company brand overview
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Transcript of company brand overview
Brand Identity ElementsCore Concept: Highly Engineered
Primary Color Palette
Black N Silver N
Tagline
Knowing More. Using Knowledge Better.
Events
Imagery & Graphics
Message
We strive to be the most admired financial services firm in the world.
We are fiduciary, first and foremost and our brand reflects our commitment to that responsibility.
We stand for excellence through research.
Capital Markets Outlook
There is no guarantee that any forecasts or opinions in this material will be realized. Information should not be construed as investment advice.
Equity market volatility has risen from unusual lows.
Weakness in the housing market will lead to lower inflation and lower interest rates.
Including emerging markets and other volatile sectors in a balanced portfolio can help boost long-term returns.
1Q
Investments
Investment Products Offered • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Investments
Growth Equities
Growth, InterruptedWhat Happened to the Growth-Stock Comeback?
Growth stocks lost steam in 2006, as fear overwhelmed fundamentals
Rapid earnings growth and attractive valuations make a strong case for growth stocks’ resilience
Be patient: slowing economic growth signals clearer skies ahead
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Global Wealth Management
Bernstein Journal
V O L U M E I V, N O. 2 | W I N T E R 2006
Energy: Is the Age of Petroleum Over?
> Oil’s Shifting Supply/Demand Equation
> The Transformative Potential of Hybrid Vehicles
> Will Ethanol Go Mainstream?
Retirement Planning
> Leisure Doesn’t Always Come Easy
Capital Markets
> US Current Account Defi cit: How Great a Threat to the Dollar?
Research Innovation: Knowing More…Using Knowledge Better
These remarks, delivered by Mr. Sanders at a Merrill Lynch investor conference, provide an overview of AllianceBernstein and of the major initiatives underway that will put the firm at the leading edge of innovation in asset management.
NoveMBeR 2006
Lewis A. SandersChairman and Ceo, AllianceBernstein L.P.
Global Wealth Management
Investments
The Emergence of Hybrid VehiclesWe see hybrid-power vehicles as an innovative, game-changing technology that will have a major impact over the next couple of decades
Hybrid models will eventually become the new automotive standard
The hybrid trend will have profound investment implications for many industries and companiesInvestment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Multi Media
Sub-brands
Global Wealth Management
A unit of AllianceBernstein L.P.
A subsidiary of AllianceBernstein L.P.
Investments
Investments
Internal Communications
M a s t e r B r a n d
Research Insights
Investments
Are Emerging Markets Really Different This Time?
Secular changes in emerging economies havecreated a stable foundation
Investors should carefully consider the risks andfocus on selecting the best companies
Emerging-market stocks work best when integratedinto broader global and international portfolios
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Objective
Our conference is designed to bring together leaders from academia and asset management to discuss, in an interactive format, current issues in quantitative finance.
FORMAt
For each topic, a renowned academic will lay out the controversy, followed by commentary from an institutional money manager and concluding with an interactive discussion period with the audience.
HOtel AccOMMOdAtiOns
to reserve your room at the Waldorf=Astoria: Please call 1.877.476.8792 and mention the group rate for Quant day to guarantee the special group rate of $339 (offer valid until 2/7/07)
RsvP
Please contact your bernstein salesperson or Lolita Frazier at 212.756.4154 or [email protected] by February 15 if you would like to attend. Attendance is by invitation only.
cOnFiRMed sPeAkeRs
Geert Bekaert – Dr. Bekaert is the Leon G. Cooperman Professor of Finance and Economics at Columbia business school and a Research Associate of the national bureau of economic Research
Wayne Ferson – Dr. Ferson is the John L. Collins S.J. Chair in Finance at Boston College’s Carroll School of Management and a Research Associate of the national bureau of economic Research
Campbell R. Harvey – Dr. Harvey is the J. Paul Sticht Professor of International Business at Duke University’s Fuqua School of Business and the current Journal of Finance editor
Josef Lakonishok – Dr. Lakonishok is the William G. Karnes Professor of Finance at University of Illinois at Urbana-champaign as well as ceO, ciO and Founding Partner of lsv Asset Management
Burton G. Malkiel – Dr. Malkiel is the Chemical Bank Chairman’s Professor of Economics at Princeton University and author of A Random Walk Down Wall Street
We are pleased to invite you to the fourth annual Bernstein Quantitative Research Conference
tOPics tO be discUssed*
Benchmarking and how it relates to performance evaluation and attribution, benefits of factor conditioning, potential investment opportunities resulting from China’s growth, the tactical and strategic value of commodities futures, as well as an exploration of international stock return comovements. More details about the discussion topics will be provided in subsequent mailings.
*subject to change
A subsidiary of AllianceBernstein L.P.
Thursday, March 1, 2007 The Waldorf=Astoria, 301 Park Avenue, New York
controversies in quantitative
finance & asset management
Fourth Annual
DC Plans Enter a New Era
After a 25-year-long virtual “arms race” of plan features driven by technological
innovation, provider competition and service experimentation, sponsors realize
their plans have become too complex and are not necessarily focused on what’s
best for the participants.
The Pension Protection Act of 2006 (PPA), considered “the most sweeping reform
of America’s pension laws in over 30 years,”† is pushing retirement plan design
into a new era. PPA is making it possible to revitalize plans with the features
sponsors and participants want and need, including:
Automatic enrollment
Automatic deferral increases
Simple and effective communications programs, and
Better default investment options.
Thanks to PPA provisions and a growing awareness of defi ned contribution
(DC) plan ineffi ciencies, sponsors are actively considering these and other plan
enhancements, creating unique opportunities for consultative fi nancial advisors.
Great Relationships Create Great Outcomes
Great Conversations is a simple and effective approach to selling and
servicing DC plans that:
Allows you to leverage proprietary AllianceBernstein research and expertise.
Enables you to build sponsor trust long before introducing products.
Stimulates great conversations to build plans that meet sponsor needs and help
participants reach their retirement goals.
Gives you more time to prospect for new clients and service existing clients
because AllianceBernstein has done all the back stage work for you.
In short, Great Conversations helps you build great relationships by positioning
you as an invaluable resource who sees DC plan design from the sponsor’s
unique perspective.
See inside for details.
For fi nancial representative use only. Not for inspection by, distribution or quotation to, the general public.For fi nancial representative use only. Not for inspection by, distribution or quotation to, the general public.
Investments
AllianceBernstein DC Plan ResearchAllianceBernstein built its reputation on research. The extensive research that
supports the Great Conversations Approach was conducted among sponsors and
participants of smaller, traditionally advisor-serviced defi ned contribution plans.
The results suggested that sponsors want providers to “keep it simple” and
participants want sponsors to “just do it for me.”
AllianceBernstein Investments, Inc. is an affi liate of AllianceBernstein L.P., the manager of the funds, and is a member of the NASD. AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.
For fi nancial representative use only. Not for inspection by, distribution or quotation to, the general public.
