Your SlideShare is downloading. ×
Alliance bernstein
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Alliance bernstein

1,554
views

Published on

Published in: Economy & Finance, Business

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,554
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
26
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Montreux, 9-11th May AllianceBernstein RMB Income Plus Portfolio Best Large Bond Group 2012 Lower Volatility High Yield AllianceBernstein RMB Income Plus Portfolio How a Conservative High-Yield Strategy Can Help Investors in Uncertain Markets Jeremy Cunningham, CFA Senior Portfolio Manager—Fixed IncomeThis information is issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA. Registered number 2551144. AllianceBernstein Limited is authorised and regulated in the UK by theFinancial Services Authority (FSA – Reference Number 147956). This information is directed at Professional Clients only and is not intended for public use. It is provided for informational purposes onlyand is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security, product or other instrument, or for AllianceBernstein to enter into or arrange any type oftransaction as a consequence of any information contained herein. The views and opinions expressed in this document are based on AllianceBernsteins internal forecasts and should not be reliedupon as an indication of future market performance. The value of investments can go down as well as up and investors may not get back the full amount invested.©2012 AllianceBernstein
  • 2. Low Yields Pose an Investment DilemmaYields Have Been Falling Short Rates are Near Zero 12.0 4.0 US Intermeidate Corp. (Financials Only) 10.0 3.5 3.0 8.0 US Intermediate US Corporates (ex-Financials) Treasuries 2.5 6.0 2.0 4.0 1.5 1.0 2.0 5 Year Treasuries 0.5 0.0 0.0 01 02 03 04 05 06 07 08 09 10 11 12 0 5 10 15 20 25 30 Years to MaturityYield data through February 29, 2012. Yield curve data as of March 2, 2012.Source: Barclays Capital and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 1
  • 3. High Yield Offers Attractive Returns with Lower Volatility Than EquitiesCorrelations Bonds* Equities Equities vs. High Yield 1994-PresentLow Volatility 0.16 0.50 High Yield 15.8% High Yield 0.22 0.61 9.3% 7.3% 7.3% 6.4% 5.6% Low Volatility HY US HY World Equity Annualized Return Annualized Volatility In USD. Historical information provided for illustrative purpose only. Returns and volatility are annualized for January 1994–November 2011 *Bonds are represented by Barclays Aggregate Index World Equities are represented by the MSCI World Index. US High Yield is represented by the Barclays Capital US High Yield 2% Capped Index, Short Duration HY is represented by the Barclays Capital US HY Ba/B 2% Capped 1-5 Yr Index Source: Barclays Capital and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 2
  • 4. AllianceBernstein Market Cycle Indicator Phase I Phase II Phase III Phase IV Rally Carry Crisis Recovery 2/28/2010 2/28/2011 (7.5)% (14.9) 20.2% 19.7% 18.7% % (23.3) % MCI Positive, Increasing MCI Positive, USHY USHY USHY USHY USHY USHY Decreasing BB B CCC BB B CCC 3/31/2007 MCI 39.0% Negative, Decreasing 21.1% 16.7% 10.5% 8.7% MCI Negative, 6.0% Increasing USHY USHY USHY USHY USHY USHY BB B CCC BB B CCC 10/31/2008 Our Market Cycle Indicator (MCI) is a proprietary The phase of the cycle helps to better inform our tool we use to identify current phase and phase risk budgeting decision transitionsGreen dots are representations of points in time. Returns are Barclays Capital US HY 2% Issuer Constrained average annualized monthly returns from January 1993 to June 2011. Historicalinformation provided for illustrative purpose only.Source: Barclays Capital, Bloomberg and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 3
  • 5. Low Volatility High Yield: A Focus on Conservative High Yield StrategiesOver the long term, a conservative approach improves risk-adjusted return potential 1993–Present Annualized Return Annualized Volatility Sharpe Ratio High Yield 7.91% 8.80% 0.90 Shorten Duration High Yield 1-5 Year 8.33% 7.47% 1.12 Improve Credit Quality 8.64% 7.03% 1.23 High Yield BB Employ Hedging Expected result: May reduce Objective is to Strategies Higher Long Term High Yield + Hedging return reduce volatility Information RatioHistorical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield Index members with an Option Adjusted Durationof 1-5 years. BB represented by the Barclays Capital US High Yield 2% Issuer Constrained-BB Index. ‘High Yield + Hedging Strategies’ represented by the Barclays Capital US HY 2% IssuerConstrained Index with 15% of yield spent on hedges using 5% out of money S&P puts.Source: Barclays Capital, Bloomberg and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 4
