Exhibit 99.6
ALLIANCE CAPITAL
Fourth Quarter 2000 Review
| Bruce W. Calvert | John D. Carifa | Lewis A. Sanders | ||
| CEO | President and COO | CIO |
February 2, 2001
Introduction
As you know, the SEC has recently adopted Regulation FD. In light of Regulation FD, we will be limited in responding to inquiries from investors or analysts in a nonpublic forum. Therefore, we encourage you to ask all questions of a material nature on this conference call.
Forward-Looking Statements
Certain statements provided by Alliance Capital Management L.P. ("Alliance Capital") and Alliance Capital Management Holding L.P. ("Alliance Holding") in this report 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 which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of such factors include, but are not limited to, the following: the performance of financial markets, the investment performance of Alliance Capital's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions, and government regulations, including changes in tax rates. Alliance Capital and Alliance Holding caution readers to carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; Alliance Capital and Alliance Holding undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
2
Fourth Quarter Highlights
• Assets under management of $454 billion at 12/31/00
• Acquisition of Bernstein added $86 billion at 10/02/00
• Net new business added $7 billion
• Performance of all major investment disciplines ahead of benchmarks
• Institutional research services revenues climbed 13%
• Growth stocks registered negative returns while value results were positive
• Market depreciation reduced assets under management by $27 billion
3
Market Depreciation Partially Offsets Bernstein and New Business
| | Retail | Institutional Money Mgmt | Private Client | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| • Sept 2000 AUM | $ | 174 | $ | 210 | $ | 4 | $ | 388 | |||||
• Bernstein | — | 55 | 31 | 86 | |||||||||
• Net New Business | 6 | 2 | (1 | ) | 7 | ||||||||
• Market Appreciation/(Depreciation) | (17 | ) | (13 | ) | 3 | (27 | ) | ||||||
• Dec 2000 AUM | $ | 163 | $ | 254 | $ | 37 | $ | 454 | |||||
4
Operating Partnership 4Q Financial Highlights
| | 2000 | 1999 | |||||
|---|---|---|---|---|---|---|---|
| • Revenues: | |||||||
Base Fee & Other | $ | 743 | $ | 483 | |||
Performance Fee | 50 | 102 | |||||
• Expenses | 578 | 416 | |||||
• Net Operating Earnings | $ | 215 | $ | 169 | |||
• Non-recurring Items, Net | (23 | ) | — | ||||
5
Operating Partnership: Decline in Performance Fees Offsets Modest Base Fee Earnings Growth
| | 2000 | 1999 | % change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Per Unit | |||||||||
• Base Fee Earnings | $ | 0.76 | $ | 0.73 | +4 | % | |||
• Performance Fee Earnings | 0.08 | 0.22 | - -64 | % | |||||
• Net Operating Earnings* | $ | 0.84 | $ | 0.95 | - -12 | % | |||
*Net Operating Earnings: Net income excluding amortization of intangibles and non-recurring items.
6
Alliance Holding 4Q Financial Highlights
| | 2000 | 1999 | % change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| • Net Operating Earnings | $ | 0.76 | $ | 0.87 | -13 | % | |||
• Base Fee Earnings | 0.69 | 0.67 | +3 | % | |||||
• Performance Fees | 0.07 | 0.20 | - -65 | % | |||||
• Non-recurring Items, Net | (0.09 | ) | — | — | |||||
7
Bernstein Acquisition Accretive During Fourth Quarter
• Added $0.06 to net operating earnings
• Added $0.02 to base fee earnings
• Revenue and profit met expectations
8
Goodwill and Non-Recurring Items Impacted Net Income in 4Q
| | 2000 | 1999 | % change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| • Net Operating Earnings | $ | 0.76 | $ | 0.87 | -13 | % | |||
• Amortization of Intangibles | (0.17 | ) | (0.01 | ) | 1,600 | ||||
• Non-recurring Items, Net | (0.09 | ) | — | — | |||||
• Net Income | $ | 0.50 | $ | 0.86 | - -42 | % | |||
9
…But Will Not Impact Distributions
| | 2000 | 1999 | % change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| • Distributions Derived from Net Operating Earnings | $ | 0.75 | $ | 0.85 | -12 | % | |||
• Distributions—Cash Proceeds Poland | 0.03 | — | — | ||||||
• Total Distributions | $ | 0.78 | $ | 0.85 | - -8 | % | |||
10
AUM Decline Pressured Profit Margins
| | 2000 | 1999 | ||
|---|---|---|---|---|
| • Pre-Tax Net Operating Margins | 35% | 39% |
11
Retail Business Highlights
• 2000 revenues exceeded $1.7 billion
• Year-end AUM of $163 billion
• 2000 net new asset flows $25 billion*
• U.S. net flows of $21 billion, up 5% from 1999*
• Non-U.S. net flows of $4 billion, down 13% from 1999
• Competitive investment performance
• 218 wholesaling force worldwide
* Includes retail cash management
12
A Diverse Retail Business Mix
$163 Billion at December 31, 2000
Amounts in $ billions
13
Retail Business
Changes in Assets Under Management
| | U.S. Funds | Non-U.S. Funds | Variable Annuity | Wrap | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| • Sept 2000 AUM | $ | 94 | $ | 20 | $ | 45 | $ | 15 | $ | 174 | ||||||
• Long-term product net sales | 1 | 1 | 2 | 1 | 5 | |||||||||||
• Net cash management sales | 2 | — | — | — | 2 | |||||||||||
• Unreinvested dividends | (1 | ) | — | — | — | (1 | ) | |||||||||
• Net new business | 2 | 1 | 2 | 1 | 6 | |||||||||||
• Market depreciation | (7 | ) | (3 | ) | (6 | ) | (1 | ) | (17 | ) | ||||||
• Dec 2000 AUM | $ | 89 | $ | 18 | $ | 41 | $ | 15 | $ | 163 | ||||||
Assets reflect 100% of the assets managed by the Joint Venture companies. Amounts in $ billions.