1345 Avenue of the AmericasNew York, NY 10105
1.800.227.4618
www.alliancebernstein.com
Investments
R401– 3048– 0507
An unfortunate by-product of the features arms race has been an overall decline in personal service. Sponsors want more of a human touch from their providers. Our research found that 95% of sponsors prefer that their fi nancial advisor communicate with them through face-to-face visits.Source: AllianceBernstein’s Inside the Minds of Plan Sponsors: What They Care About and Want, 2006
Great ConversationsSM
Transforming the Way Plan Sponsors Think About Their Defined Contribution Plans
Investment Products Offered
• Are Not FDIC Insured • May Lose Value
• Are Not Bank Guaranteed
For fi nancial representative use only. Not for inspection by, distribution or quotation to, the general public.
†President George W. Bush, August 17, 2006
Global Wealth Management
-annual client conference
2 0 0
盛情邀請閣下出席
聯博亞洲投資研討會越南胡志明市 2007年4月26日至29日
The Investment Professional Institute
Asia Investment Forum The Investment Professional Institute
暫定活動時間表
4月26日星期四
全天 到達 Park Hyatt Saigon 2 Lam Son Square, District 1 Ho Chi Minh City 電話: + 84 8 824 1234
19:30 – 20:15 歡迎會 Park Hyatt Saigon Poolside
20:15 – 22:00 歡迎晚宴 Park Hyatt Saigon
Ballroom
4月27日星期五
08:00 – 08:30 早餐 Park Hyatt Saigon Ballroom III
08:30 – 16:45 業務會議 Park Hyatt Saigon(請參閱隨附議程表) Ballroom I-II
Research Innovation: Knowing More…Using Knowledge Better
These remarks, delivered by Mr. Sanders at a Merrill Lynch investor conference, provide an overview of AllianceBernstein and of the major initiatives underway that will put the firm at the leading edge of innovation in asset management.
NoveMBeR 2006
Lewis A. SandersChairman and Ceo, AllianceBernstein L.P.
Global Wealth Management
The Emergence of Hybrid VehiclesEnding Oil’s Stranglehold on Transportation and the Economy
Research Conclusions
• Hybrid vehicles will significantly reduce transportation-related oil demand.
• Hybrid power will make cars faster, cleaner and safer, as well as more fuel efficient.
• The next step for hybrid vehicles will be plug-ins.
• With plug-ins, electricity rather than oil will be the primary energy source for transportation.
• Technology and utility companies will gain most; oil-related firms will lose most; leadership in hybrids will be key to success in the auto industry.
Research on Strategic ChangeJune 2006
Print Collateral
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Institutional
Black Book
AllianceBernstein Early Stage Growth Research �
Shortly after Andrew Fire and Craig Mello first dis-covered a mechanism that could be used to shut off genes in a microscopic roundworm, their breakthrough inspired a new approach to the life sciences with pro-found implications for medicine. Their research in 1998 paved the way for scientists to understand that the same process, which defends living cells against viruses, takes place inside humans. By the time Fire and Mello were awarded the Nobel Prize in 2006, the process known as RNA interference (RNAi) was being studied in lab-oratories across the world, and the possibility of apply-ing their basic research to the production of an entirely new class of drugs was looking increasingly likely.
RNAi works by tapping into a natural mechanism that defends living cells against invasion by viruses. The process can silence genes in order to thwart the transla-tion of DNA into proteins that cause or mediate diseases. Pharmaceutical companies are now making significant efforts to apply this process to drug development.
Throughout the history of the pharmaceutical industry, the vast majority of drugs have been so-called “small molecules” that tend to have a low molecular weight. Small molecules are typically made using chemistry, whether by isolating a natural compound from other chemicals or by synthesizing a new drug from smaller building blocks. This class of drugs includes aspirin (the first synthetic drug) and Pfizer’s Lipitor, which is used to lower cholesterol and generated more than $12 billion in sales in 2006.
The two other classes of drugs are referred to as “large molecules.” These include therapeutic proteins, such as insulin for diabetes and Amgen’s Enbrel for rheuma-toid arthritis, as well as monoclonal antibodies, such as Genentech’s Avastin for colon cancer. In general, large molecule therapeutics are created using biology, by inserting the genetic code for a particular protein or antibody into the DNA of bacterial or mammalian cells to produce the drug of interest. Large molecule thera-peutics are thus also known as “biologics.”
Both small and large molecule drugs have a similar modus operandi: They tend to act by attaching to “target” molecules and either activating or inhibiting their effects. For example, Lipitor blocks an enzyme inside human cells that is involved in synthesizing cholesterol; Avastin blocks a molecule called VEGF, which allows cancer cells to grow their own blood supply. Large molecules usually affect targets that reside on the surface or outside of human cells, while small molecules can penetrate the cell and attach to intracellular targets.
Many problems associated with conventional drugs are linked to the difficulties of attaching to the right target. Sometimes the target molecule that causes a disease looks very much like other, harmless molecules. Drugs that hit the wrong target often cause side effects. In addition, target molecules must be accessible, and some simply cannot be reached by a drug due to their physical characteristics.
RNA Interference: From Laboratory Tool to Potential New Drug ClassGregory RaskinHealthcare Analyst—Early Stage Growth Research
Research scientists and drug developers worldwide are exploring a new medical technology that has the poten-
tial to transform the pharmaceutical industry. RNA interference, a technology discovered within the last decade
and awarded the 2006 Nobel Prize in Medicine, may create an entirely new class of drugs in the $500 billion
global pharmaceutical market. While the first patients have just been dosed in clinical trials—and commercial
sales are still years away—RNA interference has the potential to attack previously untreated disease targets,
save drug development time and costs, and reduce unwanted side effects and toxicities.
Table of Contents
Introduction 1Jamie Kiggen—Director of Research
Life Sciences
RNA Interference 3Gregory Raskin—Healthcare Analyst
Gene Sequencing 8Rich Troyer—Healthcare Analyst
Personalized Medicine 13Rich Troyer—Healthcare Analyst
Microfluidics 20Gregory Raskin—Healthcare Analyst
Information Technology/Digital Media
Radio Frequency Identification (RFID) 24So Young Lee—Technology Analyst
Wireless Broadband 29Mark Mackenzie—Digital Media Analyst
Servers and Storage 39Krishna Rangarajan—Technology Analyst
Open Source Software 45Krishna Rangarajan—Technology Analyst
Alternative Energy
Renewable Energy in China 51Bin Sun—China Energy Analyst
Hybrid Vehicle Batteries 58Walt Vester—Energy Analyst
Alternative Transportation Fuels 66Walt Vester—Energy AnalystBin Sun—China Energy Analyst
AllianceBernstein’s Early Stage Growth Team 74
Discovering InnovationInsights from Early Stage Growth Research
Technological change is rapidly transforming an array of multibillion dollar industries. Our Early Stage Growth team has mapped out the investment implications of 11 important developments in life sciences, information technology and alternative energy, analyzing innovations that could affect major markets and billions of people around the world.
