For financial adviser use only. Not to be distributed to, or relied upon by, retail clients.

AllianceBernstein:Total assets by channel and asset class

By Channel

By Asset Class

Institutional52%

Retail33%

Private Client15%

Assets Under Management Total: US$454 Bil.*

As of 31 March 2014 *Source: AllianceBernstein

Multi-Asset13%

Structured/Index 9%

Fixed Income

55%

Equities20%

Other 3%

For financial adviser use only. Not to be distributed to, or relied upon by, retail clients.

Why is Dynamic De-risking important?Portfolio volatility can vary dramatically

Simulated Portfolio Volatility Static Asset Allocation Assuming 50/50 Equities and Bonds Hedged to GBP

The simulation was based on the AB Global Strategy 50/50 GBP portfolio allocation using daily returns with weekly rebalancing and fully hedged to GBP over the 10 year period from 30 June 2003–30 June 2013. Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Results exclude estimates of trading costs and market impact. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve returns or a volatility profile similar to those being shown. See Important Information. Historical information provided for illustrative purposes only Source: AllianceBernstein

While the average risk of a balanced portfolio is moderate over long periods, in the interim, the risk can vary dramatically depending on the market environment.

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Average volatility 6.3%

For financial adviser use only. Not to be distributed to, or relied upon by, retail clients.

Why is Dynamic De-risking important?Aims to lower overall portfolio risk

Simulated Portfolio Volatility Static Allocation vs. Target Volatility Allocation (assumes 50/50 Equities and Bonds Hedged to GBP)

The simulation was based on the AllianceBernstein Global Strategy 50/50 portfolio allocation using daily returns with weekly rebalancing and fully hedged to GBP over the 10 year period from 30 June 2003–30 June 2013. The simulation results which incorporate the Target Volatility model dynamically reduce exposure to capital markets during periods of high volatility and assume a 6.5% Target Volatility. Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Results exclude estimates of trading costs and market impact. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve returns or a volatility profile similar to those being shown. See Important Information.

The Target Volatility mechanism aims to reduce exposure to “riskier” assets during periods of higher market volatility.

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Jul 07 Feb 08 Oct 08 Jun 09 Feb 10 Oct 10 Jun 11 Feb 12 Oct 12 Jun 13 Feb 14 Oct 14 Jun 15 Feb 16 Oct 16 Jun 17

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Percent Invested in Risky Assets

50/50

VOLATILITY 50/50 without

Target VolatilityVOLATILITY

50/50 with Target Volatility

For financial adviser use only. Not to be distributed to, or relied upon by, retail clients.

Why is this important?

It is harder to recover a loss, than it is to make a gain.

% lossSource: BNY Mellon. Joint Investment Forum Absolute return: searching for returns independent of market conditions , January 2014

% Gain needed

For financial adviser use only. Not to be distributed to, or relied upon by, retail clients.

Where next for the Markets?