14
Alliance Non-Proprietary Market Share Trends
| Gross Sales | Net Sales | |
 |  |
Source: Alliance Capital and ICI. U.S.Based Funds
15
Average Global Daily Net Sales
Amounts in $ millions
16
Retail Investment Performance
| | Annualized Performance | Percentile Ranking | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| | 1 Year | 5 Year | 1 Year | 5 Year | ||||||
| U.S. Funds | ||||||||||
| Premier Growth | (19.9 | )% | 20.5 | % | 69 | % | 25 | % | ||
| (Large Cap Growth) | ||||||||||
Technology | (24.6 | ) | 21.4 | 26 | 60 | |||||
| (Science and Technology) | ||||||||||
Growth & Income | 13.6 | 19.5 | 33 | 7 | ||||||
| (Multi-Cap Core) | ||||||||||
North American Gov't Trust | 18.5 | 14.2 | 1 | 1 | ||||||
| (Global Income) | ||||||||||
Wrap | ||||||||||
| Regent Wrap Lg. Cap Equity | (6.3 | ) | 22.6 | (9.1 | )* | 18.3 | * | |||
Non-U.S. Funds | ||||||||||
| Global Growth Trends | 0.5 | 17.4 | 10 | 8 | ||||||
| (Global Growth) | ||||||||||
* Performance of S&P 500.
Mutual fund performance, Regent Wrap, and Lipper data through 12/31/00. Percentile rankings based on Lipper for mutual funds.
17
Key Retail 2001 Initiatives
• Launching co-branded AllianceBernstein funds in 1Q
• Continued emphasis on CollegeBoundfund sm for educational savings
• Increase e-wholesaling force to 10% of total sales force
• Further expansion of non-U.S. mutual fund sales infrastructure
18
Alliance/Bernstein Institutional Money Management Business Highlights
• 2000 revenues reached $714 million
• Year-end AUM of $254 billion
• Largest institutional manager in active growth and value(1)
• Integration of sales and client service groups completed
• 102 new account wins totaling $7.4 billion in AUM, 4Q 2000
(1) As measured by assets under management by Pensions & Investments, May 2000
19
Fourth Quarter Institutional Separately Managed Account Wins
102 New Accounts
$7.4 Billion in AUM
| Equity Products | New Accounts | Fixed Income Products | New Accounts | |||
|---|---|---|---|---|---|---|
| Large Cap Growth | 16 | Global Fixed Income | 6 | |||
| Diversified Value | 13 | Global High Yield | 3 | |||
| Disciplined Growth | 11 | Sector Rotation | 2 | |||
| International Value | 7 | Municipals | 1 | |||
| Strategic Value | 3 | Mortgage | 1 | |||
| Global Value | 3 | |||||
| Emerging Markets Growth | 3 | Other Products | ||||
| Canadian Value | 3 | Commingled Vehicles | 13 | |||
| Japan Equity | 2 | Regent Accounts | 3 | |||
| Global/Int'l Growth | 2 | Passive | 2 | |||
| Emerging Markets Value | 2 | |||||
| Multi-cap Growth | 1 | |||||
| Other | 5 |
As of 12/31/00.
20
Institutional Separate Account Composite Performance(1)
Growth Composites
| | Annualized Performance(1) | Percentile Ranking(2) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | 1 Year | 5 Year | 1 Year | 5 Year | |||||
| Large Cap Growth | (17.8 | )% | 22.3 | % | 55 | 29 | |||
| (Growth Equity) | |||||||||
Multi Cap Growth | (9.7 | ) | 19.7 | 47 | 41 | ||||
| (All Cap Growth Equity) | |||||||||
Research Managed | (3.4 | ) | 19.5 | 11 | 54 | ||||
| (Growth Equity) | |||||||||
Small Cap Growth | 17.8 | 19.5 | 8 | 27 | |||||
| (Small Cap Growth) | |||||||||
International Large Cap Growth | (15.5 | ) | 9.7 | 55 | 61 | ||||
| (Non-U.S. Equity) | |||||||||
Japan Equity | (32.4 | ) | 4.6 | 59 | 25 | ||||
| (Japanese Equity) | |||||||||
European Growth | (14.1 | ) | n/a | 91 | n/a | ||||
| (European Equity) | |||||||||
Enhanced Sector Rotation | 11.7 | 6.8 | 38 | 12 | |||||
| (Active Core Fixed Income) | |||||||||
(1) Investment performance shown net of investment management fees.
