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AllianceBernstein RMB Income Plus Portfolio AllianceBernstein RMB Income Plus Portfolio

Montreux, 9-11th May

Lower Volatility High YieldHow a Conservative High-Yield Strategy Can Help Investors in Uncertain Markets

Best Large Bond Group 2012

Jeremy Cunningham, CFASenior Portfolio Manager—Fixed Income

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 Services Authority (FSA – Reference Number 147956). This information is directed at Professional Clients only and is not intended for public use. 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. The value of investments can go down as well as up and investors may not get back the full amount invested. ©2012 AllianceBernstein

AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public.

Low Yields Pose an Investment Dilemma

1

Yield data through February 29, 2012. Yield curve data as of March 2, 2012.Source: Barclays Capital and AllianceBernstein

Short Rates are Near ZeroYields Have Been Falling

0.0

2.0

4.0

6.0

8.0

10.0

12.0

01 02 03 04 05 06 07 08 09 10 11 12

US Intermeidate Corp.

(Financials Only)

US Intermediate

Corporates (ex-Financials)

5 Year Treasuries

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 5 10 15 20 25 30

Years to Maturity

US Treasuries

AllianceBernstein.com For financial representative use only. Not for inspection by, distribution or quotation to, the general public. 2

7.3% 7.3%

5.6%6.4%

9.3%

15.8%

Low Volatility HY US HY World Equity

Equities vs. High Yield1994-Present

High Yield Offers Attractive Returns with Lower Volatility Than Equities

In USD. Historical information provided for illustrative purpose only. Returns and volatility are annualized for January 1994–November 2011*Bonds are represented by Barclays Aggregate IndexWorld Equities are represented by the MSCI World Index. US High Yield is represented by the Barclays Capital US High Yield 2% Capped Index, Short Duration HY is represented by the Barclays Capital US HY Ba/B 2% Capped 1-5 Yr IndexSource: Barclays Capital and AllianceBernstein

2

Annualized VolatilityAnnualized Return

Correlations Bonds* Equities

Low Volatility High Yield

0.16 0.50

High Yield 0.22 0.61


AllianceBernstein Market Cycle Indicator

333

� Our Market Cycle Indicator (MCI) is a proprietary tool we use to identify current phase and phase transitions

Green dots are representations of points in time. Returns are Barclays Capital US HY 2% Issuer Constrained average annualized monthly returns from January 1993 to June 2011. Historical information provided for illustrative purpose only. Source: Barclays Capital, Bloomberg and AllianceBernstein

10/31/2008

3/31/2007

MCI Positive, Increasing

MCI Negative,Increasing

MCINegative,

Decreasing

2/28/2010

MCI Positive, Decreasing

� The phase of the cycle helps to better inform our risk budgeting decision

2/28/2011

Crisis RecoveryRally Carry

Phase III Phase IVPhase I Phase II

(14.9)

%

(7.5)%

(23.3)

%

USHY

BB

USHY

B

USHY

CCC

18.7% 20.2% 19.7%

USHY

BB

USHY

B

USHY

CCC

10.5% 8.7%6.0%

USHY

BB

USHY

B

USHY

CCC

16.7%21.1%

39.0%

USHY

BB

USHY

B

USHY

CCC


Low Volatility High Yield: A Focus on Conservative High Yield Strategies

High Yield

Shorten DurationHigh Yield 1-5 Year

ImproveCredit QualityHigh Yield BB

Employ Hedging StrategiesHigh Yield + Hedging

Annualized Return Annualized Volatility

7.91%

1993–Present Sharpe Ratio

8.80% 0.90

8.33% 7.47% 1.12

8.64% 7.03% 1.23

Historical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield Index members with an Option Adjusted Duration of 1-5 years. BB represented by the Barclays Capital US High Yield 2% Issuer Constrained-BB Index. ‘High Yield + Hedging Strategies’ represented by the Barclays Capital US HY 2% Issuer Constrained Index with 15% of yield spent on hedges using 5% out of money S&P puts.Source: Barclays Capital, Bloomberg and AllianceBernstein

