AllianceBernstein Holding L.P. · NYSE:AB
AllianceBernstein Holding L.P — Q4 2006 Earnings Presentation
40 slides from AllianceBernstein Holding L.P's earnings presentation, Jan 25, 2007
Slide 1: Fourth Quarter 2006 Review
Fourth Quarter 2006 Review Gerald M. Lieberman President & Chief Operating Officer Lewis A. Sanders Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. January 24,
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation and the accompanying oral remarks are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties, and other factors th
Slide 3: Fourth Quarter Highlights
< Capital markets strong < Relative performance somewhat mixed, but with substantial exceptions < Strong market appreciation and net AUM inflows across all channels < Summary of financial performance vs. 4Q05 = (Operating) Ø Net Revenues up 30.3% Ø Operating Income up 48.0% Ø Net Income up 45.4% = H
Slide 4: Market Performance - U.S.
*12 months ending December 31, 2006. Source: Frank Russell Company, Standard & Poor’s, and Lehman Brothers. Market Performance - U.S.
Slide 5: Market Performance - Non-U.S.
*12 months ending December 31, 2006. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-U.S.
Slide 6: Relative Performance Summary
< Value Equities performance was very strong < Fixed Income outperformed, in some cases substantially < Growth Equities performance generally weak, but turnaround expected Relative Performance Summary
Slide 7: Changes in AUM by Channel - Three Months
Three Months Ended December 31, 2006 In $ Millions Changes in Assets Under Management By Channel
Slide 8: Changes in AUM by Channel - Twelve Months
Twelve Months Ended December 31, 2006 In $ Millions Changes in Assets Under Management By Channel
Slide 9: Changes in AUM by Investment Service - Three Months
Three Months Ended December 31, 2006 In $ Millions Changes in Assets Under Management By Investment Service
Slide 10: Changes in AUM by Investment Service - Twelve Months
Twelve Months Ended December 31, 2006 In $ Millions Changes in Assets Under Management By Investment Service
Slide 11: Institutional Investments - Fourth Quarter Highlights
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. < Value Equity and Blend Strategies services accounted for roughly 70% of all new assets < Global & International services comprised approximately 75%
Slide 12: Retail - Fourth Quarter Highlights
(1)Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. < Positive net inflows for sixth consecutive quarter < Significant increase in net asset inflows for full year in: = U.S. Retail mutual funds = Global
Slide 13: Private Client - Fourth Quarter Highlights
(1)Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. Private Client— Fourth Quarter Highlights < Net inflows increased from the third quarter < Financial Advisor headcount increased to 298 – up 14.2% from
Slide 14: Institutional Research Services - Fourth Quarter Highlights
< Revenue growth of 1.9% from prior year quarter and 6.3% for the full year < Revenue, adjusted for advisory fee reclassification, up 6.1% from prior year quarter and 16.2% for the full year < 4Q06 revenue growth driven by London, with U.S. about flat < Client use of our algorithmic trading platform
Slide 15: Growth in Global Assets
Non-U.S. UP 44% Global & Int’l UP 50% By Client Domicile By Investment Service In $ Billions $415 72% $717 Billion +24% at Dec 31, Equity $579 Billion at Dec 31, 2005 $164 28% $540 75% $177 25% F/I Equity F/I Growth in Global Assets
Slide 16: Growth in Blend Strategies Assets
25% 38% 15% (1) Blend Strategies Index/Structured $30 Assets Under Management by Investment Service $717 Billion Blend Strategies AUM $134 Billion (1) (+52% vs. 12/31/05) (1) Includes approximately $4 billion of Blend Fixed Income AUM. 9% 9% 4% In $ Billions Growth in Blend Strategies Assets
Slide 17: Fourth Quarter Revenues
(1) Includes approximately $4 million reclassified from advisory fees. (2) Includes Shareholder Servicing, Investment Gains (Losses) and Other Revenues. NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. In $ Millions Fourth Quarter Revenues
Slide 18: Fourth Quarter Advisory Fees
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. Fourth Quarter Advisory Fees
Slide 19: Fourth Quarter Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. In $ Millions Fourth Quarter Operating Expenses
Slide 20: Fourth Quarter Compensation & Benefits
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. In $ Millions Fourth Quarter Compensation & Benefits
Slide 21: Fourth Quarter Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. In $ Millions Fourth Quarter Expenses
Slide 22: Fourth Quarter Net Income
(1) Includes $7 million gain on disposition of South Africa J.V. (2) Includes $7 million gain on disposition of South Africa J.V. and $8 million gain on disposition of Indian mutual funds (3) Operating Income as a percentage of net revenues. NOTE: Percentages are calculated using revenues and expens
Slide 23: Holding Financial Results
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. In $ Millions (except per unit amounts) Holding Financial Results
Slide 24: AllianceBernstein
2B ALLIANCEBERNSTEIN
Slide 25: AllianceBernstein
2B ALLIANCEBERNSTEIN
Slide 26: Market index returns
Annualized Cumulative 4g06 One Year ‘Three Years ‘Three Years S&P 500 67 158 10.4 384.7 Russell 1000 Growth 59 94 69 22.4 Russell 1000 Value 8.0 222 15.1 52.5 MSCI Emerging Markets 176 822 30.5 122.4 MSCI EAFE 10.4 263 19.9 726 MSCI World 84 20.4 147 50.8 Lehman Aggregate Band 12 43 a7 5 Fetums in %
Slide 27: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 28: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 29: Relative Performance: Blend Strategies Services (After Fees)
Relative Performance: Blend Strategies Services (After Fees) (1)
Slide 30: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 31: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees) (1)
Slide 32: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 34: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 35: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 36: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception– Dec Alliance Growth Equities Inception Date The performance figures in AllianceBernstein Fixed Income reflect corrections made to the original presentation. The information in this table is provided solely for use in connection with this presentatio
Slide 37: Transaction Fees
In $ Millions Transaction Fees
Slide 38: Consolidated Balance Sheet
In $ Thousands, Unaudited Consolidated Balance Sheet
Slide 39: Consolidated Statement of Cash Flows
In $ Thousands, Unaudited Consolidated Statement of Cash Flows
Slide 40: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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