(2) Frank Russell percentile rankings based on gross fee performance.
See Performance Disclosure.
Composite and Frank Russell data as of 12/31/00.
21
Institutional Separate Account Composite Performance(1)
Value Composites
| | Annualized Performance(1) | Percentile Ranking(2) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | 1 Year | 5 Year | 1 Year | 5 Year | |||||
| Strategic Value | 10.0 | % | 13.7 | % | 39 | 67 | |||
| (Large Cap Value) | |||||||||
Diversified Value | 13.3 | n/a | 25 | n/a | |||||
| (Large Cap Value) | |||||||||
Relative Value | 15.0 | 20.0 | 35 | 11 | |||||
| (Large Cap Value) | |||||||||
Small Cap Value | 19.7 | 11.4 | 57 | 90 | |||||
| (Small Cap Value) | |||||||||
International Value | (2.7 | ) | 11.8 | 13 | 38 | ||||
| (International Equity: non-US) | |||||||||
(1) Investment performance shown net of investment management fees.
(2) Callan percentile rankings based on gross fee performance.
Composite data and Callan data for percentile rankings as of 12/31/00. See Performance Disclosure.
22
Outlook for 2001:
Institutional Money Management Key Initiatives
• Capitalize on substantial increase in sales resources
• Pursue cross selling opportunities to existing clients
• 1,900+ relationships
• modest overlap
• Launch of Alliance/Bernstein blend services
• Greater penetration of international markets
23
Private Client Business Highlights
Bernstein Investment Management & Research
• 2000 total revenues $420 million
• Year-end 2000 AUM of $37 billion
• Recovery of value investment performance
• Growth product introduced on October 2, 2000
• Positive cash flows in January 2001
24
Growth and Value Working Well for Clients
| | Value Wins | Growth Wins | |||
|---|---|---|---|---|---|
| | 4th Quarter 2000* | YTD 2001** | |||
| Russell 1000 Growth | (20.0 | ) | 6.9 | ||
Russell 1000 Value | 3.5 | 0.4 | |||
50% Strategic Value / 50% Strategic Growth | (3.1 | ) | 5.1 | ||
S&P 500 | (7.7 | ) | 3.5 | ||
50/50 Performance Advantage | 4.6 | % | 1.6 | % | |
* 10/4/00 - 12/29/00
** 1/2/01 - 1/31/01
Investment performance shown after all fees.
See Performance Disclosure.
25
Outlook for 2001:
Private Client Key Initiatives
• Roll-out Alliance products to Bernstein private clients
• Growth
• Real Estate
• Cash Management
• Hedge Funds
• Roll-out of next generation investment-planning tools
• Plan to open three new offices
• Expand number of financial advisors by 15%
26
Outlook for 2001:
Institutional Research Services Key Initiatives
• 2000 revenues of $213 million
• Dramatic expansion of analysts and industry coverage
• Expansion of research services on European companies/markets
• Launch of European trading capability
27
Our Mission
To be the premier
global research and investment-management organization
throughsuperior performance
across abroad range ofinvestment disciplines
for adiverse group ofclients
28
A Broad Range of Investment Disciplines
29
A Diverse Group of Clients
30
Delivered Through a Global Platform
* Includes investment professionals and analysts from joint venture offices.
31
With the Goal of Creating Unitholder Value
(Distributions per Unit)
Adjusted for two-for-one Unit split in 1998.
32
Outlook from 4Q 2000 Run Rates:
Positive Organic Growth
• Revenue growth 10-15%
• 7-8% blended capital markets growth
• $30-40 billion in net new flows
• Accelerated growth in institutional research services
• Decline in performance fees
• Expenses
• Expense growth below base revenue growth
• Net operating earnings and distributions grow in line with revenues
• Base fee net operating earnings exceed revenue growth
33
…but Market Depreciation in 2000 Will Hurt Results in Calendar Year 2001
• First quarter net operating earnings expected to be down from 4Q 2000 and down from 1Q 2000
• Beginning 2001 AUM below 4Q 2000 average
• Performance fees—high watermark issues for growth-oriented funds
—conservative expectations for value-oriented funds
• Full year net operating earnings and unit distributions expected to be similar to 2000
• Year-over-year earnings comparisons turn positive in second half of 2001
34
Positioned For Growth
• Worldwide research and investment capabilities
• Unique strengths in growth and value investing
• Highly regarded marketing and client service teams
• Well-positioned in retail, institutional and private client channels
• Continued underlying business strength
• Strong financials
• Cogent strategy
35
Performance Disclosure
Alliance Capital Management L.P.