Early Stage Growth ResearchJuly 2007
INS–3509–0607 www.alliancebernstein.com/institutional
© 2007 AllianceBernstein L.P.
Note to All Readers: This publication is meant for institutional investors only. The information contained herein ref lects, as of the date hereof, the views of AllianceBernstein L.P. and sources believed by AllianceBernstein to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein. In addition, there can be no guarantee that any projection, forecast or opinion in these materials will be realized. The views expressed herein may change at any time subsequent to the date of issue hereof. These materials are provided for informational purposes only, and under no circumstances may any information contained herein be construed as investment advice. Neither may any information contained herein be construed as any sales or marketing materials in respect of any financial instrument, product or service sponsored or provided by AllianceBernstein L.P. or any affiliate or agent thereof. References to specific securities are presented solely in the context of industry analysis and are not to be considered recommendations by AllianceBernstein. AllianceBernstein and its affiliates may have positions in, and may effect transactions in, the markets, industry sectors and companies described herein. This document is not an advertisement and is not intended for public use or additional distribution.
Note to Canadian Readers:Neither AllianceBernstein nor AllianceBernstein L.P. provides investment advice or deals in securities in Canada. This publication is provided by AllianceBernstein Canada, Inc. or Sanford C. Bernstein & Co., LLC.
Note to UK Readers:This document is issued in the United Kingdom by AllianceBernstein Limited, authorised and regulated by the FSA. This document is directed at Intermediate Customers (as defined in FSA’s rules), and the products and services as described are only available to such customers. This document is not directed at Private Customers, and no reliance should be placed on its contents by Private Customers.
Note to Japanese Readers:This document has been provided by AllianceBernstein Japan Ltd. (“ABJ”). ABJ is a registered investment advisor (registration number: Kanto Financial Bureau Chief no. 848) with approval to conduct the discretionary investment advisory business (approval number: Financial Reconstruction Committee no. 22). It is also a member of Japan Securities Investment Advisers Association (membership no. 011-00848).
Note to Australian and New Zealand Readers: This document has been issued by AllianceBernstein Australia Limited (ABN 53 095 022 718 and AFSL 230698) and AllianceBernstein New Zealand Limited (AK 980088). AllianceBernstein disclaims any liability for damage or loss arising from reliance upon any matter contained in this document except for statutory liability that cannot be excluded.
Note to Singapore Readers:This document has been issued by AllianceBernstein (Singapore) Ltd. AllianceBernstein (Singapore) Ltd. is a holder of a capital-markets services license issued by the Monetary Authority of Singapore to conduct regulated activities in fund management and dealing in securities.
AllianceBernstein L.P. 1345 Avenue of the Americas, New York, NY 10105212.969.1000
AllianceBernstein Japan Ltd.Ohtemachi First Square West Tower 12F, 1-5-1 OhtemachiChiyoda-ku, Tokyo 100-0004, Japan+81 3 3240 8500
AllianceBernstein Hong Kong LimitedSuite 3401, 34/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong+852 2918 7888
AllianceBernstein (Singapore) Ltd.No. 30 Cecil Street, #28-01, Prudential Tower, Singapore 049712+65 6230 4686Company Registration No. 199703364C
AllianceBernstein Limited Devonshire House, One Mayfair Place, London W1J 8AJ, United Kingdom+44 20 7470 0100Registered in England, No. 2551144, Regulated by FSA
AllianceBernstein Australia Limited Level 37, Chifley Tower, 2 Chifley Square, Sydney, NSW 2000, Australia+61 2 9247 9766
AllianceBernstein New Zealand LimitedLevel 13, ASB Harbour Tower, 2 Hunter Street, Wellington, New Zealand+64 4 471 1626
AllianceBernstein Canada, Inc.BCE Place, 161 Bay Street, 27th Floor, Toronto, Ontario M5J 2S1 416.572.2335
Sanford C. Bernstein & Co., LLC1345 Avenue of the Americas, New York, NY 10105212.969.1000
insertunion bug
Early Stage Grow
th Research |July 2007 D
iscovering Innovation
May 2007 �
If plan sponsors do deem growth investing to be worthwhile, within the growth spectrum it might seem preferable to skew toward growth-at-a-reason-able-price (GARP) managers, given the value elements of this substyle. However, it could be argued that the forces underlying value’s tendency to outperform over history have done their job so well that they have driven markets to a point of equilibrium, where value no longer has an inherent advantage and growth no longer has a secular tendency to underperform. Under such a scenario, style cycles going forward would f luctuate from a starting point that is more stable than in the past. Plan sponsors may need to rethink what point along the growth-manager spectrum would be most desirable for this new environment.
Suggesting that growth can no longer underperform may seem bold considering the beating the style has taken at the index level over the past seven years. It’s even bolder considering growth’s long-term underperformance as a style: For example, the Russell 1000 Growth Index has underperformed the Russell 1000 Value Index over their entire history of almost 30 years (Display 1). If the client
benchmark that growth managers use to define their universe is inferior, as the long-term performance would suggest, won’t the universe derived from it be inherently inferior as well, leading to a fundamental disadvantage for growth investors?
Remember that we are talking about indices at this point; the story is different when we get to active managers later in this paper. However, there is a strong argument that growth indices are inferior: They are typically constructed from underperforming factors. Most style benchmarks were originally constructed by dividing a broad universe in half based on price-to-book, putting the most expensive stocks in growth and the least expensive in value. This methodology placed the growth index at a built-in disadvantage, since expensive stocks tend to underperform cheap ones (Display 2, next page, top). In 1995, Russell attempted to do a better job of ref lecting what a growth manager actually looks for by adding long-term growth expec-tations as another factor to define style indices. Still, this characteristic also has a fundamental f law. High-forecast-growth stocks are also likely to disappoint, since they represent the companies most vulnerable to mean reversion. Consequently, a high-forecast-growth index will also tend to underperform one built from low forecast growth (Display 2, bottom).
If we believe that growth indices have been inherently disadvantaged, why would we suddenly suggest that they may be running out of room to underperform? What’s changed? Primarily, the fact that growth stocks may be priced at previously uncharted lows, not only relative to their own history, but more importantly relative to value stocks. Unjustified excesses appear to have been wrung out of the system. In fact, valuation spreads have collapsed to levels seemingly near their practical limits.
Nowhere to Go but UpHas the Growth Style’s Long-Term Disadvantage Come to an End?
Paul C. Rissman, Chief Investment Officer—Alliance Growth Equities
Perceived wisdom has been that, over time, value as a style outperforms growth, and the entire history of
style indices bears out this premise. This fact may prompt some plan sponsors to question whether it’s worth
investing in growth at all.