  • 6. Shorten Duration Improve Credit QualityEmphasize Shorter Duration Employ Hedging StrategiesThe lower the duration of a bond, the less sensitive its price is to changes in its yield High Yield vs. Short Duration High Yield: Performance Benefit: In a high yield bear market, lower Average Monthly Returns, 1993–present duration bonds hold their value better and historically have outperformed comparable bonds with higher durations 1.7% 1.4% Cost: In a high yield bull market, lower duration bonds will underperform comparable higher duration bonds (1.4)% (2.1)% Over a full market cycle: shorter duration high When High Yield When High Yield yield bonds have delivered superior risk-adjusted is Down is Up returns than the broader high yield market High Yield High Yield 1–5YrHistorical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield Index members with an Option Adjusted Durationof 1-5 years.Source: Barclays Capital and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 5
  • 7. Shorten Duration Improve Credit QualityFocus on Higher Credit Quality Employ Hedging StrategiesHigher rated high-yield bonds have systematically outperformed lower-rated bondsover a market cycle High Yield vs. BB High Yield: Performance Average Monthly Returns, 1993–present Benefit: In a high yield bear market, higher rated bonds hold their value better and significantly outperform comparable bonds with lower ratings 1.7% 1.5% Cost: In a high yield bull market, the lowest quality bonds often perform best in ‘the dash to trash’ (1.5)% (2.1)% Over a full market cycle: higher quality (BB rated) When High Yield When High Yield high-yield bonds have outperformed the broader is Down is Up high-yield market over full market cycles and delivered lower volatility High Yield Market BB High YieldHistorical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield 2% Issuer Constrained Index members with a BBcredit quality.Source: Barclays Capital and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 6
  • 8. Characteristics of the High Yield Market Average Rating: B Average Duration: 4.4 Years 0-3 27% 5+ 36% BB B 47% 40% NR CC CCC 3-5 0.2% 1% 11% 37% C 0.4% LOW VOLATILITY HIGH YIELD UNIVERSE*: 1100+ issuers with over $900 billion nominal of bonds outstandingAs of December 31, 2011Based on the Barclays Capital Global High Yield Index*Calculated using all bonds in the index with an option adjusted duration of 5 years and lessNumbers may not sum due to rounding. AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 7
  • 9. Spreads Adjusted for 2008 Cycle Losses Offer High Risk Premia ex CCCs Current Risk Premium Percent 12.0 10.0 8.0 6.0 4.0 2.0 0.0 AA A BBB BB B CCC Implied Premium Average Loss Last 5 YearsHistorical analysis does not guarantee future results.Average Loss Last 5 Years is as of December 2010. The losses are based on issuer-weighted default rates and issuer-weighted senior unsecured bond recovery rates.Spread levels are as of February 29, 2012Source: Barclays Capital, Moody’s and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 8
  • 10. Shorten Duration Improve Credit QualityImplement Dynamic Hedging to Manage Volatility Employ Hedging Strategies We apply hedging strategies designed AllianceBernstein Short Duration High Yield Portfolio to mitigate volatility and buffer the Can Access a Range of Hedging Strategies portfolio during extreme market stress Equity Put Options Emphasize Focus on Bond Credit Shorter Higher Futures/ Default Duration Credit Quality Swaps Swaps Short Duration Portfolio High Yield Currency Credit Portfolio Options Tranches Implement Dynamic Hedging To Manage Volatility 9Historical analysis do not guarantee future results.As of December 31, 2011Source: AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 9