Alliance Capital Management L.P. ("Alliance Capital"), is a registered investment advisor. Alliance Capital had $454 billion in assets under management as of December 31, 2000. Performance figures in this report have been presented net of investment management fees. Net performance figures have been calculated by deducting the highest fee charged to an account in a composite, excluding accounts with performance based fee arrangements and balanced accounts which may be charged an equity fee rate. Net of fee performance figures reflect the compounding effect of such fees. The annual fees used: 1.00% for Small Cap Growth, 0.90% for Large Cap Growth, 0.75% for International Large Cap Growth, Research Managed, Japanese Equity and European Growth, and 0.29% for Enhanced Sector Rotation.
No representation is made that the performance of these investment accounts are indicative of future performance. Performance figures for each account are calculated monthly on a trade-date basis using an internal rate of return calculation. Monthly market values include income accruals and reflect the daily weighting of cash flows. The composite results are asset weighted on a monthly basis. Quarterly and annual composite performance figures are computed by linking monthly returns resulting in a time-weighted rate of return.
The Composites include discretionary tax-exempt accounts with assets over $10 million which are not subject to significant investment restrictions imposed by clients, except for the European Growth Composite which consists of one taxable account. The Composites are asset weighted and have been built according to AIMR Performance Presentation Standards. AIMR has not been involved with the preparation or review of this report. Alliance Capital received attestation from KPMG for Level 1 and 2 AIMR Verification for 1992, 1993, 1994, 1996, 1997 and 1998. We are currently reviewing 1999. This verification and other composites are available upon request.
Composites used for performance reporting purposes represent the following:
| Strategy | Number of Accounts | Assets ($mm) | % of Total Firm Assets | ||||
|---|---|---|---|---|---|---|---|
| Large Cap Growth | 285 | 37,202 | 8 | % | |||
| Research Managed | 2 | 4,211 | 1 | % | |||
| Small Cap Growth | 12 | 1,606 | ‹1 | % | |||
| Multi Cap Growth | 13 | 1,166 | ‹1 | % | |||
| International Large Cap Growth | 5 | 2,070 | ‹1 | % | |||
| Japanese Equity | 11 | 619 | ‹1 | % | |||
| European Growth | 1 | 2,317 | ‹1 | % | |||
| Enhanced Sector Rotation | 28 | 4,349 | 1 | % | |||
36
Performance Disclosure (con't)
Alliance Capital Management L.P.—Bernstein Investment Research & Management Unit
Prior to October 2, 2000, performance figures relating to the Bernstein value products were calculated by Sanford C. Bernstein & Co., Inc., and thereafter, by Alliance Capital Management L.P. through its Bernstein Investment Research and Management unit (the "Bernstein Unit"). The Bernstein Unit services the former investment management clients of Sanford C. Bernstein & Co., Inc., and has used the following standards of measurement in compiling its performance data:
1)Total Return—Performance results of accounts and comparisons are made on a total return basis which includes all dividends, interest and accrued interest, and realized and unrealized gains or losses. Securities are included in accounts on a trade date basis. Performance results are after deductions of all transaction charges and fees.
2)Rate of Return—Investment results are computed on a "time-weighted" rate of return basis. Assuming dividends and interest are reinvested, the growth in dollars of an investment in a period can be computed using these rates of return. In computing the "time-weighted rate of return", if an account's net monthly cash flow exceeds 10% of its beginning market value, the cash flows are weighted on a daily basis. When an account's net monthly cash flows are less than 10% of its beginning market value, the cash flows are weighted by the "end of the month" assumption.
3)Preparation of Data—Investment results on a quarterly basis for accounts in the cited category under the discretionary management of Bernstein's Investment Policy Group for the entire quarter were added together and the sum divided by the total number of accounts in each quarter through 1992; beginning in 1993 quarterly performance was for all accounts weighted by their market value. These quarterly performance figures were then linked to produce a continuous-performance index. The continuous-performance index from inception was used to create point-to-point comparisons. Closed accounts are included for each full quarter prior to their closing. Strategic Value returns include all Strategic Value accounts from 1974-1982 and, from 1983-1999, all Strategic Value accounts with $5 million or more in assets. Beginning January 1, 2000, results exclude accounts with a client-directed margin balance of 20% or more of market value at any month end. Strategic Value accounts exclude the following products: Diversified Value, Social Investing, Leveraged Hedge and Maximum Appreciation 1000 Accounts. From 1994-1999, returns for Diversified Value optimized against the S&P 500 Index exclude certain accounts with special restrictions imposed by clients. The minimum account sizes included in Diversified Value performance are: 1986: 3Q-1991: $5 million; thereafter: all accounts. Small-Cap Value Equity includes all accounts. Investment results for International Value Equity through June 1993 were those of a single, pooled, managed International Value account. From July 1993 quarterly results were those of GDP-weighted, half-hedged International Value accounts separately managed in US dollars. International Value returns exclude certain accounts with special restrictions imposed by clients.
