AllianceBernstein.comA Culture of Research and Thought Leadership for Over 45 Years1As of March 31, 2013*Excluding sell-side analystsSource: AllianceBernsteinSignificant Resources and ExperienceNumberAvg. Yrs.ExperienceResearch Analysts*: 199 14Portfolio Managers: 135 22
AllianceBernstein.comAllianceBernstein: Unwavering Focus on Investment Excellence2 Research-Driven Culture: One of the industry’slargest commitments to superior and innovativeresearch Ongoing Investment: Diversification that allowscontinuous investment across the firm, even whena particular asset or style may be out of favor Proven Investment Processes: Highly experiencedteams with distinct investment philosophies andconsistently applied processes Global Scope: Expertise with both global and localmandates in markets around the worldAs of March 31, 2013*Includes Fixed Income Solutions analyst**Includes Defined Contribution, Global Analytics, Asset Allocation, Dynamic Asset Allocationand Quantitative Research Analysts†Includes Currency, FoF, Real Estate, Special Situations and Quantitative Research Analysts‡Total assets under management by AllianceBernstein L.P.; numbers may not sum due to rounding.§Growth includes $17 billion of AUM utilized in Blend Strategies; Value includes $19 billion utilized in Blend Strategies;Index includes $30 billion utilized in Blend Strategies; Fixed Income includes $11 billion utilized in Blend Strategies.Source: AllianceBernsteinFundamental 70 41 0 8 0 119Quantitative 18 9 22 12 12 73Economists 0 7 0 0 0 7Total Analysts 88 57 22 20 12 199Number of Buy-Side AnalystsEquities TotalMulti-Asset** Alternatives†WealthManagementFixedIncome*Assets Under Management (USD Billions)‡By Client GroupInstitutional $225Retail 150Private Client 68Total $443By Investment Discipline§Growth $39Value 61Alternative Strategies 12Index 71Fixed Income 261Total $443Global OrientationService Client DomicileUS64%Non-US36%US47%Non-US53%
AllianceBernstein.comAllianceBernstein: A Leader in Fixed Income Investing3As of September 30, 2012*Includes global and regional single and multi-sector mandates Global Resources57Research Analysts 52Portfolio Managers19TradersGlobalMulti-Sector*$68billionEmerging Mkts/High Income$67billionCredit$86billionUS Tax-Exempt$29billionFixed-Income Assets Under Management: $250 BillionAs of March 31, 2013*Includes global and regional single and multi-sector mandates
AllianceBernstein.comToday’s Challenge: Increasing Your Income While Preserving Your Capital4With extreme low levels of government and credityields. Interest rates also at very low levels butpoised to rise. Investors require a solution.AllianceBernstein’s Income platform wasdesigned specifically for this challenge and hasdelivered impressive results over timePast performance does not guarantee future results.As of 31 March 2013
AllianceBernstein.com 5As of 31 March 2013. Past performance does not guarantee future results.Yields shown are yield to maturityVolatility and yields shown for Global High Yield Portfolio A USD shares, Euro High Yield Portfolio A EUR shares and Global Bond Portfolio A USD sharesSource: AllianceBernsteinHigher Quality• High Quality Government• Government Related• Securitized• High Quality Corporate Debt• Sub-Investment Grade Corporate• Emerging Market Sovereign• Emerging Market Corporate• Other High Yielding DebtA Major Challenge in Today’s MarketsACMBernstein Global High Yield PortfolioYield 6.2%Volatility 7.6%ACMBernstein SICAV – Euro High Yield PortfolioYield 6.8%Volatility 10.8%ACMBernstein Global Bond PortfolioYield 1.0%Volatility 2.0%Higher QualityHigher YieldIncreasing Your Income While Preserving Your Capital