About the Author
Paul C. RissmanChief Investment Officer—Alliance Growth Equities
Mr. Rissman was named CIO of Alliance Growth Equities
in 2007. He has been a member of the firm’s Executive
Committee since 2000, served as Director of Global Growth
Research from 2000 through 2006, and additionally headed
Alliance Growth Equities since 2004 until assuming the CIO
title. He had founded the US Relative Value service in �995
and continued heading its investment team until June 2004.
Mr. Rissman joined the firm as a quantitative analyst in �989,
and became a research analyst responsible for telecom from
�99� to �994. Prior to joining the firm, he taught at New
York University.
Mr. Rissman received his BA and PhD (anthropology) from
the University of Pennsylvania and an MBA from Columbia
Business School. CFA Charterholder.
Display �
The Value Index Has Outperformed the Growth Index Historically
Index Returns1979–2006
11.9%14.6%
Russell 1000Value
Russell 1000Growth
Source: Russell Investment Group
May 2007
Paul C. Rissman Chief Investment Officer—Alliance Growth Equities
Growth-stock indices have underperformed value-stock
indices since they were launched in the late 1970s, leading
many to see the growth style as permanently disadvantaged.
Evidence suggests, however, that the excesses underlying this
performance differential may no longer be present. Future style
cycles would therefore be expected to fluctuate around a style-
neutral equilibrium, in contrast to the past’s style-biased result.
The factors driving manager success in the growth domain can
be expected to shift as a result of these new dynamics.
Nowhere to Go but UpHas the Growth Style’s Long-Term Disadvantage Come to an End?
White Paper
INS-
3652
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Hotel Accommodation Information
For your convenience, we have reserved a block of rooms at the Four Seasons Resort and Club. Please see details below to obtain reservations at a special rate.
FOUR SEASONS RESORT AND CLUBDallas at Las Colinas
4150 North MacArthur BoulevardIrving, Texas 75038Tel: 972.717.0700Rate: $280 per night
When calling, please indicate that you are with the AllianceBernstein Defined Contribution Symposium group. Please make your hotel reservations by Monday, September 10, 2007.
Alternate hotel accommodations are available at the Hilton Garden Inn Las Colinas, 972.444.8434 and at the Wyndham Las Colinas, 972.650.1600.
Strategies for Improving Retirement Outcomes
Playing by the New Rules
1345 Avenue of the AmericasNew York, NY 10105 union BuG
2007 DEFINED CONTRIBUTION SYMPOSIUM
Topics for DiscussionWhat Happens After Retirement? Turning Assets into Income John D. Curry, Head of Individual Retirement Services—AllianceBernsteinThis panel discussion will address the withdrawal phase of the savings lifecycle, when defined contribution plan participants are retired. It will cover ways to educate employees about the impact of withdrawal rates on their retirement nest egg and review currently available and potential product innovations designed to provide income for life.
Update on Behavioral Finance: The Psychological and Economic Foundations of Retirement Savings OutcomesDavid I. Laibson PhD, Professor of Economics—Harvard UniversityThis session will review the empirical evidence on the effects of default investment options on participation, savings rates, asset allocation and distributions. It will also discuss why default options have such an enormous impact on participant outcomes and how defaults should be chosen to maximize the well-being of participants.
Enrollment Initiatives to Improve Plan ParticipationSharon French, Managing Director, Defined Contribution Business Development & Client Relations—AllianceBernsteinThis panel will address an array of best practices related to enrollment, re-enrollment, mapping over of investments, participant communications, plan website design, etc.
Playing by the New RulesSeth J. Masters, Chief Investment Officer—AllianceBernstein Blend StrategiesMany DC plan sponsors have revamped their game plans in the year since the passage of the Pension Protection Act of 2006 and the release of proposed qualified default investment regulations by the DOL. In fact, enrollment practices, investment menus, default options, and fee disclosures have probably changed more in the last 12 months than in the previous five years. As the new rules are clarified and plans build more experience playing by them, we expect more changes in the decade ahead.
Inside the Washington Beltway: A Retirement Policy UpdateLaurence E. Cranch, General Counsel—AllianceBernsteinJames M. Delaplane Jr., Partner—Davis & Harman LLPDaniel A. Notto, JD, CPC, Senior Retirement Plan Counsel—AllianceBernstein The Pension Protection Act of 2006 has caused many plan sponsors to reassess the ways in which their plans are managed. This session will provide a Washington-insider’s perspective on recent DC class action lawsuits, Congressional fee hearings and expected legislation, as well as other important initiatives by the Department of Labor, Treasury and IRS. In addition, AllianceBernstein will share the insights we gained from working with plan sponsors on the impact these changes are having on fiduciary liability standards.
Attacking Defined Contribution Plan Costs Richard A. Davies, Head of Defined Contribution Services—AllianceBernstein How do plan sponsors begin to prepare for the DOL fee disclosure initiatives and the resulting increased scrutiny their plans will face? This session will address best practices related to the unbundling of recordkeeping from the investment-selection process, the use of institutional investment vehicles, fee transparency, participant disclosure and efficient operations.
When and How to Customize a Target-Date Portfolio Thomas J. Fontaine, Director of Research—AllianceBernstein Blend StrategiesTarget-date portfolios are designed with the typical participant and plan in mind, but sometimes participant circumstances really are different—such as when most participants have a significant portion of their assets in company stock or when they have a well-funded DB plan. This session will also address whether alternative investments and other illiquid assets have a role in a customized target-date offering.
Defined Contribution Plan Innovation: Plan Sponsor Case StudiesJohn Akkerman, CFA, Head of North American Institutions—AllianceBernstein In this panel, plan sponsors and consultants who are implementing innovative Defined Contribution plan structures will describe why and how they made these changes and the practical lessons they learned. In addition, we will share AllianceBernstein’s proprietary research into how Defined Contribution plan priorities are changing.
ABOUT OUR GUEST SPEAKER
Fareed Zakaria is the author of The Future of Freedom: Illiberal Democracy at Home and Abroad (April 2003), and From Wealth to Power: The Unusual Origins of America’s World Role (July 1999) and the editor of Newsweek International. He writes a column that appears in the national edition of Newsweek, Newsweek International and, often, The Washington Post, which makes it one of the most widely circulated political columns in the world.
Mr. Zakaria also offers political analysis on the ABC television show This Week and several other ABC News programs, and has been a guest on such TV programs as Charlie Rose, Firing Line, The News Hour with Jim Lehrer, The McLaughlin Group,BBC World News and Meet the Press.
Mr. Zakaria was born in India and has a BA from Yale (in history) and a PhD from Harvard (in international relations).