4)Dispersion—Dispersion, or standard deviation, measures the variability of account returns within a composite. In a normal distribution, approximately two-thirds of the account returns will fall within the range of one standard deviation above and below the equal-weighted mean return. Beginning in 1993, performance is weighted by account size, therefore dispersion is calculated from the asset-weighted mean. Dispersion of performance for accounts under management were as follows: Strategic Value—1974: 29.1; 1975: 26.5; 1976: 17.6; 1977: 8.3; 1978: 11.5; 1979: 9.0; 1980: 8.7; 1981: 5.6; 1982: 5.5; 1983: 2.9; 1984: 1.6; 1985: 1.6; 1986: 1.1; 1987: 1.7; 1988: 1.7; 1989: 1.4; 1990: 1.2; 1991: 2.0; 1992: 1.4; 1993: 1.2; 1994: 1.2; 1995: 1.3; 1996: 1.3; 1997: 1.6; 1998: 2.5; 1999: 2.5; 2000: N/A.; Diversified Value: 1986: 3Q-4Q: 0.1; 1987: 0.2; 1988: 0.4; 1989: 0.4; 1990: 0.6; 1991: 0.4; 1992: 0.3; 1993: 0.9; 1994: 0.8; 1995: 0.8; 1996: 0.9; 1997: 1.1; 1998: 1.5; 1999: 1.3; 2000: N/A; Small-Cap Value Equity: 1991: 1.3; 1992: 1.3; 1993: 1.5; 1994: 1.6; 1995: 1.6; 1996: 1.2; 1997: 1.0; 1998: 1.8; 1999: 1.6; 2000: N/A; International Value (Half-Hedged): 1993: 2H: 0.6; 1994: 0.9; 1995: 1.5; 1996: 1.0; 1997: 1.1; 1998: 1.6; 1999: 1.8; 2000: N/A.
5)Financial Securities Environment—Various indices are used to indicate the type of investment environment existing during the time periods shown.
| Strategy | Number of Accounts | Assets ($mm) | % of Total Firm Assets | ||||
|---|---|---|---|---|---|---|---|
| Strategic Value (accts over $5 million) | 342 | 17,224 | 4 | % | |||
| Diversified Value | 397 | 10,948 | 2 | % | |||
| Relative Value | 8 | 1,596 | ‹1 | % | |||
| Small Cap Value | 60 | 1,697 | ‹1 | % | |||
| International Value (half-hedged, GDP wtd) | 64 | 1,388 | ‹1 | % | |||
37
Alliance Capital 4Q00 Earnings
Presentation Appendix
Alliance Capital—Investment Considerations
| Alliance Capital (The Operating Partnership) | |||
• Assets Under Management: | $ | 454 billion | |
• Market Value(1): | $ | 14.5 billion | |
Alliance Holding (The Publicly Traded Partnership) | |||
• NYSE | Ticker: AC | ||
• AC: Market Capitalization (public) | $ | 4.3 billion | |
• Current Price: | $ | 58.10 | |
• Trailing Twelve Month Yield | 5.4% | ||
• 10 year DPU Growth Rate | 22% | ||
• 5 year DPU Growth Rate | 28% |
(1) Value of operating partnership is based upon price of Alliance Holding units as of 1/31/01 and total outstanding Alliance Capital units as of 12/31/00.
Current price, market capitalization, and yield as of 1/31/01. AUM as of 12/31/00
2
Ownership Structure—Alliance Capital
 |  |
* AXA Financial ownership includes General Partnership interests.
Employee ownership percentage includes restricted unit awards pursuant to 1999 Partners Plan.
3
Financial Results—Alliance Capital (The Operating Partnership)
| | 4th Quarter | | Full Year | | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | % Change | % Change | ||||||||||||||||
| | 2000 | 1999(1) | 2000 | 1999(1) | ||||||||||||||
| Revenues | ||||||||||||||||||
| Advisory Fees | $ | 544 | $ | 428 | 27 | $ | 1,690 | $ | 1,332 | 27 | ||||||||
| Distribution Revenues | 152 | 127 | 19 | 622 | 442 | 41 | ||||||||||||
| Inst. Research Services | 56 | — | — | 56 | — | n/a | ||||||||||||
| Other | 41 | 30 | 38 | 154 | 95 | 61 | ||||||||||||
| 793 | 585 | 35 | 2,522 | 1,869 | 35 | |||||||||||||
Operating Expenses | 568 | 405 | 40 | 1,767 | 1,337 | 32 | ||||||||||||
Operating Income | 225 | 180 | 25 | 755 | 532 | 42 | ||||||||||||
Amortization of Intangibles | 43 | 1 | n/a | 46 | 4 | n/a | ||||||||||||
Non-recurring Items | 23 | — | n/a | (1 | ) | — | n/a | |||||||||||
Income Before Taxes | 159 | 179 | (12 | ) | 710 | 528 | 34 | |||||||||||
Income Taxes | 11 | 11 | (9 | ) | 41 | 34 | 19 | |||||||||||
NET INCOME | $ | 148 | $ | 168 | (12 | ) | $ | 669 | $ | 494 | 35 | |||||||
BASE FEE EARNINGS | $ | 194 | $ | 130 | 50 | $ | 677 | $ | 433 | 57 | ||||||||
PERFORMANCE FEE EARNINGS | 21 | 39 | (48 | ) | 37 | 66 | (44 | ) | ||||||||||
NET OPERATING EARNINGS(2) | $ | 215 | $ | 169 | 27 | $ | 714 | $ | 499 | 43 | ||||||||
(1) Amounts assume the Alliance Holding Reorganization occurred on January 1, 1999.