  • 11. Shorten Duration Hedging Strategies to Offset or Reduce Risk in Portfolio Improve Credit Quality Example trades Employ Hedging Strategies Hedge Idea Implementation Impact If growth is anaemic inflation risk will fall (deflation Long 7 year and Short 5 year treasuries Gains on yield curve risk increase), longer dated bond yields fall, and (curve flattener). flattener offset lossesYield Curve credit spreads widen. 5-7yr part of US Treasury from credit spread curve was steepest and offered the opportunity to Cost: zero cash outlay. widening enter a curve flattener at zero cost. Long AUD put / USD call Gains on currency put If growth is anaemic commodity prices likely to fall, option should offset with a knock-on effect on commodity currencies. Cost: Currency option cheaper to buy losses on high yieldCurrency than high yield index option. portfolio If the Eurozone sovereign debt crisis escalates, Long EUR put / USD call Gains on currency put this may lead to a weaker Euro and be the likely option should offset catalyst for further sell-off of risky assets, including Cost: currency option cheaper to buy losses on high yield high yield than high yield index option. portfolio If risk aversion increases, spreads on all credit Buy Protection on Investment Grade markets will widen further. In the event of a severe Corporate and Emerging Market Indices. Gains on CDS sell off, we would expect more downside risk in EM protection shouldCDS and Investment Grade markets, which have proven Cost: Lower cost versus buying partially offset losses in more resilient over Q3, versus high yield, which is protection on high yield indices high yield portfolio already pricing in a more negative outlook. If the market environment is negative for Long put options on S&P equity index, short put option on HY CDX Index. Gains on equity index companies, equity markets, which have held up put options will offsetEquity Options better than high yield over Q3, should fall more losses on high yield sell- sharply than implied by the relative pricing of equity Cost: zero cash outlay, as sale of HY off and HY put options. puts funded purchase of equity putsExamples listed include all hedging trades initiated between 1 Aug 2011 and 14 Nov 2011. Subsequent to initiation, hedge positions may have been increased or closed.Historical information provided for illustrative purpose only. AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 10
  • 12. AllianceBernstein Short Duration High Yield Portfolio:Performance Summary Period Ended March 31, 2012 1Q 4Q 3Q Since 2012 2011 2011 Inception Short Duration High Yield Portfolio USD I2 Share 3.8% 5.0% (5.6)% 2.9% Class Barclays Capital Global High Yield Corporates 1–5 year Ba/B 6.4 4.3 (5.6) 4.7 Index (USD Hedged) Relative Performance (2.6)% +0.7% 0.0% (1.8)% Barclays Capital Global High Yield Corporates Index (USD 6.8 5.9 (8.0) 4.3% Hedged) Relative Performance (3.0)% (0.9)% +2.4% (1.4)% Comment on the most recent quarter: o The portfolio was defensively positioned underweight European names, which rebounded strongly over Q1, leading to underperformance relative to the fund’s benchmark. Long term performance expectations: o This strategy is expected to outperform the broader high yield market when high yield is down, but to lag when the high yield market is up. o As the strategy is expected to capture most of the return of the high yield market over a market cycle with lower volatility than the broader high yield, market, it is expected to generate superior risk adjusted returns over the long term.Past performance does not guarantee future results.In US dollars. Data are preliminary; numbers may not sum due to rounding.Inception date: AllianceBernstein—Short Duration High Yield Portfolio (class I2)—29 July 2011Performance is represented by Class A shares and is calculated at NAV with all dividends reinvested. Performance for more recent periods may be different from that shown. Total returns,provided by AllianceBernstein, reflect the change in net asset value and assume reinvestment of any distributions paid on fund shares for the period shown, but do not reflect sales charges.Accordingly, these figures do not represent actual returns to an investor. The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individualsecurities in which it invests fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.Source: Barclays Capital, JPMorgan Chase and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 11
  • 13. Low Volatility High Yield: What Investors Should Expect Over a market cycle: Expected to capture most of the return of the high yield market With lower volatility than the broader high yield market Expected to deliver superior risk adjusted returns over a market cycle High Yield Bull Market: Low beta, conservative approach lags broader high yield market High Yield Bear Market: Low beta, conservative approach outperforms broader high yield market AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 12