AllianceBernstein.com1-Year 3-Year 5-Year 10-YearLife ofFundACMBernstein AmericanIncome Portfolio*Quartile:Rank: 8/115 6/100 4/94 1/66 1/21ACMBernstein Global HighYield Portfolio**Quartile:Rank: 12/78 20/51 8/39 2/24 2/5ACMBernstein EuropeanIncome Portfolio† Quartile:Rank: 4/70 2/55 1/48 1/28 8/20ACMBernstein SICAV –Euro High Yield‡ Quartile:Rank:ACMBernstein SICAV –Asia-Pacific Income Portfolio§ Quartile:Rank: 15/28 13/24AllianceBernstein: Leaders In Income Generation61st 1st 1st 1st 1stPast performance does not guarantee future results.As of 31 March 2013*Inception date of 1 July 1993—Lipper Category: Bond—USD; **Inception date of 22 September 1997—Lipper Category: Bond—Global High Yield; †Inception date of 26 February 1999—LipperCategory: Bond—Europe ; ‡Inception date of 23 May 2011—Lipper Category: Bond—CNY; §Inception date of 8 February 2012—Lipper Category: Bond—Asia PacificLipper rankings are based on total returns at net asset value and do not include the effect of the fund’s maximum front-end sales charge for Class A shares. Results would have been lessfavorable had sales charges been included. The fund is ranked within the Lipper categories as detailed above, which includes funds that have generally similar investment objectives to theAllianceBernstein funds. Rankings shown are for Class A shares only, although other share classes are available for which management fees and sales charges will differ and rankings may vary.Investors can’t invest directly in indices or averages, and their performance does not represent the performance of any AllianceBernstein mutual fund.Source: Lipper and AllianceBernstein1st 1st 1st 1st1993199920102012Inception2nd1st19971st1st 1st3rd1st 2nd2nd3rd1st
AllianceBernstein.comProviding A Solution To The Challenge7As of 31 March 2013Source: AllianceBernsteinHighly rated bonds provide thestability in adverse marketconditionsHigh yielding bonds provide thehigh incomeHigher Quality : Capital StabilityHigher Yield : Income GenerationBarbell Active Risk : Provide BalanceThe Solution: Combine High Quality with High Yield…… with Active Asset Allocation
AllianceBernstein.comAllianceBernstein’s Income PlatformOur Experience Shows:8Key requirements for Income Strategies :1. High Income on a Consistent and Stable Basis2. Capital Stability3. Protection During Rising Rate EnvironmentPast performance does not guarantee future resultsAs of 31 March 2013
AllianceBernstein.comPast performance does not guarantee future results. Historical information provided for illustrative purposes only.As of 31 December 2012. Net of fees.*Assuming an investment in 143,472 European Income Portfolio A (EUR) shares on 31 December 2007 at a price of 6.97 each.Source: AllianceBernstein02,0004,0006,0008,000-200,000400,000600,000800,0001,000,0001,200,000Dec07Mar08Jun08Sep08Dec08Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Income (€)Growth of €1mIncome (right scale) Capital (left scale)European Income PortfolioMonthly Income and Capital Value for €1 million Invested on 31 December 2007*9Stability of Income and CapitalEuropean Income Portfolio: Distributions and Capital Over Time Capital of €1,038,737 at the end and total income of €272,582 earned during the last 5 years.
AllianceBernstein.comPast performance does not guarantee future results. Historical information provided for illustrative purposes only.As of 31 December 2012.In US dollar. Net of fees.*Assuming an investment in 116,144 American Income Portfolio A (USD) shares on 31 December 2007 at a price of 8.61 each.Source: AllianceBernstein02,0004,0006,0008,000-200,000400,000600,000800,0001,000,0001,200,000Dec07Mar08Jun08Sep08Dec08Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Income ($)Growth of $1mIncome (right scale) Capital (left scale)American Income PortfolioMonthly Income and Capital Value for $1 million Invested on 31 December 2007*10Stability of Income and CapitalAmerican Income Portfolio: Distributions and Capital Over Time Capital of $1,072,009 at the end and total income of $274,297 earned during the last 5 years.