(2) Net Operating Earnings: Net income excluding amortization of intangibles and non-recurring items.
Amounts in $ millions.
4
Financial Results—Alliance Holding (The Publicly Traded Partnership)
| | 4th Quarter | | Full Year | | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | % Change | % Change | |||||||||||||||
| | 2000 | 1999(1) | 2000 | 1999(1) | |||||||||||||
| Equity in Earnings of Operating Partnership | $ | 43 | $ | 70 | (38 | ) | $ | 245 | $ | 204 | 20 | ||||||
Income Taxes | 6 | 6 | 3 | 21 | 18 | 15 | |||||||||||
NET INCOME | $ | 37 | $ | 64 | (42 | ) | $ | 224 | $ | 186 | 20 | ||||||
DILUTED NET INCOME PER UNIT | $ | 0.50 | $ | 0.86 | (42 | ) | $ | 2.93 | $ | 2.53 | 16 | ||||||
Amortization of Intangibles per Unit | 0.17 | 0.01 | 1,600 | 0.22 | 0.02 | 1,000 | |||||||||||
Non-recurring Items per Unit | 0.09 | — | n/a | — | — | n/a | |||||||||||
NET OPERATING EARNINGS PER UNIT(2) | $ | 0.76 | $ | 0.87 | (13 | ) | $ | 3.15 | $ | 2.55 | 24 | ||||||
BASE FEE EARNINGS PER UNIT | $ | 0.69 | $ | 0.67 | 3 | $ | 3.00 | $ | 2.22 | 35 | |||||||
PERFORMANCE FEE EARNINGS PER UNIT | 0.07 | 0.20 | (65 | ) | 0.15 | 0.33 | (55 | ) | |||||||||
NET OPERATING EARNINGS PER UNIT(2) | $ | 0.76 | $ | 0.87 | (13 | ) | $ | 3.15 | $ | 2.55 | 24 | ||||||
UNITHOLDER DISTRIBUTION PER UNIT | $ | 0.78 | $ | 0.85 | (8 | ) | $ | 3.11 | $ | 2.49 | 25 | ||||||
(1) Amounts assume the Alliance Holding Reorganization occurred on January 1, 1999.
(2) Net Operating Earnings per Unit: Diluted Net income excluding Alliance Holding's proportionate share of amortization of intangibles and non-recurring items.
5
Alliance Capital(The Operating Partnership)
Consolidated Balance Sheet
| | 12/31/00 | 12/31/99 | ||||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Cash and investments | $ | 556,569 | $ | 178,805 | ||||
| Restricted cash and securities at market (cost $1,289,120) | 1,306,334 | — | ||||||
| Receivable from brokers and dealers | 1,316,694 | 218,569 | ||||||
| Receivable from clients | 187,945 | — | ||||||
| Fees receivable | 401,609 | 309,849 | ||||||
| Furniture, equipment and leasehold improvements, net | 199,699 | 140,045 | ||||||
| Intangible assets, net | 3,430,708 | 98,068 | ||||||
| Deferred sales commissions, net | 715,692 | 604,723 | ||||||
| Other investments | 52,925 | 57,786 | ||||||
| Other assets | 102,587 | 53,216 | ||||||
| Total Assets | $ | 8,270,762 | $ | 1,661,061 | ||||
| Liabilities and Partners' Capital | ||||||||
| Liabilities: | ||||||||
| Payable to brokers and dealers | $ | 882,576 | $ | 61,372 | ||||
| Payable to clients | 1,636,869 | — | ||||||
| Payable to Alliance mutual funds for share purchases | 279,249 | 254,151 | ||||||
| Accounts payable and accrued expenses | 238,640 | 164,550 | ||||||
| Accrued compensation and benefits | 313,425 | 235,120 | ||||||
| Debt | 782,232 | 390,079 | ||||||
| Minority interests in consolidated subsidiaries | 4,093 | 3,122 | ||||||
| Total Liabilities | 4,137,084 | 1,108,394 | ||||||
| Partners' Capital | 4,133,678 | 552,667 | ||||||
| Total Liabilities and Partners' Capital | $ | 8,270,762 | $ | 1,661,061 | ||||
Amounts in $ thousands. Unaudited
6
Alliance Capital(The Operating Partnership)
Consolidated Cash Flow
| | 12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| | 12/31/00 | 12/31/99 | ||||||
| Cash flows from operating activities: | ||||||||
| Net Income | $ | 668,749 | $ | 461,649 | ||||
| Non-cash items: | ||||||||
| Amortization and depreciation | 301,618 | 188,276 | ||||||
| Other, net | 79,604 | 21,766 | ||||||
| Changes in assets and liabilities, net | 233,514 | (447,608 | ) | |||||
| Net cash provided from operating activities | 1,283,485 | 224,083 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of investments, net | (213,939 | ) | (2,073 | ) | ||||
| Additions to furniture, equipment and leasehold improvements, net | (75,796 | ) | (63,496 | ) | ||||
| Proceeds of restricted cash and securities, net | (610,488 | ) | — | |||||
| Purchase of business net of cash acquired | (1,455,767 | ) | (142 | ) | ||||
| Net cash used in investing activities | (2,355,990 | ) | (65,711 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from the issuance of debt | 6,511,357 | 2,911,470 | ||||||
| Repayment of borrowings | (6,142,983 | ) | (2,722,875 | ) | ||||
| Distributions to partners | (633,162 | ) | (357,857 | ) | ||||
| Proceeds from issuance of Units to AXF | 1,601,483 | — | ||||||
| Other | (128,124 | ) | 15,889 | |||||
| Net cash provided from/(used in) financing activities | 1,208,571 | (153,373 | ) | |||||
| Net increase in cash | 136,066 | 4,999 | ||||||
| Cash at beginning of period | 80,185 | 75,186 | ||||||
| Cash at end of period | $ | 216,251 | $ | 80,185 | ||||
Amounts in $ thousands. Unaudited
7
Revenues
$2.5 billion in 2000
Amounts in $ millions.