  • 14. AllianceBernstein Short Duration High Yield: Portfolio Exposures andCharacteristicsDuration and Yield Credit Exposures by Sector *Portfolio Duration 2.8 years Commercial Mortgage Backed Secs (CMBS)Net Distribution Yield 2.2% Corporate Utilities AT Share Class 4.42% Bank Loans 3.3% 6.7% BT Share Class 3.54% Corporate Financials 4.6% Credit AT Share Class EUR hedged 3.53% Emerging Market baskets Quasi-Sovereign 10.9% AT Share Class GBP hedged 2.89% 1.8% Emerging Market Sovereigns Corporate Industrials 1.4% 67.7% Preferred Shares 1.6%Fixed Income Exposures by Country** Credit Exposure by Rating*: Average Rating BB Investment Grade 7.8% Other EM 3.1% Other United States 4.8% Great Britain 76.2% BRICS BB 3.2% 1.9% 27.3% Luxembourg BNew Zealand 64.9% 8.9% 1.0% Germany 1.0%As of 31 March 2012. All data is subject to change.*Credit exposures by sector and by rating covers credit holdings within the portfolio only, and excludes from consideration any holdings in cash, currency forwards, currency options, interest rateswaps and any AA- or higher rated government bond holdings.**Fixed income exposures by country of risk excludes from consideration any holdings in cash, currency forwards and currency options.Source: AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 13
  • 15. AllianceBernstein Short Duration High Yield PortfolioFund InformationInception 29-July-2011Domicile LuxembourgISINs LU0654560100 USD LU0654561173 EUR-HedgedManagement Fees 0.55% For more information please visit us at: www.alliancebernstein.com/solution/fixed-income-EU AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 14
  • 16. Contact Details Client Team Investment Team Georg Kyd-Rebenburg Jeremy Cunningham Senior Vice President and Managing Director Senior Portfolio Manager—Fixed Income georg.kyd-rebenburg@alliancebernstein.com jeremy.cunningham@alliancebernstein.com +49 (0) 89 255 40 103 +44 (0) 20 7470 1507 Peter Stiefel Director Switzerland peter.stiefel@alliancebernstein.com +41 (0) 22 310 9082 Wolfgang Kostner Vice President wolfgang.kostner@alliancebernstein.com +49 (0) 89 255 40 122 AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 15
  • 17. AppendixAllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 16
  • 18. AllianceBernstein High Yield Product PlatformOur product platform captures a wide range of opportunitiesService Typical Benchmark Primary Sectors Typical Currency Corporates, Global High Yield, or a Blended Benchmark of emerging market debt (local & hardGlobal High Yield 10-20% (Max 50% non-US) Global High Yield and Emerging Markets currency), other high yielding debt securitiesUS High Yield Barclays US High Yield 2% Capped Corporates and related derivatives <5% (Max 10% non-USD)Euro High Yield Barclays Euro High Yield 2% Capped Corporates and related derivatives 0% (Max 30% non Euro)Short Duration High Yield Barclays Global 1-5 Year Ba/B Corporates and related derivatives 0% (Max 20% non-USD) Source: AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 17
  • 19. AllianceBernstein Short Duration High Yield Portfolio:Exceeding Expectations Monthly Performance (%) 6.0 5.5 4.7 3.8 3.0 2.7 2.5 2.4 2.4 2.1 2.0 1.4 0.2 (0.1) (0.1) (1.4) (2.2) (2.2) (2.5) (3.3) (4.3) Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Short Duration High Yield Global High Yield BC US HY 2% Issuer CappedIn US dollarsData are preliminary.Inception dates: Global High Yield—September 23, 1997; Short Duration High Yield—July 31, 2011Past 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 US$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: Barclays Capital and AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 18
  • 20. Fixed Income at Alliance Bernstein:Our Credentials in Managing Fixed IncomeKey advantages: Experienced and Well Resourced Team 40-year track record in managing fixed income strategies (Since 1971) Managing high yield since 1987 and Emerging Market Debt since 1989 Manager of the largest High Yield fund in Luxembourg: AllianceBernstein Global High Yield Portfolio Well-resourced team with depth and breadth of experience and coverage Effective Investment Process Globally integrated team and approach A true reliance on both quantitative and qualitative research Top-down analysis and active sector selection complement bottom-up credit analysisAs of 31 December 2011 AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 19
  • 21. AllianceBernstein: A Leader in Fixed Income Investing Fixed-Income Assets Under Management: $213 Billion Global Multi- Emerging Mkts/ Credit US Tax-Exempt Sector* High Income $81 billion $30 billion $57 billion $45 billion Global Research Analysts Portfolio Managers TradersResources 55 47 16As of March 31, 2012*Includes global and regional single and multi-sector mandates AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 20