2007 DEFINED CONTRIBUTION SYMPOSIUM
Playing by the New Rules Strategies for Improving Retirement Outcomes
October 4–5, 2007Four Seasons Resort and ClubDallas at Las Colinas
Thursday, October 4, 2007
7:00 am Registration and Welcome Breakfast
8:15 am Symposium Begins
Noon Luncheon
4:30 pm Day One’s Sessions Conclude
6:00 pm Cocktails and Dinner with Guest Speaker
Friday, October 5, 2007
8:00 am Day Two Begins
Noon Symposium Concludes
If you’re arriving on Wednesday evening, October 3rd, please join us for a cocktail reception with hors d’oeuvres from 5:30–7:30 pm.
RSVP by contacting Meghann McLaughlin at 212.756.4075 or via e-mail at [email protected] by Monday, September 17, 2007.
Business casual attire. Please see reverse of invitation for hotel information.
Invitation
Defined Contribution Symposium
Retail
Investments
Fixed IncomeMUTUAL FUNDS
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
High-Yield Municipal BondsAre They Worth the Risk?
High-yield municipal bonds are riskier than many investors realize
Despite their popularity, they have more downside than upside at current prices
It’s best to own them as a limited portion of a diversified municipal portfolio
Investments
AllianceBernstein Mutual Fund Fact SheetsFirst Quarter 2007
Performance
Top Holdings
Sector/Country Allocations
Security/Quality Breakdowns
Portfolio Strategies
1Q
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Mary Kralis Hoppe, Director
617-965-1882
Steven Pavlovic, Senior Internal Sales Consultant
800-247-4154 ext 3241
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
> Blend Strategy Funds
> Retirement Strategies
> Education Strategies
For financial representative use only. Not for inspection by, distribution or quotation to, the general public.
4Q
> Growth: Domestic, Global and International
> Value: Domestic, Global and International
> Fixed Income: Taxable Bond, Municipal Bond and Intermediate Municipal Bond
AllianceBernstein Fund Performance GridsFourth Quarter 2006
Investments
Mutual Fund Performance at a GlanceFirst Quarter 2007
1Q
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Retail
Firm Capabilities Platform Capabilities Product
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Research Insights
Investments
The Effective Client Review
> Front stage advisors play a critical role of professional communicator
> The annual client review is one of their most important communications tools
> Effective client reviews enhance client service and can make client outreach more effective
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
For financial representative use only.
Research Insights
Investments
Fortune or MisfortuneDesigning an Investment Plan That Meets Your Goals
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
Research Insights
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Are Emerging Markets Really Different This Time?> Secular changes in emerging economies have created a stable
foundation
> Investors should carefully consider the risks and focus on selecting the best companies
> Emerging-market stocks work best when integrated into broader global and international portfolios
Research Insights
Investments
The Front Stage Advisor
> Many advisors are looking for strategies to reenergize their practice growth
> Front Stage Advisor leverages the best practices of top advisors in building more efficient and effective practices
> A better practice and a commitment to serving your clients can help put you on the path to success
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
For financial representative use only.
Retail
Retail
Research Insights
Investments
The Effective Client Review
> Front stage advisors play a critical role of professional communicator
> The annual client review is one of their most important communications tools
> Effective client reviews enhance client service and can make client outreach more effective
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
For financial representative use only.
Research Insights
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Enhancing Investor Outcomes:Factoring Health Care intoDistribution Planning
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
Research Insights
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Enhancing Investor Outcomes:Factoring Health Care intoDistribution Planning
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
Research Insights
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Are Emerging Markets Really Different This Time?> Secular changes in emerging economies have created a stable
foundation
> Investors should carefully consider the risks and focus on selecting the best companies
> Emerging-market stocks work best when integrated into broader global and international portfolios
8-12 page Spread 6 page Spread
Many advisors face slow—or no—business growth in today’s financial services industry.
Thought Leadership �
Slower Growth is a Growing Challenge
The financial services industry has seen great changes in the last two decades, and many
financial advisors face a difficult environment with slowing and stagnant business growth.
Success Is Harder to Find
It’s not easy to become a financial advisor. Because it’s
such a challenging role, it usually attracts fiercely
independent people who—given their “entrepreneurial
inclination”—are highly practical and opportunity-driven.
Their attitudes range from “if it ain’t broke don’t fix it” to
“if it works, do more of it.” But with the financial landscape
undergoing radical changes over the past 20 years, this
approach has become harder to justify—and success has
become harder to attain.
Flattening Growth Curves
In the �980s and �990s, Baby Boomers in their mid-30s
helped fuel explosive growth in the financial services industry
and spawned a generation of advisors, authors and gurus
with books, magazines, educational workshops and
telemarketing tactics.
This has led to a more sophisticated investment consumer
and—thanks to volatile markets—a more anxious one.
Today’s investor has greater expectations, greater service
demands, and pressures advisors to lower fees and
commissions.
Traditional “brute-force” marketing techniques don’t work
anymore. Investors have simply become numb to cold calls,
free seminars about general topics or magazine and
newspaper advertisements. Many advisors are frustrated
as they look for new clients: their business-growth curves
are flattening or, in some cases, negative.
Too Many Clients
Time
Grow
th
Too many clients
Little or no growth
+Too little outreach
More clients = more time and effort spent servicing
Many advisors reach a painful equilibrium, with servicing and client relationship management consuming most of their energy and little time to engage in new-client outreach activities.
Building the Foundation for Success
At AllianceBernstein Investments, we’ve researched the best practices of successful financial advisors
at Bernstein Global Wealth Management and our partner firms. Our goal was to create a program that
would help other advisors follow the same path to success.
We designed the Front Stage Advisor program to show you how to make your process more efficient,
by delegating and automating the “backstage” activities of your advisory practice.
A more efficient practice will allow you to offer a better value proposition to your clients, prospects and
the centers of influence who serve as referral sources. You can become a trusted advisor by providing
unparalleled service and creating deeper relationships.
This will do more for your practice than improve client retention—it also reflects on your new-client
outreach efforts, and with a more efficient practice, you’ll have more time to employ effective client-
outreach principles.
Front stage advisors set the stage for their own success by dedicating themselves to serving the needs
of their clients. They instill in their clients the confidence to focus on the long term and follow
disciplined strategies designed to help them reach their goals.
By building a more efficient and effective practice and dedicating yourself to helping your clients
achieve peace of mind, we believe you can put yourselves on the Front Stage path to success.
Bonds can confuse experienced and novice investors alike—we’ve designed this guide to
help you understand fixed-income investing.
what should go here? �
Demystifying Fixed-Income Investing
Bonds are cornerstones of well-diversified portfolios, but they come in many different
forms and they’re not so easy to understand. We designed this guide to cut through the
complexity of bonds and fixed-income investing.
Making Bonds Easier to Understand
Fixed income—bonds—can confuse experienced and
novice investors alike. Bonds come with a wide variety of
features and attributes, and there are more of them every
day as the number of bond products continues to grow. To
get comfortable with bonds, there’s plenty you need to
know.
We’d like to make fixed-income investing easier for you
to understand. Our goals in this guide are to:
Describe bonds’ fundamental characteristics
Explain the benefits of including fixed income in your
investment strategy
Help you make well-informed fixed-income choices
We’ve also provided a glossary on pages �� and �2 that
you can refer to for an explanation of particular words or
concepts.