8
Changes in Assets Under Management
Three Months Ended December 31, 2000
| | Retail | Institutional Money Management | Private Client | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Beginning of period | $ | 173,676 | $ | 210,483 | $ | 4,235 | $ | 388,394 | |||||
Bernstein Acquisition | — | 55,006 | 30,790 | 85,796 | |||||||||
Sales/new accounts | 15,987 | 7,754 | 964 | 24,705 | |||||||||
| Redemptions/terminations | (11,226 | ) | (5,286 | ) | (1,251 | ) | (17,763 | ) | |||||
| Net cash management sales | 2,802 | (615 | ) | — | 2,187 | ||||||||
| Cash flow* | — | (458 | ) | (508 | ) | (966 | ) | ||||||
| Unreinvested dividends | (1,194 | ) | (13 | ) | — | (1,207 | ) | ||||||
| Net new business | 6,369 | 1,382 | (795 | ) | 6,956 | ||||||||
| Market apprec/deprec | (16,739 | ) | (13,332 | ) | 2,604 | (27,467 | ) | ||||||
| End of period | $ | 163,306 | $ | 253,539 | $ | 36,834 | $ | 453,679 | |||||
* Cash flow represents separately managed account client flows.
Assets reflect 100% of the assets managed by the Joint Ventures. Amounts in $ millions.
9
Changes in Assets Under Management
Twelve Months Ended December 31, 2000
| | Retail | Institutional Money Management | Private Client | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Beginning of period | $ | 155,243 | $ | 207,583 | $ | 5,495 | $ | 368,321 | |||||
Bernstein Acquisition | — | 55,006 | 30,790 | 85,796 | |||||||||
Sales/new accounts | 73,332 | 18,810 | 1,467 | 93,609 | |||||||||
| Redemptions/terminations | (48,967 | ) | (11,525 | ) | (1,857 | ) | (62,349 | ) | |||||
| Net cash management sales | 2,935 | 2,819 | — | 5,754 | |||||||||
| Cash flow* | — | (5,955 | ) | (535 | ) | (6,490 | ) | ||||||
| Unreinvested dividends | (1,887 | ) | (29 | ) | — | (1,916 | ) | ||||||
| Net new business | 25,413 | 4,120 | (925 | ) | 28,608 | ||||||||
| Market apprec/deprec | (17,350 | ) | (13,170 | ) | 1,474 | (29,046 | ) | ||||||
| End of period | $ | 163,306 | $ | 253,539 | $ | 36,834 | $ | 453,679 | |||||
Actual amounts representing 12 months Alliance and 3 months Sanford C. Bernstein.
Assets reflect 100% of the assets managed by the Joint Ventures. Amounts in $ millions.
* Cash flow represents separately managed account client flows.
10
Market Share of Gross Sales of U.S.-Based Mutual Funds In Key Advisor-Assisted Channels
Nonproprietary gross sales domestic long-term funds.