AllianceBernstein.com 11Past performance does not guarantee future results.As of 31 March 2013Correlation has been calculated using monthly returns.*US Treasuries as represented by Barclays US TreasurySource: Barclays and AllianceBernstein0.25 0.24 0.19 0.200.391-Year 3-Year 5-Year 7-Year 10-YearNo Correlation 0.0High Correlation 1.0Negative Correlation –1.0American Income Portfolio vs. US Treasuries*Worried About Rising Government Yields?Barbell Approach Provides Low Correlation to Government Bonds
AllianceBernstein.com23.9 13.311.7–184.108.40.206.58.814.36.1 4.9 6.44.6–11.325.010.45.89.4–200204095 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 120.25% 0.75% 1.25% 2.00% 1.00%1.00%American Income Portfolio: Standing on Its Own When Rates Rise12Past performance does not guarantee future results. Historical information provided for illustrative purposes only.As of 31 December 2012Portfolio inception date (Class A): 1 July 1993Source: Barclays, Bloomberg, J.P. Morgan and AllianceBernsteinPerformance in Rising Rate Environments1995–2012CreditCrisisPercentFedIncreases:
AllianceBernstein.com 13A Multisector Approach: No Sector Wins All the TimePast performance does not guarantee future results. Historical information provided for illustrative purpose only.As of 31 December 2012Returns are hedged to euro and are as of 31 December for each year. Gap calculation may not sum perfectly due to rounding. Returns are represented by the Barclays Pan-European High YieldIndex and the following sub-indices of the Barclays Euro Aggregate Index: Securitized Index, Government Related Index, Corporates Index, Treasuries Index.Source: Barclays and AllianceBernsteinSector Returns (Percent)20102003 2004 2005 2006 2007 2008 2009BestWorstGap 26.0 7.1 2.0 11.2 4.0 41.4 7.480.1201114.2201218.8EuropeanHigh Yield30.1EuropeanHigh Yield13.6EuropeanHigh Yield5.7EuropeanHigh Yield11.0Euro Gov’trelated2.0EuroTreasuries9.3EuropeanHigh Yield84.4EuropeanHigh Yield15.3Euro Gov’trelated4.6EuropeanHigh Yield27.9EuroCorporates6.8EuroTreasuries7.6EuroTreasuries5.4EuroCorporates0.5EuroSecuritized1.7Euro Gov’trelated6.9EuroCorporates15.7EuroCorporates4.8EuroSecuritized3.6EuroCorporates13.6Euro Gov’trelated4.4EuroCorporates7.6Euro Gov’trelated4.4EuroSecuritized0.2EuroTreasuries1.7EuroSecuritized6.0EuroSecuritized7.7Euro Gov’trelated3.7EuroTreasuries3.4EuroSecuritized11.6EuroSecuritized4.4Euro Gov’trelated7.1EuroCorporates4.0Euro Gov’trelated0.1EuroCorporates0.0EuroCorporates–3.8Euro Gov’trelated6.5EuroSecuritized1.3EuroCorporates1.5EuroTreasuries11.0EuroTreasuries4.1EuroSecuritized6.5EuroSecuritized3.7EuroTreasuries–0.2EuropeanHigh Yield–2.0EuropeanHigh Yield–32.1EuroTreasuries4.3EuroTreasuries1.1EuropeanHigh Yield–2.8Euro Gov’trelated9.1Barbell Makeup is Not StaticConstructing the Barbell Through Active Management