4

Over the long term, a conservative approach improves risk-adjusted return potential

May reduce return

Objective is toreduce volatility

Expected result:Higher Long Term Information Ratio


Emphasize Shorter Duration

� Benefit: In a high yield bear market, lower duration bonds hold their value better and historically have outperformed comparable bonds with higher durations

� Cost: In a high yield bull market, lower duration bonds will underperform comparable higher duration bonds

� Over a full market cycle: shorter duration high yield bonds have delivered superior risk-adjusted returns than the broader high yield market

(2.1)%

1.7%

(1.4)%

1.4%

High Yield High Yield 1–5Yr

Historical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield Index members with an Option Adjusted Duration of 1-5 years. Source: Barclays Capital and AllianceBernstein

High Yield vs. Short Duration High Yield: Performance

Average Monthly Returns, 1993–present

When High Yield is Up

When High Yield is Down

The lower the duration of a bond, the less sensitive its price is to changes in its yield

Shorten Duration

Improve Credit Quality

Employ Hedging Strategies

5


Focus on Higher Credit Quality

� Benefit: In a high yield bear market, higher rated bonds hold their value better and significantly outperform comparable bonds with lower ratings

� Cost: In a high yield bull market, the lowest quality bonds often perform best in ‘the dash to trash’

� Over a full market cycle: higher quality (BB rated) high-yield bonds have outperformed the broader high-yield market over full market cycles and delivered lower volatility

(2.1)%

1.7%

(1.5)%

1.5%

High Yield Market BB High Yield

Historical analysis does not guarantee future results.As of December 31, 2011HY represented by Barclays Capital US High Yield 2% Issuer Constrained Index. Short Duration represented by Barclays Capital US High Yield 2% Issuer Constrained Index members with a BB credit quality.Source: Barclays Capital and AllianceBernstein

High Yield vs. BB High Yield: Performance

Average Monthly Returns, 1993–present

When High Yield is Up

When High Yield is Down

Higher rated high-yield bonds have systematically outperformed lower-rated bonds over a market cycle

Shorten Duration



6


Characteristics of the High Yield Market

As of December 31, 2011Based on the Barclays Capital Global High Yield Index*Calculated using all bonds in the index with an option adjusted duration of 5 years and less Numbers may not sum due to rounding.

Average Rating: B

5+

36%

0-3

27%

3-5

37%

BB47%

B40%

CCC11%

CC1%

NR 0.2%

C0.4%

Average Duration: 4.4 Years

LOW VOLATILITY HIGH YIELD UNIVERSE*:1100+ issuers with over $900 billion nominal of bonds outstanding


Current Risk Premium Percent

0.0

2.0

4.0

6.0

8.0

10.0

12.0

AA A BBB BB B CCC

Implied Premium Average Loss Last 5 Years

Historical analysis does not guarantee future results.Average Loss Last 5 Years is as of December 2010. The losses are based on issuer-weighted default rates and issuer-weighted senior unsecured bond recovery rates. Spread levels are as of February 29, 2012Source: Barclays Capital, Moody’s and AllianceBernstein

Spreads Adjusted for 2008 Cycle Losses Offer High Risk Premia ex CCCs

8


Historical analysis do not guarantee future results.As of December 31, 2011Source: AllianceBernstein

9

Implement Dynamic Hedging to Manage Volatility

AllianceBernstein Short Duration High Yield PortfolioCan Access a Range of Hedging Strategies

Focus on Higher

Credit Quality

EmphasizeShorter Duration

Implement Dynamic HedgingTo Manage Volatility

ShortDuration

High Yield Portfolio

9

Portfolio

Equity Put Options

Bond Futures/Swaps

CreditDefault Swaps

CreditTranches

Currency Options

We apply hedging strategies designed

to mitigate volatility and buffer the

portfolio during extreme market stress

Shorten Duration




Hedging Strategies to Offset or Reduce Risk in PortfolioExample trades

Hedge Idea Implementation Impact

Yield Curve

If growth is anaemic inflation risk will fall (deflation risk increase), longer dated bond yields fall, and credit spreads widen. 5-7yr part of US Treasury curve was steepest and offered the opportunity to enter a curve flattener at zero cost.