Source: ICI
11
Alliance Capital(The Operating Partnership)
Retail AUM and Net Sales
(in millions)
| | | Quarters | Full Year | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | AUM 12/31/00 | Net Sales 4Q 2000 | Net Sales 4Q 1999 | Net Sales 3Q 2000 | Net Sales 2000 | Net Sales 1999 | ||||||||||||||
| U.S. Based Mutual Funds | $ | 59,443 | $ | 742 | $ | 2,625 | $ | 2,577 | $ | 9,058 | $ | 12,489 | ||||||||
| Non-U.S. Based Mutual Funds | ||||||||||||||||||||
| Luxembourg Funds | 7,090 | 425 | 490 | 688 | 2,367 | 1,266 | ||||||||||||||
| EPTA Funds | 4,389 | 427 | 859 | (416 | ) | 1,532 | 2,620 | |||||||||||||
| India | 857 | 6 | 74 | 146 | 552 | 259 | ||||||||||||||
| Japan | 2,922 | (107 | ) | (212 | ) | 39 | (600 | ) | (256 | ) | ||||||||||
| Other Funds | 700 | (9 | ) | 213 | - | (13 | ) | 141 | ||||||||||||
| Joint Venture Funds | 2,691 | 89 | (39 | ) | 388 | 126 | 553 | |||||||||||||
| Total Non-U.S. | 18,649 | 831 | 1,385 | 845 | 3,964 | 4,583 | ||||||||||||||
Separate Account Wrap | 14,514 | 825 | 949 | 1,232 | 4,981 | 3,727 | ||||||||||||||
| Variable Annuity | 41,159 | 2,363 | 466 | 437 | 6,362 | 2,053 | ||||||||||||||
| Total Long-Term | 133,765 | 4,761 | 5,425 | 5,091 | 24,365 | 22,852 | ||||||||||||||
| Cash Management | 29,541 | 2,802 | 2,686 | 2,219 | 2,935 | 4,099 | ||||||||||||||
| Total | $ | 163,306 | $ | 7,563 | $ | 8,111 | $ | 7,310 | $ | 27,300 | $ | 26,951 | ||||||||
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Alliance Capital(The Operating Partnership)
Institutional Money Management AUM and Net Sales
| | | Quarters | Full Year | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | AUM 12/31/00 | Net Sales 4Q 2000 | Net Sales 4Q 1999 | Net Sales 3Q 2000 | Net Sales 2000 | Net Sales 1999 | |||||||||||||||
| Mutual Funds | |||||||||||||||||||||
| U.S.-Based | $ | 1,335 | $ | (12 | ) | $ | (19 | ) | $ | 31 | $ | 125 | $ | (23 | ) | ||||||
| Non-U.S.-Based | |||||||||||||||||||||
| Luxembourg | 886 | 133 | 94 | 186 | 753 | 125 | |||||||||||||||
| Structured Products | 4,215 | (178 | ) | (2 | ) | (988 | ) | (1,166 | ) | 1,166 | |||||||||||
| Other | 89 | (16 | ) | — | 29 | 22 | 7 | ||||||||||||||
| Total Non-U.S. | 5,190 | (61 | ) | 92 | (773 | ) | (391 | ) | 1,298 | ||||||||||||
Separate Accounts | 238,648 | 2,083 | 667 | (907 | ) | 1,596 | 781 | ||||||||||||||
| Total Long-Term | 245,173 | 2,010 | 740 | (1,649 | ) | 1,330 | 2,056 | ||||||||||||||
| Cash Management | 8,366 | (615 | ) | 496 | 2,821 | 2,819 | 1,616 | ||||||||||||||
| Total | $ | 253,539 | $ | 1,395 | $ | 1,236 | $ | 1,172 | $ | 4,149 | $ | 3,672 | |||||||||
13
Alliance Capital(The Operating Partnership)
Private Client AUM and Net Sales
(in millions)
| | | Quarters | Full Year | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | AUM 12/31/00 | Net Sales 4Q 2000 | Net Sales 4Q 1999 | Net Sales 3Q 2000 | Net Sales 2000 | Net Sales 1999 | ||||||||||||
| Mutual Funds | $ | 11,678 | $ | (241 | ) | $ | 69 | $ | 78 | $ | (361 | ) | $ | 408 | ||||
| Separate Accounts | 25,156 | (554 | ) | 117 | 40 | (564 | ) | 209 | ||||||||||
| Total Long-Term | 36,834 | (795 | ) | 186 | 118 | (925 | ) | 617 | ||||||||||
| Cash Management | — | — | — | — | — | — | ||||||||||||
| Total | $ | 36,834 | $ | (795 | ) | $ | 186 | $ | 118 | $ | (925 | ) | $ | 617 | ||||
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Alliance Capital Investment Management Services
Alliance Capital provides diversified investment management and related services globally to a broad range of clients:
- 1.
- Retail Services consists of investment management products and services distributed to individual investors through financial intermediaries, such as brokers and financial planners by means of:
• mutual funds sponsored by Alliance Capital and affiliated joint venture companies,
• cash management products such as money market funds and deposit accounts,
• mutual fund sub-advisory relationships resulting from the efforts of the mutual fund marketing department, and
• "wrap" products;
- 2.
- Institutional Money Management Services consists of investment management services to unaffiliated parties such as corporate and public employee pension funds, endowment funds, domestic and foreign institutions and governments, and affiliates such as AXA and its insurance company subsidiaries by means of:
• separate accounts,
• mutual fund shares and classes sold principally to institutional investors and high net worth individuals,
• sub-advisory relationships resulting from the efforts of the institutional marketing department,
• hedge funds,
• structured products, and
• group trusts;
- 3.
- Private Client Services consists of investment management services provided to high net worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations and other entities by means of:
• separate accounts,
• hedge funds and
• certain other vehicles; and
- 4.
- Institutional Research Services to institutional clients by means of:
• in-depth research,
• portfolio strategy,
• trading and
• brokerage-related services.
15