  • 22. AllianceBernstein Is Positioned to Capitalize on Global Opportunities Montréal Tokyo Portfolio Management Credit Research Portfolio Management New York Economic Research Credit Research Quantitative Research London Portfolio Management Economic Research Credit Research Quantitative Research Hong Kong Portfolio Management Economic Research Portfolio Management Singapore Credit Research Investment Management and/or Research Melbourne Economic Research Credit Research Quantitative Research Portfolio ManagementAs of March 31, 2012 AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 21
  • 23. Unparalleled Resources Located Around the World Number of Research Analysts Fixed Multi- *** Equities ** Alternatives Total Substantial commitment to fixed income research Income* Asset Fundamental 73 39 0 10 135 Quantitative 11 9 28 10 58 Economist 0 7 0 0 7 Total Analysts 84 55 28 20 200 Number of Portfolio Managers and Average Experience Total Yrs Exp Experienced team of investment professionals Equities 54 23 Fixed Income 47 21 Multi-Asset† 11 21 Alternatives†† 11 21 Wealth 14 26 ManagementAs of March 31, 2012*Includes Fixed Income Solutions analyst**Includes Defined Contribution, Global Analytics, Asset Allocation, Dynamic Asset Allocation and Quantitative Research Analysts***Includes Currency, FoF, Real Estate, Special Situations and Quantitative Research Analysts†Includes Passive, Defined Contribution, Dynamic Asset Allocation and Asset Allocation portfolio managers††Includes Real Estate, Energy, Currency and FoF portfolio managersSource: AllianceBernstein AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 22
  • 24. An Award-winning Fixed Income Team Winner of the Lipper Fund Awards 2012 AllianceBernstein was awarded the top fixed income award in Europe, Austria, Germany and Switzerland, by Lipper, the mutual fund rating agency. In total we received 17 awards including the prestigious “Best Large Bond Group“ Award: Asset Class Group Award Best Large Bond Group Fund Awards Emerging Markets Debt Portfolio European Income Portfolio Global High Yield Portfolio Winner of Feri EuroRating Awards: Fund Innovation The AllianceBernstein Renminbi Income Plus Portfolio, launched in May 2011, has been awarded this year’s Feri EuroRating Award for the most innovative fund in the German, Swiss and Austrian markets. The Renminbi Income Plus Portfolio was designed for investors who want to gain exposure to the rising Chinese currency, as well as receive high-yielding income. AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 23
  • 25. AllianceBernstein Fixed Income Product Range:Luxembourg-based ProductsAll data as of December 31, 2011 AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 24
  • 26. A Word About RiskA WORD ABOUT RISKMarket Risk: The market values of the investments may rise and fall from day to day, so investments may lose value.Interest Rate Risk: Bonds may lose value if interest rates rise or fall—long-duration bonds tend to rise and fall more than short-duration bonds.Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or capital—the lower the rating, the higher the risk of default. Ifthe issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline.Allocation Risk: Allocating to different types of assets may have a large impact on returns if one of these asset classes significantly underperforms the others.Foreign Risk: Investing in overseas assets may be more volatile because of political, regulatory, market and economic uncertainties associated with them. Theserisks are magnified in assets of emerging or developing markets.Currency Risk: currency fluctuations may have a large impact on returns and the value of an investment may be negatively affected when translated into thecurrency in which the initial investment was made.Capitalization Size Risk (Small/Mid): Holdings in smaller companies are often more volatile than holdings in larger ones.MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. TheMSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed orproduced by MSCI.The sale of AllianceBernstein funds may be restricted in certain jurisdictions, as detailed in the funds prospectuses. Before investing in the shares of anyAllianceBernstein funds, investors should review the funds current simplified and/or full prospectus, together with the fund’s most recent financial statements.Copies of these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge fromAllianceBernstein (Luxembourg) S.A.R.L., by visiting www.alliancebernstein.com or by contacting the local distributor in each of the regions in which the fundsare authorised for distribution.AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.©2012 AllianceBernstein L.P. www.alliancebernstein.com AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 25

×