquisitions Select Equities W.P. Stewart CPH Capital Acquired May 2011 December 2013 June 2014 Assets at acquisition $1.1B $2.1B $3.0B Relative return and Style- and factor-neutral Investment description Concentrated growth equities absolute
Slide 15: Diversify and Globalize: Broadening Our Global Retail Platform
Diversify and Globalize: Broadening Our Global Retail Platform Newer* Offerings as % of Retail Gross Sales Success with Newer Offerings Nine strategies with >$500M in assets Newer Offerings Select US Equity (Lux): $4.5B (4Q11) Gross Sales CAGR High Income Muni: $1.8B (1Q10) 2010 – 2014**: +52%
Slide 16: Diversify and Globalize: Global Expansion of Bernstein Research Services
Diversify and Globalize: Global Expansion of Bernstein Research Services Expanding Global Footprint Stockholm Opened new offices in Boston and Frankfurt London Frankfurt San Francisco Boston Zurich New trading desks in Zurich and Singapore Los Angeles New York Hong Kong Launched coverage on 29
Slide 17: Diversify and Globalize: Building an Alternatives Presence
Diversify and Globalize: Building an Alternatives Presence Total AUM: $22.8B(1) Multi-Manager Hedge Fund Non-Traditional Equity Commingled Hedge Fund of Portfolios Select US Equity Long/Short* Multi-Asset Custom Hedge Fund Portfolios European Flexible* $2.4B Non-Traditional Multi-Manager Alternative
Slide 18: Innovate for Clients: A Growing Liquid Alternatives Platform
Innovate for Clients: A Growing Liquid Alternatives Platform Real Market Unconstrained Select US Credit Multi-Manager Assets Neutral Bond Long/Short Long/Short Strategies (2010) (2010) (2011) (2012) (2014) (2014) Liquid Alternatives Platform Assets $7.5B $4.8B $2.7B $1.4B 2011 2012 2013 2014 Total A
Slide 19: Innovate for Clients: Creating Multi-Asset Solutions
Innovate for Clients: Creating Multi-Asset Solutions Glidepath Asset Allocation Targeted Strategies Strategies Exposures Design and manage Design and actively Build portfolios that access strategic glidepaths for manage market exposures unique market index and What We Do retirement, education and
Slide 20: Innovate for Clients: Private Client
Innovate for Clients: Private Client US Strategic Equities Global Stocks Real Asset and Bond Targeted Services Inflation: For clients Non-US Stocks vulnerable to inflation spikes DAA Real Asset Alternatives: Multi-manager Bond Inflation fund of funds offerings AB Securitized Assets Bonds Rea
Slide 21: Improve Financials: Right-Sizing and Expanding Our Margin
Improve Financials: Right-Sizing and Expanding Our Margin Success with expense management and margin expansion Reduced headcount by 40% from peak, in line with decline in adjusted revenues 2013 adjusted operating margin of 24% up 7ppts vs. 2011 $125M+ in adjusted non-compensation expense reducti
Slide 22: Sources of Future Growth: Alternatives and Multi-Asset
Sources of Future Growth: Alternatives and Multi-Asset AUM Growth Estimates Outcome-Oriented Solutions Growth Rates 2013-2020 2013-2015 32% 31% 30% 97% 91% 25% 22% 42% 34% 26% 18% Active Cash / Active Alts Balanced / "Go Inflation Income Managed Absolute Target Fixed Passive Equities Multi-Asset Any
Slide 23: AB in the Next Five Years: Pursuing High Potential Growth Opportunities
AB in the Next Five Years: Pursuing High Potential Growth Opportunities Equities: extending our platform CPH, WPS and Low Volatility Fixed Income: exploiting emerging opportunities in global and illiquid credit Private credit, infrastructure, real estate Greater adoption of global credit in the U
Slide 24: Appendix
Appendix AllianceBernstein.com G23
Slide 25: Biography: Peter Kraus
BIOGRAPHY PETER KRAUS CHAIRMAN AND CEO, ALLIANCEBERNSTEIN MEMBER OF THE AXA MANAGEMENT COMMITTEE Peter Kraus is Chairman & CEO of AllianceBernstein. He joined AllianceBernstein in December 2008 from Merrill Lynch & Company Inc., where he served as an executive vice president, the head of global st
Slide 26: AllianceBernstein
/B ALLIANCEBERNSTEIN