Montreux book income_final

AllianceBernstein Income Solutions Fixed Income Solutions

May 2013

Date

Quarter

Doc ID

This 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 the Financial Conduct Authority (FCA – Reference Number 147956). This information is directed at Professional

Clients only. It is provided for informational purposes only and 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 of transaction as a consequence of any information

contained herein. The views and opinions expressed in this document are based on AllianceBernstein's internal forecasts and should not be relied upon as an

indication of future market performance. Past performance is no guarantee of future returns. This information is not intended for public use.

©2013 AllianceBernstein

Fixed Income

AllianceBernstein.com

A Culture of Research and Thought Leadership for Over 45 Years

1

As of March 31, 2013

*Excluding sell-side analysts

Source: AllianceBernstein

Significant Resources and Experience

Number

Avg. Yrs.

Experience

Research Analysts*: 199 14

Portfolio Managers: 135 22


AllianceBernstein: Unwavering Focus on Investment Excellence

2

Research-Driven Culture: One of the industry’s

largest commitments to superior and innovative

research

Ongoing Investment: Diversification that allows

continuous investment across the firm, even when

a particular asset or style may be out of favor

Proven Investment Processes: Highly experienced

teams with distinct investment philosophies and

consistently applied processes

Global Scope: Expertise with both global and local

mandates in markets around the world


*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 ‡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.


Fundamental 70 41 0 8 0 119

Quantitative 18 9 22 12 12 73

Economists 0 7 0 0 0 7

Total Analysts 88 57 22 20 12 199

Number of Buy-Side Analysts

Equities Total Multi-

Asset** Alternatives†

Wealth Management

Fixed Income*

Assets Under Management (USD Billions)‡

By Client Group

Institutional $225

Retail 150

Private Client 68

Total $443

By Investment Discipline§

Growth $39

Value 61

Alternative Strategies 12

Index 71

Fixed Income 261

Total $443

Global Orientation

Service Client Domicile

US

64%

Non-US

36%

US

47%

Non-US

53%


AllianceBernstein: A Leader in Fixed Income Investing

3 As of September 30, 2012

*Includes global and regional single and multi-sector mandates

Global Resources

57 Research Analysts 52 Portfolio Managers 19 Traders

Global

Multi-Sector*

$68billion

Emerging Mkts/

High Income

$67billion

Credit

$86billion

US Tax-Exempt

$29billion

Fixed-Income Assets Under Management: $250 Billion


*Includes global and regional single and multi-sector mandates


Today’s Challenge: Increasing Your Income While Preserving Your Capital

4

With extreme low levels of government and credit

yields. Interest rates also at very low levels but

poised to rise. Investors require a solution.

AllianceBernstein’s Income platform was

designed specifically for this challenge and has

delivered impressive results over time

Past performance does not guarantee future results.

As of 31 March 2013

AllianceBernstein.com 5

As of 31 March 2013. Past performance does not guarantee future results.

Yields shown are yield to maturity

Volatility and yields shown for Global High Yield Portfolio A USD shares, Euro High Yield Portfolio A EUR shares and Global Bond Portfolio A USD shares


Higher Quality

• High Quality Government

• Government Related

• Securitized

• High Quality Corporate Debt

• Sub-Investment Grade Corporate

• Emerging Market Sovereign

• Emerging Market Corporate

• Other High Yielding Debt

A Major Challenge in Today’s Markets

ACMBernstein Global High Yield Portfolio

Yield 6.2%

Volatility 7.6%

ACMBernstein SICAV – Euro High Yield Portfolio

Yield 6.8%

Volatility 10.8%

ACMBernstein Global Bond Portfolio

Yield 1.0%

Volatility 2.0%

Higher Quality Higher Yield

Increasing Your Income While Preserving Your Capital


1-Year 3-Year 5-Year 10-Year

Life of

Fund

ACMBernstein American

Income Portfolio* Quartile:

Rank: 8/115 6/100 4/94 1/66 1/21

ACMBernstein Global High

Yield Portfolio** Quartile:

Rank: 12/78 20/51 8/39 2/24 2/5

ACMBernstein European

Income Portfolio† Quartile:

Rank: 4/70 2/55 1/48 1/28 8/20

ACMBernstein SICAV –

Euro High Yield‡ Quartile:

Rank:

ACMBernstein SICAV –

Asia-Pacific Income Portfolio§ Quartile:

Rank: 15/28 13/24

AllianceBernstein: Leaders In Income Generation

6

1st 1st 1st 1st 1st


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—Lipper

Category: Bond—Europe ; ‡Inception date of 23 May 2011—Lipper Category: Bond—CNY; §Inception date of 8 February 2012—Lipper Category: Bond—Asia Pacific

Lipper 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 less

favorable 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 the

AllianceBernstein 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 AllianceBernstein

1st 1st 1st 1st

1993

1999

2010

2012

Inception

2nd 1st 1997

1st

1st 1st

3rd

1st 2nd

2nd

3rd

1st


Providing A Solution To The Challenge

7

As of 31 March 2013


Highly rated bonds provide the

stability in adverse market

conditions

High yielding bonds provide the

high income

Higher Quality : Capital Stability

Higher Yield : Income Generation

Barbell Active Risk : Provide Balance

The Solution: Combine High Quality with High Yield…… with Active Asset Allocation


AllianceBernstein’s Income Platform Our Experience Shows:

8

Key requirements for Income Strategies :

1. High Income on a Consistent and Stable Basis

2. Capital Stability

3. Protection During Rising Rate Environment

Past performance does not guarantee future results

As of 31 March 2013


Past 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.


0

2,000

4,000

6,000

8,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Dec07

Mar08

Jun08

Sep08

Dec08

Mar09

Jun09

Sep09

Dec09

Mar10

Jun10

Sep10

Dec10

Mar11

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Income (€) Growth of €1m Income (right scale) Capital (left scale)

European Income Portfolio Monthly Income and Capital Value for €1 million Invested on 31 December 2007*

9

Stability of Income and Capital European 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.



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.


0

2,000

4,000

6,000

8,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Dec07

Mar08

Jun08

Sep08

Dec08

Mar09

Jun09

Sep09

Dec09

Mar10

Jun10

Sep10

Dec10

Mar11

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Income ($) Growth of $1m Income (right scale) Capital (left scale)

American Income Portfolio Monthly Income and Capital Value for $1 million Invested on 31 December 2007*

10

Stability of Income and Capital American 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.



As of 31 March 2013

Correlation has been calculated using monthly returns.

*US Treasuries as represented by Barclays US Treasury

Source: Barclays and AllianceBernstein

0.25 0.24 0.19 0.20

0.39

1-Year 3-Year 5-Year 7-Year 10-Year

No Correlation 0.0

High Correlation 1.0

Negative Correlation –1.0

American Income Portfolio vs. US Treasuries*

Worried About Rising Government Yields? Barbell Approach Provides Low Correlation to Government Bonds


23.9 13.3 11.7

–3.2

3.4

8.5 6.5

8.8

14.3

6.1 4.9 6.4

4.6

–11.3

25.0

10.4

5.8 9.4

–20

0

20

40

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

0.25% 0.75% 1.25% 2.00% 1.00% 1.00%

American Income Portfolio: Standing on Its Own When Rates Rise

12


As of 31 December 2012

Portfolio inception date (Class A): 1 July 1993

Source: Barclays, Bloomberg, J.P. Morgan and AllianceBernstein

Performance in Rising Rate Environments 1995–2012

Credit

Crisis

Pe

rcen

t

Fed

Increases:


A Multisector Approach: No Sector Wins All the Time

Past performance does not guarantee future results. Historical information provided for illustrative purpose only.


Returns 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 Yield

Index and the following sub-indices of the Barclays Euro Aggregate Index: Securitized Index, Government Related Index, Corporates Index, Treasuries Index.