� Long 7 year and Short 5 year treasuries (curve flattener).

� Cost: zero cash outlay.

Gains on yield curve flattener offset losses from credit spread widening

Currency

If growth is anaemic commodity prices likely to fall, with a knock-on effect on commodity currencies.

� Long AUD put / USD call

� Cost: Currency option cheaper to buy than high yield index option.

Gains on currency put option should offset losses on high yield portfolio

If the Eurozone sovereign debt crisis escalates, this may lead to a weaker Euro and be the likely catalyst for further sell-off of risky assets, including high yield

� Long EUR put / USD call

� Cost: currency option cheaper to buy than high yield index option.

Gains on currency put option should offset losses on high yield portfolio

CDS

If risk aversion increases, spreads on all credit markets will widen further. In the event of a severe sell off, we would expect more downside risk in EM and Investment Grade markets, which have proven more resilient over Q3, versus high yield, which is already pricing in a more negative outlook.

� Buy Protection on Investment Grade Corporate and Emerging Market Indices.

� Cost: Lower cost versus buying protection on high yield indices

Gains on CDS protection should partially offset losses in high yield portfolio

Equity Options

If the market environment is negative for companies, equity markets, which have held up better than high yield over Q3, should fall more sharply than implied by the relative pricing of equity and HY put options.

� Long put options on S&P equity index, short put option on HY CDX Index.

� Cost: zero cash outlay, as sale of HY puts funded purchase of equity puts

Gains on equity index put options will offset losses on high yield sell-off

Examples listed include all hedging trades initiated between 1 Aug 2011 and 14 Nov 2011. Subsequent to initiation, hedge positions may have been increased or closed.Historical information provided for illustrative purpose only.

Shorten Duration




AllianceBernstein Short Duration High Yield Portfolio:Performance Summary

Period Ended March 31, 2012

1Q2012

4Q2011

3Q2011

SinceInception

Short Duration High Yield Portfolio USD I2 Share Class

3.8% 5.0% (5.6)% 2.9%

Barclays Capital Global High Yield Corporates 1–5 year Ba/B Index (USD Hedged)

6.4 4.3 (5.6) 4.7

Relative Performance (2.6)% +0.7% 0.0% (1.8)%

Barclays Capital Global High Yield Corporates Index (USD Hedged)

6.8 5.9 (8.0) 4.3%

Relative Performance (3.0)% (0.9)% +2.4% (1.4)%

� Comment on the most recent quarter:o The portfolio was defensively positioned underweight European names, which rebounded strongly over Q1, leading to

underperformance relative to the fund’s benchmark.

� Long term performance expectations:o This strategy is expected to outperform the broader high yield market when high yield is down, but to lag when the high

yield market is up. o As the strategy is expected to capture most of the return of the high yield market over a market cycle with lower volatility

than the broader high yield, market, it is expected to generate superior risk adjusted returns over the long term.

Past performance does not guarantee future results.In US dollars. Data are preliminary; numbers may not sum due to rounding.Inception date: AllianceBernstein—Short Duration High Yield Portfolio (class I2)—29 July 2011Performance is represented by Class A shares and is calculated at NAV with all dividends reinvested. Performance for more recent periods may be different from that shown. Total returns, provided by AllianceBernstein, reflect the change in net asset value and assume reinvestment of any distributions paid on fund shares for the period shown, but do not reflect sales charges. Accordingly, these figures do not represent actual returns to an investor. The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Source: Barclays Capital, JPMorgan Chase and AllianceBernstein


Low Volatility High Yield: What Investors Should Expect

�Over a market cycle:

�Expected to capture most of the return of the high yield market

�With lower volatility than the broader high yield market

�Expected to deliver superior risk adjusted returns over a market cycle

�High Yield Bull Market:

�Low beta, conservative approach lags broader high yield market

�High Yield Bear Market:

�Low beta, conservative approach outperforms broader high yield market


As of 31 March 2012. All data is subject to change.*Credit exposures by sector and by rating covers credit holdings within the portfolio only, and excludes from consideration any holdings in cash, currency forwards, currency options, interest rate swaps and any AA- or higher rated government bond holdings.**Fixed income exposures by country of risk excludes from consideration any holdings in cash, currency forwards and currency options.Source: AllianceBernstein

Duration and Yield

Portfolio Duration 2.8 years

Net Distribution Yield

AT Share Class 4.42%

BT Share Class 3.54%

AT Share Class EUR hedged 3.53%

AT Share Class GBP hedged 2.89%

Credit Exposures by Sector *

Corporate Industrials67.7%

Bank Loans6.7%

Commercial Mortgage Backed Secs (CMBS)

2.2%Corporate Utilities

3.3%Corporate Financials

4.6%Emerging Market Quasi-Sovereign

1.8%Emerging Market

Sovereigns1.4%

Preferred Shares1.6%

Creditbaskets10.9%

Credit Exposure by Rating*: Average Rating BB

Investment Grade7.8%

BB27.3%

B64.9%

Fixed Income Exposures by Country**

United States76.2%

Luxembourg8.9%

Great Britain3.2%

Other EM3.1%Other4.8%

BRICS1.9%

New Zealand 1.0%

Germany1.0%

AllianceBernstein Short Duration High Yield: Portfolio Exposures and Characteristics


Inception 29-July-2011

Domicile Luxembourg

ISINs LU0654560100 USD

LU0654561173 EUR-Hedged

Management Fees 0.55%

AllianceBernstein Short Duration High Yield PortfolioFund Information

For more information please visit us at:www.alliancebernstein.com/solution/fixed-income-EU


Contact Details

15

Client Team

� Georg Kyd-RebenburgSenior Vice President and Managing [email protected]+49 (0) 89 255 40 103

� Peter StiefelDirector Switzerland

[email protected]

+41 (0) 22 310 9082

� Wolfgang KostnerVice President

[email protected]

+49 (0) 89 255 40 122

Investment Team

� Jeremy CunninghamSenior Portfolio Manager—Fixed Income

[email protected]

+44 (0) 20 7470 1507


Appendix


AllianceBernstein High Yield Product Platform

Service Typical Benchmark Primary Sectors Typical Currency

Global High YieldGlobal High Yield, or a Blended Benchmark of Global High Yield and Emerging Markets

Corporates, emerging market debt (local & hard currency), other high yielding debt securities

10-20% (Max 50% non-US)

US High Yield Barclays US High Yield 2% Capped Corporates and related derivatives <5% (Max 10% non-USD)

Euro High Yield Barclays Euro High Yield 2% Capped Corporates and related derivatives 0% (Max 30% non Euro)

Short Duration High Yield Barclays Global 1-5 Year Ba/B Corporates and related derivatives 0% (Max 20% non-USD)

Source: AllianceBernstein

Our product platform captures a wide range of opportunities


AllianceBernstein Short Duration High Yield Portfolio: Exceeding Expectations

18

(2.2)

4.7

(1.4)

2.1 2.5

1.4

(0.1)

(4.3)

5.5

(2.5)

2.0

3.8

2.4

0.2

(3.3)

6.0

(2.2)

2.7 3.0

2.4

(0.1)

Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Short Duration High Yield Global High Yield BC US HY 2% Issuer Capped

In US dollars Data are preliminary.Inception dates: Global High Yield—September 23, 1997; Short Duration High Yield—July 31, 2011Past performance is no guarantee of future results. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees;the client’s return will be reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account, paying a 0.50% annual fee, with a given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part II of AllianceBernstein’s Form ADV.Source: Barclays Capital and AllianceBernstein

