EXHIBIT 99.02
AllianceBernstein
Third Quarter 2008 Review
Third Quarter 2008 Review
Gerald M. Lieberman
President & Chief Operating Officer
President & Chief Operating Officer
Lewis A. Sanders
Chairman & Chief Executive Officer
Chairman & Chief Executive Officer
Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice.
October 22, 2008
AllianceBernstein
2
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Cautions regarding Forward-Looking Statements
Certain statements provided by management in this presentation are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results
to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but
are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and
separately managed accounts, general economic conditions, future acquisitions, competitive conditions, and government regulations, including
changes in tax regulations and rates and the manner in which the earnings of publicly traded partnerships are taxed. We caution readers to
carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; we
undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further
information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” in Part I, Item
1A of our Form 10-K for the year ended December 31, 2007 and Part II, Item 1A of our Form 10-Q for the quarter ended June 30, 2008. Any or all
of the forward-looking statements that we make in this presentation, Form 10-K, Form 10-Q, other documents we file with or furnish to the SEC, or
any other public statements we issue, may turn out to be wrong. It is important to remember that other factors besides those listed in “Risk Factors”
and those listed above and below could also adversely affect our revenues, financial condition, results of operations, and business prospects.
Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results
to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but
are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and
separately managed accounts, general economic conditions, future acquisitions, competitive conditions, and government regulations, including
changes in tax regulations and rates and the manner in which the earnings of publicly traded partnerships are taxed. We caution readers to
carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; we
undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further
information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” in Part I, Item
1A of our Form 10-K for the year ended December 31, 2007 and Part II, Item 1A of our Form 10-Q for the quarter ended June 30, 2008. Any or all
of the forward-looking statements that we make in this presentation, Form 10-K, Form 10-Q, other documents we file with or furnish to the SEC, or
any other public statements we issue, may turn out to be wrong. It is important to remember that other factors besides those listed in “Risk Factors”
and those listed above and below could also adversely affect our revenues, financial condition, results of operations, and business prospects.
The forward-looking statements referred to in the preceding paragraph include statements regarding:
= Our anticipation that the historical pattern of some of our best absolute and relative returns following bouts of market turbulence
will repeat itself in the current episode, and our confidence that the actions we are taking will position us to take advantage of a
recovery for our clients and for the firm which history tells us will arrive sooner and be stronger than generally expected:
Historical performance is not necessarily indicative of future results or market movements. The actual performance of the capital markets
and other factors beyond our control will affect our investment success for clients and asset flows.
will repeat itself in the current episode, and our confidence that the actions we are taking will position us to take advantage of a
recovery for our clients and for the firm which history tells us will arrive sooner and be stronger than generally expected:
Historical performance is not necessarily indicative of future results or market movements. The actual performance of the capital markets
and other factors beyond our control will affect our investment success for clients and asset flows.
= Our backlog of new institutional mandates not yet funded: Before they are funded, institutional mandates do not represent legally
binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times we
currently anticipate.
binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times we
currently anticipate.
= The firm’s solid financial foundation positioning it well to navigate through this difficult period: Our solid financial foundation is
dependent on our cash flow from operations, which is subject to the performance of the capital markets and other factors beyond our
control.
dependent on our cash flow from operations, which is subject to the performance of the capital markets and other factors beyond our
control.
= Our hope that we will recover an additional portion of the $56.0 million claim processing error-related charge: Our ability to recover
more of this cost depends on the availability of funds from the related class-action settlements fund, the amount of which is not yet known.
more of this cost depends on the availability of funds from the related class-action settlements fund, the amount of which is not yet known.
*12 months ending September 30, 2008.
Market Performance - US
AllianceBernstein
4
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein
5
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein
6
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
NOTE: Percentages are calculated using AUM rounded to the nearest million.
AllianceBernstein
7
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein
8
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Changes in Assets Under Management by Investment Service
AllianceBernstein
9
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.
NOTE: Percentages are calculated using AUM rounded to the nearest million.
Institutional Investments Highlights: 3Q08
AllianceBernstein
10
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.
NOTE: Percentages are calculated using AUM rounded to the nearest million.
Retail Highlights: 3Q08
AllianceBernstein
11
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.
NOTE: Percentages are calculated using AUM rounded to the nearest million.
Private Client Highlights: 3Q08
Alternative Investment Services AUM*
* Consists of Hedge Fund, Currency and Venture Capital services
AllianceBernstein
13
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein
14
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Third Quarter 2008 Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
AllianceBernstein
15
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Third Quarter 2008 Advisory Fees
NOTE: Percentages are calculated using AUM rounded to the nearest million and revenues to the nearest thousand.
AllianceBernstein
16
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Third Quarter 2008 Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
AllianceBernstein
17
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
NOTE: Percentages are calculated using expenses rounded to the nearest thousand.
AllianceBernstein Third Quarter 2008 Compensation & Benefits
AllianceBernstein
18
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Third Quarter 2008 Net Income
(1) "Operating Margin" = (Operating Income - Non-Controlling Interest in Earnings)/Net Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
AllianceBernstein
19
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
(1) Excludes insurance recoveries related to class action claims processing error.
NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand.
AllianceBernstein Holding Financial Results
AllianceBernstein
Third Quarter 2008 Review
Third Quarter 2008 Review
Lewis A. Sanders
Chairman & Chief Executive Officer
Chairman & Chief Executive Officer
Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice.
October 22, 2008
AllianceBernstein
23
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Market Environment
AllianceBernstein
24
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Institutional Growth Equity (After Fees)(1)
AllianceBernstein
25
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Institutional Value Equity (After Fees)(1)
AllianceBernstein
26
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Blend Strategies (After Fees)(1)
AllianceBernstein
27
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Institutional Fixed Income (After Fees)(1)
AllianceBernstein
28
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Absolute Performance: Private Client (After Fees)(1)
AllianceBernstein
29
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Retail Growth Equity (After Fees)(1)
AllianceBernstein
30
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Retail Value Equity (After Fees)(1)
AllianceBernstein
31
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Retail Fixed Income (After Fees)(1)
AllianceBernstein
32
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
Relative Performance: Wealth Strategies (After Fees)(1)
AllianceBernstein
34
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein
35
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Consolidated Statement of Cash Flows
AllianceBernstein
36
Third Quarter 2008 Review
Proprietary - For AllianceBernstein L.P. use only
AllianceBernstein Headcount
AllianceBernstein Total Net Flows
AllianceBernstein Net Flows by Distribution Channel
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.