Sector Returns (Percent) 2010 2003 2004 2005 2006 2007 2008 2009

Best

Worst

Gap 26.0 7.1 2.0 11.2 4.0 41.4 7.4 80.1

2011

14.2

2012

18.8

European

High Yield

30.1

European

High Yield

13.6

European

High Yield

5.7

European

High Yield

11.0

Euro Gov’t

related

2.0

Euro

Treasuries

9.3

European

High Yield

84.4

European

High Yield

15.3

Euro Gov’t

related

4.6

European

High Yield

27.9

Euro

Corporates

6.8

Euro

Treasuries

7.6

Euro

Treasuries

5.4

Euro

Corporates

0.5

Euro

Securitized

1.7

Euro Gov’t

related

6.9

Euro

Corporates

15.7

Euro

Corporates

4.8

Euro

Securitized

3.6

Euro

Corporates

13.6

Euro Gov’t

related

4.4

Euro

Corporates

7.6

Euro Gov’t

related

4.4

Euro

Securitized

0.2

Euro

Treasuries

1.7

Euro

Securitized

6.0

Euro

Securitized

7.7

Euro Gov’t

related

3.7

Euro

Treasuries

3.4

Euro

Securitized

11.6

Euro

Securitized

4.4

Euro Gov’t

related

7.1

Euro

Corporates

4.0

Euro Gov’t

related

0.1

Euro

Corporates

0.0

Euro

Corporates

–3.8

Euro Gov’t

related

6.5

Euro

Securitized

1.3

Euro

Corporates

1.5

Euro

Treasuries

11.0

Euro

Treasuries

4.1

Euro

Securitized

6.5

Euro

Securitized

3.7

Euro

Treasuries

–0.2

European

High Yield

–2.0

European

High Yield

–32.1

Euro

Treasuries

4.3

Euro

Treasuries

1.1

European

High Yield

–2.8

Euro Gov’t

related

9.1

Barbell Makeup is Not Static

Constructing the Barbell Through Active Management


0

20

40

60

80

100

Ma

r 0

8

Ju

n 0

8

Sep

08

Dec 0

8

Ma

r 0

9

Ju

n 0

9

Sep

09

Dec 0

9

Ma

r 1

0

Ju

n 1

0

Sep

10

Dec 1

0

Ma

r 1

1

Ju

n 1

1

Sep

11

Dec 1

1

Ma

r 1

2

Ju

n 1

2

Sep

12

Dec 1

2

Ma

r 1

3

Government-Related* IG Corporates HY Corporates EMD Covered Bonds Other**

14

Sector 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.


European Income Portfolio Sector Weights Percent over Time

A Multisector Approach To Constructing The Barbell Dynamic Sector Allocation is Key to Generating Income and Returns

Construct High Quality End

- Government

- Covered Bonds

- High Quality IG Corporate

- Yield Curve Flatteners

Construct High Income End

- High Yield Corporate

- EMD Corporate/Sovereign

- FX Carry Premium


Po

rtfo

lio V

aria

nce

(R

isk)

Number of Securities in Portfolio

Diversifiable Risk

Name Specific / Nonsystematic Risk

Non-Diversifiable Risk

Market / Systematic Risk

Diversification Matters, Especially in Fixed-Income Investing

15

Diversification Matters: Contribution to Portfolio Active Risk

Diversification allows for pursuit of income opportunities as well as risk protection

Current analysis does not guarantee future results.

As at 31st March 2013

Additional return for high-yield bonds may come from call premiums, change-of-control puts, tender offers, etc.


Typical Number of Issues

European Income: 200 - 350

American Income: 700 - 900

Asia Pacific Income: 200 - 350

Euro High Yield : 150 - 250

Global High Yield: 1,000 - 1,200


The Expert Corner: Experience, Deep Research and Proven Investment Process

16

Proven Investment process developed over the

past 40 years

Experienced team of portfolio managers

22 years experience of the industry

11 years average tenure with AllianceBernstein

10 fixed income quantitative analysts

7 economists

40 credit analysts

US$247bn billion total fixed income assets

under management


As of 31st March 2013



The AllianceBernstein Income Tool Box Direct High Income and/or Balanced Income Generating Products

17

Current distribution yield* and monthly income

on a €1 million investment**

Global High Yield

5.58%

or

€4,625 p.m.


As 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 Income

Portfolio 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 management

company.

**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.


European Income

4.41%

or

€3,675 p.m.

American Income

4.19%

or

€3,491 p.m.

Asia-Pacific Income

3.72%

or

€3,100 p.m.

Balancing higher yield and

stability of invested capital

Searching for higher yield

Euro High Yield

5.46%

or

€4,550 p.m.


Appendix


The Expert Corner: Exposures

19

Willingness to

Balance

Income and

Stability

Geographical

Exposure

Exposure to

Highly Rated

Sovereigns

Bonds

Exposure to

Highly Rated

Corporate

Bonds

Exposure to

High Yielding

Corporate

Bonds

Exposure to

Emerging

Market Debt

Exposure to

CMBS, CMO,

ABS, Bank

Loans

Global High Yield Medium Global

American Income High US

European Income High Europe

Asia-Pacific Income High Asia Pacific

Highly rated bonds provide

stability in adverse markets

High yielding bonds and bonds

from emerging markets provide

high income

As of 31 March 2013



Long Track Record of Delivering Attractive Income Distributions: Global High Yield, European and American Income Funds


As of 31 March 2013

Net 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.