AllianceBernstein.com020406080100Mar08Jun08Sep08Dec08Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Government-Related* IG Corporates HY Corporates EMD Covered Bonds Other**14Sector weighting will vary over time. As of 31 March 2013*Government-Related includes treasuries, local governments, sovereign agencies, quasi-sovereigns and supranationals.**Other includes inflation-linked bonds, cash and currency instruments.Based on the European Income Portfolio. Numbers may not sum due to rounding.Source: AllianceBernsteinEuropean Income Portfolio Sector WeightsPercent over TimeA Multisector Approach To Constructing The BarbellDynamic Sector Allocation is Key to Generating Income and ReturnsConstruct High Quality End- Government- Covered Bonds- High Quality IG Corporate- Yield Curve FlattenersConstruct High Income End- High Yield Corporate- EMD Corporate/Sovereign- FX Carry Premium
AllianceBernstein.comPortfolioVariance(Risk) Number of Securities in PortfolioDiversifiable RiskName Specific / Nonsystematic RiskNon-Diversifiable RiskMarket / Systematic RiskDiversification Matters, Especially in Fixed-Income Investing15Diversification Matters: Contribution to Portfolio Active RiskDiversification allows for pursuit of income opportunities as well as risk protectionCurrent analysis does not guarantee future results.As at 31st March 2013Additional return for high-yield bonds may come from call premiums, change-of-control puts, tender offers, etc.Source: Barclays and AllianceBernsteinTypical Number of IssuesEuropean Income: 200 - 350American Income: 700 - 900Asia Pacific Income: 200 - 350Euro High Yield : 150 - 250Global High Yield: 1,000 - 1,200
AllianceBernstein.comThe Expert Corner:Experience, Deep Research and Proven Investment Process16Proven Investment process developed over thepast 40 yearsExperienced team of portfolio managers 22 years experience of the industry 11 years average tenure with AllianceBernstein10 fixed income quantitative analysts7 economists40 credit analystsUS$247bn billion total fixed income assetsunder managementPast performance does not guarantee future resultsAs of 31st March 2013Source: AllianceBernstein
AllianceBernstein.comThe AllianceBernstein Income Tool BoxDirect High Income and/or Balanced Income Generating Products17Current distribution yield* and monthly incomeon a €1 million investment**Global High Yield5.58%or€4,625 p.m.Past performance does not guarantee future resultsAs of 31 March 2013. Net of fees.*Distribution yields for Global High Yield Portfolio AT EUR Hedged share class, Euro High Yield Portfolio A EUR shares, American Income Portfolio AT EUR Hedged share class, European IncomePortfolio A (EUR) share class and Asia-Pacific Income Portfolio AT EUR Hedged share class. Distribution yields will vary with daily NAV and potential distribution changes by the managementcompany.**Income for a €1,000,000 investment in Global High Yield Portfolio AT EUR Hedged shares, Euro High Yield Portfolio A EUR shares, American Income Portfolio AT EUR Hedged shares,European Income Portfolio A EUR shares and Asia-Pacific Income Portfolio AT EUR Hedged shares.Source: AllianceBernsteinEuropean Income4.41%or€3,675 p.m.American Income4.19%or€3,491 p.m.Asia-Pacific Income3.72%or€3,100 p.m. Balancing higher yield andstability of invested capital Searching for higher yieldEuro High Yield5.46%or€4,550 p.m.