What’s a Bond?
A bond is an investment security that functions like a loan.
When governments want to finance public works projects
and companies want to raise money for big capital
expenditures like building new offices, they turn to
investors by selling bonds.
Essentially, the investor lends money to the bond issuer in
exchange for a specific rate of interest (known as the
coupon rate) to be paid at specific intervals, and for the
bond’s principal (face value) to be repaid at a designated
time in the future.
Bonds are like stocks to the extent that they both channel
investor money to the issuer and trade daily. But that’s
where the similarities end: stocks are shares of ownership
in the issuing company, don’t have to pay income, are held
primarily to make a profit, and have no maturity date.
� Building Better Portfolios: The Upside and Downside of Growth Managers
Upside/Downside: Growth Managers Can’t Have It Both Ways
The complementary nature of growth and value has made
them an effective combination historically. Growth managers
tend to have stronger upside capture ratios than value
managers but suffer more deeply when markets turn down.A
growth manager that could combine high upside capture and
low downside capture would seem to be a good find, indeed.
Unfortunately, they’re nearly impossible to find. Growth
managers with high upside ratios nearly always have high
downside ratios, and growth managers with low upside
capture nearly always have low downside capture.When it
comes to upside and downside, growth managers can’t have
it both ways.
High-Conviction Growth: Better Up-Market Capture
Of course, there’s more than one type of growth manager.At one
end of the spectrum are “high-conviction” managers, style-
intense managers with a high beta to their growth benchmark.
Managers who follow a “growth at a reasonable price”, or
GARP, approach are at the other end of the spectrum.They
take a much more conservative approach, which their low
beta confirms.
While each approach has been effective, high-conviction growth
managers capture more of both rising and falling markets. GARP
managers try to get the best of both worlds by straddling both
styles.As result, they usually capture less of both up and down
markets than high-conviction managers do.
Upside Capture Isn’t the Samefor Every Growth Manager
Adding a high-conviction growth manager to your client’s portfolio can result in a more
effective combination of upside and downside capture.
The “physical law” of capture ratios: there’s a powerful relationship between the size of a manager’s upside and downside ratios.
Historical analysis does not guarantee future results. An investor cannot invest directly in an index. See index descriptions onback panel.*111 Large Cap Growth Managers with a 10-year track record wereanalyzed; Q1 Managers are those in the top 25% (28 managers) with a10-year track recordThrough December 31, 2006Source: Lipper and AllianceBernstein
High-conviction growth managers have bigger capture ratios than “GARP” managers—in both directions.
Historical analysis does not guarantee future results. An investor cannot invest directly in an index. See index descriptions onback panel.*First quartile managers with a 10-year track record.Through December 31, 2006Source: Lipper and AllianceBernstein
Market Insights Exploring the opportunities
and risks of the world’s capi-tal markets and the innovationsthat can reshape them
At AllianceBernstein we think differently — withmore than 250 analysts and450 investment professionalsin 24 countries we see marketsand the forces that shape themfrom a unique perspective
To gain insight from our perspective on the investmentlandscape and the impact ofinnovation over time, contactyour financial advisor or visitwww.alliancebernstein.com
Innovative programsdesigned to help you redefine your advisory business and reach new levels of success
Sound, actionable strategiesbased on our proprietary research and insights into effective practice management
A comprehensive, intensivecurriculum delivered by experienced and trained specialists
Lessons learned from the industry’s top performers, including advisors from Bernstein’s Global Wealth Management Group
For financial representative use only. No part of this publication may be copied without written permission of AllianceBernstein Investments.
We’ve designed the following programs to be delivered by
ABI specialists for 25–40 participants in an off-site venue.
The Masters Program in Client Acquisition
This program, based on AllianceBernstein’s coaching work
with top performers nationwide and observations of the
Bernstein Private Client Group, introduces a comprehensive
model of practice management and new client outreach
strategies. This eight-hour training event is designed to
be delivered in two four-hour components and includes
program pre-work and follow-up coaching delivered by
AllianceBernstein Regional Managers. Program content
includes:
The Differences That Make a Difference
Building a Complete Value-Driven Business Model
Target Marketing and Your Unique Value Proposition
Why Do Professionals Refer? Why Do Professionals
Refuse to Refer?
The Six-Stage Outreach Process to CPAs and Attorneys
Four Steps to Advancing the Conversation with
Professionals
The Art of the Close: Developing a Personal Pitch Book
Capacity Killers: Six Common Practice Management
Challenges
Eight Reasons Advisors Fail to Execute
Specialized TrainingDelivered by the Advisor Institute
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Enhancing Investor Outcomes:Factoring Health Care intoDistribution Planning
Research Insights
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
Research Insights
Investments
The Front Stage Advisor
> Many advisors are looking for strategies to reenergize their practice growth
> Front Stage Advisor leverages the best practices of top advisors in building more efficient and effective practices
> A better practice and a commitment to serving your clients can help put you on the path to success
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
For financial representative use only.
�Focus on overall results,not individual parts. Whatultimately matters is whether your portfolio grows, not how its individual parts perform.
�Low- or negatively corre-lated assets are good.When the building blocks of your portfolio tend to move in different directions, it can help minimize your portfolio’s overall volatility.
Systematically rebalanceyour portfolio. Rebalancingtakes advantage of low or negative correlation. It can help maximize long-term returns as a built-in way to buy low and sell high.
Effective diversificationmeans that not all invest-ments will By definition, a well-diversified portfolio holds assets that are out of favor. Since returns eventually revert to their historical averages.
We’ve designed the following programs to be delivered by
ABI specialists for 25–40 participants in an off-site venue.
The Masters Program in Client Acquisition
This program, based on AllianceBernstein’s coaching work
with top performers nationwide and observations of the
Bernstein Private Client Group, introduces a comprehensive
model of practice management and new client outreach
strategies. This eight-hour training event is designed to
be delivered in two four-hour components and includes
program pre-work and follow-up coaching delivered by
AllianceBernstein Regional Managers. Program content
includes:
The Differences That Make a Difference
Building a Complete Value-Driven Business Model
Target Marketing and Your Unique Value Proposition
Why Do Professionals Refer? Why Do Professionals
Refuse to Refer?
The Six-Stage Outreach Process to CPAs and Attorneys
Four Steps to Advancing the Conversation with
Professionals
The Art of the Close: Developing a Personal Pitch Book
Capacity Killers: Six Common Practice Management
Challenges
Eight Reasons Advisors Fail to Execute
Specialized TrainingDelivered by the Advisor Institute
For financial representative use only. No part of this publication may be copied without written permission of AllianceBernstein Investments.
