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GLOBAL EQUITIES—MAY 2012We see exceptional investment opportunities in emergingAsia stocks. These economies are expected to signiﬁcantlyoutstrip developed-world growth. While not immune to aglobal slowdown, they are less vulnerable than they usedto be. Their populations are richer, their companies aremore productive, and their domestic personal and businessconsumption is a bigger driver of growth. Emerging Asianations also have less debt and higher savings rates thantheir developed counterparts and, thus, enjoy greater ﬁscaland monetary ﬂexibility.Even after a recent rally, however, Asia ex Japan stockvaluations remain well below long-term averages. Moreover,valuation spreads between the cheapest and most expensiveAsia ex Japan stocks are unusually wide today, suggestingoutsize return potential for research-driven value investingstrategies as current market anxieties ease. History shows thatvalue investing has been highly effective in Asia, outperformingstrategies that emphasize growth and quality by a widemargin, and with comparable or less volatility. Our researchalso suggests that buying Asia ex Japan stocks when they areas cheap as they are today can be particularly rewarding.Despite similar quality metrics, our Asia ex Japan portfoliotrades at a signiﬁcant discount to the market and pays ahigher dividend yield. It also has some of the strongest valuecredentials among competing Asia ex Japan portfolios.As such, we believe it is exceptionally well positioned totake advantage of the burgeoning opportunities in emergingAsia stocks, particularly in a value recovery.! Offers exposure to the world’s fastest-growing economies! Employs a distinctive value strategy with a strong history of success in Asia! Relies on collaborative global and local research and portfolio management teams with extensive experienceinvesting in AsiaWhy Asia Equity?AllianceBernstein Asia Ex-Japan Equity PortfolioAsia Ex Japan Stocks Are Cheap Versus HistoryRatio(×)1.01.52.02.53.004 05 06 07 08 09 10 11AveragePrice/Book: MSCI AC Asia ex Japan IndexKey Features of the AllianceBernstein Asia Ex-Japan Equity PortfolioValue Investing Outperforms Other Strategies in AsiaHistorical analysis does not guarantee future results.Annualized performance and volatility of highest quintile relative to lowest quintile in theBernstein Asia ex Japan universe based on factors shown, as ranked by the Bernstein globalexpected-return model. Asia ex Japan market data are from January 1992 through March 2012.Source: MSCI and AllianceBernsteinThrough March 31, 2012Source: MSCI and AllianceBernsteinFactor Returns and VolatilityJan 1992–Mar 2012Volatility of Return Spreads (%) MoreLessAnnualizedReturnSpreads(%)02610148 10 12 14 16 18 20 22 24 26 28 30(2)SalesGrowthReturnon EquityPriceMomentumPrice/BookPrice/SalesPrice/EarningsEarningsGrowthSize! Distinctive Value ApproachOur value focus distinguishes us from other Asia ex Japan servicesand uniquely positions us to capture the burgeoning opportunityin emerging Asia equities.! Depth and Breadth of ResearchOur collaborative global team of fundamental and quantitativeresearch analysts provides the deep company knowledge andinsights that drive our stock selection.! Seasoned Investment TeamDrawing on our firm’s 20 years of experience in valueinvesting in Asia, our portfolio has delivered consistentlong-term outperformance.