AllianceBernstein.comThe Expert Corner: Exposures19Willingness toBalanceIncome andStabilityGeographicalExposureExposure toHighly RatedSovereignsBondsExposure toHighly RatedCorporateBondsExposure toHigh YieldingCorporateBondsExposure toEmergingMarket DebtExposure toCMBS, CMO,ABS, BankLoansGlobal High Yield Medium Global American Income High US European Income High Europe Asia-Pacific Income High Asia Pacific Highly rated bonds providestability in adverse marketsHigh yielding bonds and bondsfrom emerging markets providehigh incomeAs of 31 March 2013Source: AllianceBernstein
AllianceBernstein.com 20Long Track Record of Delivering Attractive Income Distributions:Global High Yield, European and American Income FundsPast performance does not guarantee future results.As of 31 March 2013Net distribution yields are for the Global High Yield Portfolio USD A share class; European Income Portfolio EUR A share class; American Income Portfolio USD A share class.Source: AllianceBernsteinAmerican Income Portfolio (USD A Share Class):4.54% Net Distribution YieldEuropean Income Portfolio (EUR A Share Class):4.41% Net Distribution YieldGlobal High Yield Portfolio (USD A Share Class):5.90% Net Distribution Yield Active sector allocation and security selection usedto maintain a stable income as well as total returns Diversified credit portfolio actively managed to limitissuer-specific credit risk Track record for delivering stable, attractive yieldsacross our suite of income funds05101520250.000.020.040.060.080.1097 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12PercentInUSDMonthly Income Distribution per Fund Unit Annualized Distribution Yield0246810120.000.020.040.060.0893 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12PercentInUSDMonthly Income Distribution per Fund Unit Annualized Distribution Yield02468100.000.020.040.060.0899 00 01 02 03 04 05 06 07 08 09 10 11 12 13PercentInUSDMonthly Income Distribution Per Fund Unitp Annualized Distribution Yield
AllianceBernstein.comPast performance does not guarantee future results. Historical information provided for illustrative purposes only.As of 31 December 2012.In US dollar. Net of fees.*Assuming an investment in 208,768 Global High Yield A (USD ) shares on 31 December 2007 at a price of 4.79 each.Source: AllianceBernstein02,0004,0006,0008,000-200,000400,000600,000800,0001,000,0001,200,000Dec07Mar08Jun08Sep08Dec08Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Income ($)Growth of $1mIncome (right scale) Capital (left scale)Global High Yield PortfolioMonthly Income and Capital Value for $1 million Invested on 31 December 2007*21Global High Yield Portfolio: Distributions and Capital Over Time Capital of $985,386 at the end, but total income of $347,662 earned during the last 5 years.
AllianceBernstein.comIncome Q&A: Creating Distributions, while Maintaining Stability22How does the fund create income distributions? The fund buys bonds and receives coupons form those bonds The coupons constitute the income stream for the distributions (dividends) to investorsWhy does the amount of income change over time? The coupons available in the markets vary depending on the overall market environment A dividend distribution committee convene monthly and sometimes decides to adjust the amount paid pershare, to stay in line with coupons available in the marketsOur goal is to continue to provide stable income to our investors Maintain the balance between our search for high income and the stability of the fund Maintain the balance between maximizing distributions and minimizing changes to distributions
AllianceBernstein.comEuropean Income:71 Individual Awards/Honors fromVarious Countries Since 1999Global High Yield:80 Individual Awards/Honors fromVarious Countries Since 1999AllianceBernstein Income Platform: Award Winning “Best in Class”23 68 Lipper Fund Awards 3 Morningstar Fund Awards 2 S&P Fund Awards 2 Asia Asset Management Awards 2 Benchmark Fund of the Year Awards 2 AGEFI Asset Management Award 1 Expansion/Interactive Data Award 1 Smart Taiwan Fund AwardPast performance does not guarantee future results.As of 31 December 2012Source: AllianceBernstein 57 Lipper Fund Awards 4 S&P Fund Awards 1 Benchmark Fund of the Year Awards 1 AGEFI Asset Management Award 8 €URO Fund Awards 80 Lipper Fund Awards 4 Morningstar Fund Award 20 S&P Fund Awards 1 Benchmark Fund of the Year Awards 1 AGEFI Asset Management Award 1 South China Morning Post Award 1 €URO Fund Award 1 Austria Fund Award 1 FERI Fund AwardAmerican Income:110 Individual Awards/Honors fromVarious Countries Since 1999
AllianceBernstein.comThe Expert Corner: Dynamic Process to Deliver High Income with Stability24Translates research into portfoliosHigh Income……with StabilityQuantitativeFundamentalResearch Rates andCurrencies Credit EmergingMarkets Securitizations MunicipalsResearch Review Risk Budgeting Country/YieldCurve Sector Allocation SecuritySelection Currency Active RiskManagementPortfolioConstruction