American Income Portfolio (USD A Share Class):

4.54% Net Distribution Yield

European Income Portfolio (EUR A Share Class):

4.41% Net Distribution Yield

Global High Yield Portfolio (USD A Share Class):

5.90% Net Distribution Yield Active sector allocation and security selection used

to maintain a stable income as well as total returns

Diversified credit portfolio actively managed to limit

issuer-specific credit risk

Track record for delivering stable, attractive yields

across our suite of income funds

0

5

10

15

20

25

0.00

0.02

0.04

0.06

0.08

0.10

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Perc

ent In

US

D

Monthly Income Distribution per Fund Unit Annualized Distribution Yield

0

2

4

6

8

10

12

0.00

0.02

0.04

0.06

0.08

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Perc

ent In

US

D

Monthly Income Distribution per Fund Unit Annualized Distribution Yield

0

2

4

6

8

10

0.00

0.02

0.04

0.06

0.08

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13P

erc

ent In

US

D

Monthly Income Distribution Per Fund Unitp Annualized Distribution Yield



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.


0

2,000

4,000

6,000

8,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Dec07

Mar08

Jun08

Sep08

Dec08

Mar09

Jun09

Sep09

Dec09

Mar10

Jun10

Sep10

Dec10

Mar11

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Income ($) Growth of $1m Income (right scale) Capital (left scale)

Global High Yield Portfolio Monthly Income and Capital Value for $1 million Invested on 31 December 2007*

21

Global 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.


Income Q&A: Creating Distributions, while Maintaining Stability

22

How 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 investors

Why 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 per

share, to stay in line with coupons available in the markets

Our 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


European Income:

71 Individual Awards/Honors from

Various Countries Since 1999

Global High Yield:



AllianceBernstein 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 Award





4 S&P Fund Awards



8 €URO Fund Awards


4 Morningstar Fund Award

20 S&P Fund Awards



1 South China Morning Post Award

1 €URO Fund Award

1 Austria Fund Award

1 FERI Fund Award

American Income:




The Expert Corner: Dynamic Process to Deliver High Income with Stability

24

Translates research into portfolios

High Income…

…with Stability

Quantitative

Fundamental

Research

Rates and

Currencies

Credit

Emerging

Markets

Securitizations

Municipals

Research Review

Risk Budgeting

Country/Yield

Curve

Sector Allocation

Security

Selection

Currency

Active Risk

Management

Portfolio

Construction


European Contact List

25

Switzerland

Peter Stiefel: +41 22 310 90 82

[email protected]

France

Olivier Herson: +33 156 43 50 48

[email protected]

Germany

Gunnar Knierim: +49 89 255 40 101

[email protected]

Martin Vom Hagen: +49 89 21 66 97 101

[email protected]

Italy

Nicola Meotti: +39 0200 621 323

[email protected]

Massimo Dalla Vedova : +39 0200 621 324

[email protected]

Benelux

Willem Van Gijzen: +31 20 799 77 73

[email protected]

Nordics

Steen Jorgensen: +46 85 35 27 460

[email protected]

mailto:[email protected]









A Word About Risk

26

Market 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.

If the 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.

These risks 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 the

currency 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. The

MSCI 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 or

produced by MSCI.

The value of an investment can go up or down and past performance is neither indicative of, nor a guarantee of, future results. The sale of AllianceBernstein

funds may be restricted or subject to adverse tax consequences in certain jurisdictions. This information is directed solely at persons in jurisdictions

where the funds and relevant share class are registered or who may otherwise lawfully receive it. Before investing in AllianceBernstein funds, investors should

review the fund's full prospectus, together with the fund’s Key Investor Information Document and the 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 from AllianceBernstein

(Luxembourg) S.A.R.L., by visiting www.alliancebernstein.com or by contacting the local distributor in the jurisdictions in which the funds are authorised for

distribution.

AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.

©2013 AllianceBernstein L.P. www.alliancebernstein.com

IC2013157

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Montreux book income_final

Economy & Finance

guarantee

alliancebernsteins

historical

euro govt

pacific income

american income

monthly income

global high