Monthly Performance (%)


Fixed Income at Alliance Bernstein:Our Credentials in Managing Fixed Income

Key advantages:

� Experienced and Well Resourced Team

� 40-year track record in managing fixed income strategies (Since 1971)

� Managing high yield since 1987 and Emerging Market Debt since 1989

� Manager of the largest High Yield fund in Luxembourg: AllianceBernstein Global High Yield Portfolio

� Well-resourced team with depth and breadth of experience and coverage

� Effective Investment Process

� Globally integrated team and approach

� A true reliance on both quantitative and qualitative research

� Top-down analysis and active sector selection complement bottom-up credit analysis

19

As of 31 December 2011


AllianceBernstein: A Leader in Fixed Income Investing

Fixed-Income Assets Under Management: $213 Billion

Credit

$81 billion

Global Multi-Sector*

$57 billion

Emerging Mkts/ High Income

$45 billion

US Tax-Exempt

$30 billion

Research Analysts

55

Portfolio Managers

47

Global Resources

Traders

16

As of March 31, 2012*Includes global and regional single and multi-sector mandates

20


AllianceBernstein Is Positioned to Capitalize on Global Opportunities

21

As of March 31, 2012

Investment Managementand/or Research

LondonEconomic ResearchCredit ResearchQuantitative ResearchPortfolio Management

New YorkEconomic ResearchCredit ResearchQuantitative ResearchPortfolio Management

MelbourneEconomic ResearchCredit ResearchQuantitative ResearchPortfolio Management

TokyoCredit ResearchPortfolio Management

Hong KongEconomic ResearchPortfolio Management

MontréalPortfolio Management

SingaporeCredit Research


Unparalleled Resources Located Around the World

� Substantial commitment to fixed income research

Number of Research Analysts

As of March 31, 2012*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†Includes Passive, Defined Contribution, Dynamic Asset Allocation and Asset Allocation portfolio managers††Includes Real Estate, Energy, Currency and FoF portfolio managersSource: AllianceBernstein

� Experienced team of investment professionals

Number of Portfolio Managers and Average Experience

EquitiesFixed

Income*Multi-

Asset** Alternatives

***Total

Fundamental 73 39 0 10 135

Quantitative 11 9 28 10 58

Economist 0 7 0 0 7

Total Analysts 84 55 28 20 200

Total Yrs Exp

Equities 54 23

Fixed Income 47 21

Multi-Asset† 11 21

Alternatives†† 11 21

Wealth Management

14 26


An Award-winning Fixed Income Team

Winner of the Lipper Fund Awards 2012

AllianceBernstein was awarded the top fixed income award in Europe, Austria, Germany and Switzerland, by Lipper, the mutual fund rating agency. In total we received 17 awards including the prestigious “Best Large Bond Group“ Award:

Asset Class Group Award

Best Large Bond Group

Fund Awards

Emerging Markets Debt Portfolio

European Income Portfolio

Global High Yield Portfolio

23

Winner of Feri EuroRating Awards: Fund Innovation

The AllianceBernstein Renminbi Income Plus Portfolio, launched in May 2011, has been awarded this year’s Feri EuroRating Award for the most innovative fund in the German, Swiss and Austrian markets.

The Renminbi Income Plus Portfolio was designed for investors who want to gain exposure to the rising Chinese currency, as well as receive high-yielding income.


AllianceBernstein Fixed Income Product Range:Luxembourg-based Products

24

All data as of December 31, 2011


A Word About Risk

A WORD ABOUT RISKMarket 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 sale of AllianceBernstein funds may be restricted in certain jurisdictions, as detailed in the funds prospectuses. Before investing in the shares of any AllianceBernstein funds, investors should review the funds current simplified and/or full prospectus, together with the fund’s 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 each of the regions 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.

©2012 AllianceBernstein L.P. www.alliancebernstein.com

alliance bernstein

Economy & Finance

guarantee

employ hedging

currency put

currency option

improve credit

option adjusted

full market

average monthly