Bonds can confuse experienced and novice investors alike—we’ve designed this guide to
help you understand fixed-income investing.
what should go here? �
Demystifying Fixed-Income Investing
Bonds are cornerstones of well-diversified portfolios, but they come in many different
forms and they’re not so easy to understand. We designed this guide to cut through the
complexity of bonds and fixed-income investing.
Making Bonds Easier to Understand
Fixed income—bonds—can confuse experienced and
novice investors alike. Bonds come with a wide variety of
features and attributes, and there are more of them every
day as the number of bond products continues to grow. To
get comfortable with bonds, there’s plenty you need to
know.
We’d like to make fixed-income investing easier for you
to understand. Our goals in this guide are to:
Describe bonds’ fundamental characteristics
Explain the benefits of including fixed income in your
investment strategy
Help you make well-informed fixed-income choices
We’ve also provided a glossary on pages �� and �2 that
you can refer to for an explanation of particular words or
concepts.
What’s a Bond?
A bond is an investment security that functions like a loan.
When governments want to finance public works projects
and companies want to raise money for big capital
expenditures like building new offices, they turn to
investors by selling bonds.
Essentially, the investor lends money to the bond issuer in
exchange for a specific rate of interest (known as the
coupon rate) to be paid at specific intervals, and for the
bond’s principal (face value) to be repaid at a designated
time in the future.
Bonds are like stocks to the extent that they both channel
investor money to the issuer and trade daily. But that’s
where the similarities end: stocks are shares of ownership
in the issuing company, don’t have to pay income, are held
primarily to make a profit, and have no maturity date.
One of investing’s timeless principles is to buy low, and sell high. However, when it
comes time to do so, many investors fi nd it very diffi cult to adhere to that tenet.
Recently, AllianceBernstein surveyed 1,000 investors on this very topic.*
> 61% confessed that it’s harder to sell a winning investment than
ask for driving directions.
> 52% admitted to having trouble sticking to an asset allocation
program during market gyrations.
What’s at play is a phenomenon called “loss aversion.” And here’s how it works:
> Buying low entails investing in a security that is underperforming—some
might call it a loser.
> Investing in a stock that’s lagging, regardless of its potential to grow,
is not a comfortable feeling. We all want to be aligned with the winners.
> It’s also a common impulse to want to rid your portfolio of the investments you
perceive to be the “losers.” It’s basic human nature to dislike losing money; no one
wants to see their investments decline.
> For most of us, the pain of a given loss signifi cantly exceeds the pleasure of an
equivalent gain.†
The Result?
We sell low, and we buy high, and never reap the potential benefi ts we should
from our investments.
Loss Aversion
Making Emotional Decisions Can Undermine Your PortfolioSometimes the decisions we make about our investments are driven by how we feel rather than what we know are sound investment choices.
Loss Aversions
Loss Gain
Pleasure
Pain
Big Pain
Small Pleasure
* Source: Telephone survey conducted by Mathew Greenwald & Associates, Inc., on behalf of AllianceBernstein Investments, Inc. We conducted telephone interviews with 1,000 investors in 2005. All investors surveyed were solely or jointly responsible for making fi nancial and investment decisions for their households, had a household income of $75,000 or more and household investable assets of $75,000 or more.
† Source: National Bureau of Economic Research, A Study of Behavioral Finance—Working Paper 9222. ©2002, Nicholas Barberis and Richard Thaler.
Research InsightsInvestments
Capital Markets Outlook
Equity market volatility has risen from unusual lows.
Weakness in the housing market will lead to lower infl ation and lower interest rates.
Including emerging markets and other volatile sectors in a balanced portfolio can help boost long-term returns.
Investments
CMOGuidebook 2-4 page E-mail
Research Insights
Investments
Fortune or MisfortuneDesigning an Investment Plan That Meets Your Goals
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
Research Insights
Investments
Investment Products Offered
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Enhancing Investor Outcomes:Factoring Health Care intoDistribution Planning
> A sound investment plan can mean the difference between fortune and misfortune
> Work with an advisor to define your long-term financial goals—and an asset allocation that makes sense
> Build a diversified portfolio and help keep it on track with a disciplined rebalancing approach
�Combining the worlds of goal-based financial planning and portfolio construction to help investors achieve better outcomes
For more informationon building better portfolios, contact your AllianceBernstein Regional Manager or visit www.alliancebernstein.com
At AllianceBernstein weunderstand the importance of considering all aspects of a long- term plan – we’ve honed our insights over four decades of working with private clients
We’ve designed the following programs to be delivered by
ABI specialists for 25–40 participants in an off-site venue.
The Masters Program in Client Acquisition
This program, based on AllianceBernstein’s coaching work
with top performers nationwide and observations of the
Bernstein Private Client Group, introduces a comprehensive
model of practice management and new client outreach
strategies. This eight-hour training event is designed to
be delivered in two four-hour components and includes
program pre-work and follow-up coaching delivered by
AllianceBernstein Regional Managers. Program content
includes:
The Differences That Make a Difference
Building a Complete Value-Driven Business Model
Target Marketing and Your Unique Value Proposition
Why Do Professionals Refer? Why Do Professionals
Refuse to Refer?
The Six-Stage Outreach Process to CPAs and Attorneys
Four Steps to Advancing the Conversation with
Professionals
The Art of the Close: Developing a Personal Pitch Book
Capacity Killers: Six Common Practice Management
Challenges
Eight Reasons Advisors Fail to Execute
Specialized TrainingDelivered by the Advisor Institute
For financial representative use only. No part of this publication may be copied without written permission of AllianceBernstein Investments.
Planning Insights
Bonds can confuse experienced and novice investors alike—we’ve designed this guide to
help you understand fixed-income investing.
what should go here? �
Demystifying Fixed-Income Investing
Bonds are cornerstones of well-diversified portfolios, but they come in many different
forms and they’re not so easy to understand. We designed this guide to cut through the
complexity of bonds and fixed-income investing.
Making Bonds Easier to Understand
Fixed income—bonds—can confuse experienced and
novice investors alike. Bonds come with a wide variety of
features and attributes, and there are more of them every
day as the number of bond products continues to grow. To
get comfortable with bonds, there’s plenty you need to
know.
We’d like to make fixed-income investing easier for you
to understand. Our goals in this guide are to:
Describe bonds’ fundamental characteristics
Explain the benefits of including fixed income in your
investment strategy
Help you make well-informed fixed-income choices
We’ve also provided a glossary on pages �� and �2 that
you can refer to for an explanation of particular words or
concepts.
What’s a Bond?
A bond is an investment security that functions like a loan.
When governments want to finance public works projects
and companies want to raise money for big capital
expenditures like building new offices, they turn to
investors by selling bonds.
Essentially, the investor lends money to the bond issuer in
exchange for a specific rate of interest (known as the
coupon rate) to be paid at specific intervals, and for the
bond’s principal (face value) to be repaid at a designated
time in the future.
Bonds are like stocks to the extent that they both channel
investor money to the issuer and trade daily. But that’s
where the similarities end: stocks are shares of ownership
in the issuing company, don’t have to pay income, are held
primarily to make a profit, and have no maturity date.
Investments
Investment Products Offered • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
Research Insights
Spending Time with Wealth ForecastingAsset allocation is a major focus of many investors’ plans, but there’s often a missing link—spending plans can often have a bigger impact in determining success or failure.
Will Your Clients Run Out of Money?
Wealth forecasting simulations are invaluable in helping your
clients reach informed decisions. With the output from these
analyses, you’ll be able to help your clients “pre-experience”
financial outcomes, helping them to see the impact of their
decisions on their likelihood of success.
The table below demonstrates this type of analysis. It illustrates
the impact of different combinations of spending and portfolio
allocations on a hypothetical client’s odds of success. For
example, a 5% spending level combined with a 60% equity
allocation results in a 62% chance that the client will make it
through 30 years without running out of money.
Spending And Asset Allocation: Odds of Success
3%
4%
5%
6%
7%
8%
Spending
0% Equities 20% Equities 40% Equities 60% Equities 80% Equities 100% Equities
>98% >98% >98% >98% 98% 96%
68 85 88 89 87 84
11 38 55 62 65 64
<2 5 20 33 41 45
<2 <2 5 14 23 29
<2 <2 <2 5 12 17
Spending refers to withdrawals adjusted for taxes and infl ation and is modeled as a percentage of initial portfolio value increased for infl ation over time.
Defined Contribution
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Meeting & Event Center
The Exchange
“�Client service is all about continually reinforcing to the client that they made a good choice when they hired us.”
—�John�J.�Burgdorfer��Managing�Director—Strategic�Accounts
Best�Practices�> Tips for Effective Client Service
Best PracticesLiterature Live On Boarding
February 2007
On Boarding Program
Creating the Most Admired
Investment Firm in the World
Disc 1: ResearchIntroduction ...................................................................... 2:24Lew Sanders, Chairman and Chief Executive Officer
Value Investing ............................................................... 13:27Marilyn Fedak, Head of Bernstein Global Value
Growth Investing ............................................................ 13:05Paul Rissman, Director of Research for Global Growth Equities
Fixed Income Investing.................................................... 11:21Doug Peebles, Chief Investment Officer and Co-Head, Fixed Income
Blend Investing .................................................................8:34Seth Masters, Chief Investment Officer, Blend Strategies
Research on Strategic Change .......................................... 7:52Amy Raskin, Director of Research on Strategic Change
Early Stage Growth ........................................................... 8:03Jamie Kiggen, Director of Research, Early Stage Growth
Quantitative Research....................................................... 8:24Mark R. Gordon, Director of Global Quantitative Research and Co-Head of Alternative Investments
Disc 2: Client Focus Behind-the-ScenesCreating a Fiduciary Culture............................................ 12:24David Martin, Chief Risk OfficerMark Manley, Deputy General Counsel and Chief Compliance Officer
Creating Operational Excellence ..................................... 12:35Mike Borgia, Investment Management OperationsLarry Cohen, Chief Technology Officer
On Boarding Program
| February 2007
www.alliancebernstein.com
How Regional Managers Are
Changing the Conversation
AllianceBernstein Literature LiveVolum
e 1June 2007
www.alliancebernstein.com
Investments
Investments
Linking Investor Behavior to the Five-Step ProcessUnderstanding Wealth Strategies.....................................................Mark Pletts (13:10)
Bringing Wealth Strategies to LifeBalanced Wealth Strategy Christmas Tree Chart.....................................Jeff Nye (10:50)Can Safe Be Too Safe? —Wealth Preservation Strategy................. Bud Angelus (7:35)
Growth Investing and the Dynamic GapThe Paradox of Growth Investing................................................... Joe Tocyloski (12:12)Growth Fund Positioning Piece
Opportunities in Value InvestingFinding Value in Low-Opportunity Environments .......................... John Schmidt (12:38)Value Fund Positioning Piece
Opportunities in International InvestingBroaden Your Horizons................................................................Brian Buehring (12:28)Growth and Value: The Right Combination for International Stocks
Managed AccountsStrategic Research Positioning Piece.................................................. Ben Stairs (6:22)Strategic Research Investment Process in Action ............................... Rick Catts (13:24)
For Internal Use Only
AllianceBernstein
Literature LiveVolume 1 June 2007
Interactive Media
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Intelligence. Passion. Perspective.It’s who we are, why we’re different, and maybe that’s why our people are so successful. Because it’s not enough to just be smart - in the workd of investment management you have to think smart and act smart in real time and all the time. You have to think long-term and big picture. And you have to care about your clients. That’s what makes AllianceBernstein different. Visit us at www.alliancebernstein.com/careers to see the opportunities we’re offering.
�We�don’t��control��the�world,we�try�to��outthink�it. outthink
Investments
AllianceBernstein. Knowing More. Using Knowledge Better.
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AllianceBernstein. Knowing More, Using Knowelege Better.
What does it take to become most admired in your feild?
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AllianceBernstein. Knowing More, Using Knowledge BetterSM
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Intelligence. Passion. Perspective.Intelligence. Passion. Perspective.
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Franklin SmithIT Manager, Alliance Bernstein
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to become the most admired investment firm in the world?
Visit us at www.alliancebernstein.com/careers to see the opportunities we’re offering.
Great Talent. Exceptional Opportunities.
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Alex Williams IT Manager, Alliance Bernstein
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Jeremy Witcker IT Manager, Alliance Bernstein
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Profiles
Franklin SmithIT Manager, Alliance Bernstein
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to become the most admired firm in the world? Great Talent. Exceptional Opportunities.
What does it take...
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Franklin SmithIT Manager, Alliance Bernstein
to become the most admired investment firm in the world?At AllianceBernstein that is great talent, exceptional opportunities and an absolute focus on our business.
Franklin Smith is making his mark. His is not an isolated story. At AllianceBernstein, the right people often take the fast track to the top. We develop their talents, value their contributions, and reward their perfor-mance. It’s amazing what happens.
What does it take...
Visit us at www.alliancebernstein.com/careers to see the opportunities we’re offering.
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8:30 – 8:45 a.m. Welcome Ajaj Kaul Managing Director
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9:15 – 10:00 a.m. Global Capital Markets Outlook David Turnbough Director, Senior Portfolio Manager
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10:15 a.m. – 11:15 p.m. [The Changing Landscape of Marc O. Mayer Retirement Around the World] Executive Managing Director of AllianceBernstein Investments and Executive Vice President of AllianceBernstein L.P.
12:15 – 1:15 p.m. Lunch
1:15 – 1:45 p.m. Promoting a Fiduciary Culture Mark R. Manley Senior Vice President, Deputy General Counsel, and Chief Compliance Officer
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April 27, 2007: AllianceBernstein Investment ForumPark Hyatt Saigon, Ho Chi Minh City, Vietnam
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