ACMBernstein – Japan Strategic Value Portfolio 19 September 2007 The sale of shares in...

ACMBernstein –Japan Strategic Value Portfolio

19 September 2007

The sale of shares in AllianceBernstein funds may be restricted in certain jurisdictions. In particular, no shares may be acquired by persons in the UK except in certain circumstances and shares may not be offered or sold, directly or indirectly, in the United States or to US Persons, as described in the Fund’s prospectus. Further details may be obtained from the Distributor. A portfolio of ACMBernstein, a mutual investment fund ( fonds commun de placement) organized under the

laws of Luxembourg, which conducts business outside of Germany, Austria and Switzerland under the name AllianceBernstein. There is no guarantee that any forecasts or opinions in this material will be realized. Information should not be construed as investment advice.

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

Nicholas DavidsonSenior Portfolio ManagerBernstein Value Equities

2For financial representative use only. Not for inspection by, distribution or quotation to, the general public. Bernstein Value Equities

Agenda

Investment team

Philosophy and process

Portfolio positioning


As of June 30, 2007*$293 billion total assets under management; excludes approximately $65 billion value equity assets managed in style blend and other mandates.

Founded in 1967 with a sole focus on investment research and management

Bernstein: Our Organization

An independent unit of AllianceBernstein, a diversified investment management firm

Separate global research analysts and portfolio managers dedicated to value investing

As of June 30, 2007*$293 billion total assets under management; excludes approximately $65 billion value equity assets managed in style blend and other mandates.

OtherLocal Mandates

13%

Globaland

InternationalMandates

56%

US Mandates

31%

Bernstein Buy-Side Investment Professionals

Senior Portfolio Managers 38 20

Research 88 13

NumberAverage Years

Experience

Bernstein Asset Mix*

Bernstein Value Equities

If you need assistance with this slide, send a request to AB Workflow (New York), AB EMEA-Production (London) or AB JP-Production (Tokyo)


Bernstein - Japan Strategic Value Composite

Number of Holdings approx. 40

Premium Target 3%

Expected Tracking Error 7%

Inception Date 31 March 2002

Bernstein Japan Strategic Value

Investment Approach

Premium driven by stock selection

Value investment philosophy

Intensive fundamental research identifies companies with catalysts for improvement

Portfolio characteristics are subject to change. As of 30 June 2007Source: AllianceBernstein


Bernstein Value Equities: Our Competitive Advantage

Clear investment philosophy

Global investment research

Disciplined investment process driven bystock selection

Experienced and stable investment teams

*US Strategic Value vs. S&P 500; US Diversified Value (S&P 500 optimization) vs. S&P 500; International Value—Developed (GDP-weighted, half hedged) vs. MSCI EAFE; Global Value vs. MSCI World (Bernstein's Global Value record starts in 1995 as “Developed,” and from the end of September 2002, it includes both those accounts with emerging markets and those without); Emerging Markets Value vs. MSCI EM; European Value vs. MSCI Europe (performance premium based in euros); Canadian Value vs. S&P/TSX (performance premium based in Canadian dollars); Global Diversified Value vs. MSCI World; UK Value Plus vs. FTSE All-Share (performance premium based in sterling); International Diversified Value vs. MSCI EAFE; International Strategic Value vs. MSCI EAFE; Global Strategic Value vs. MSCI World; Japan Strategic Value vs. TOPIX (performance premium based in Japanese yen); Australian Value vs. S&P ASX 300 (performance premium based in Australian dollars). Past 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: FTSE, MSCI, S&P, TOPIX and Bernstein; see Performance Disclosures.

US Strategic Value Dec 73 +3.1%

US Diversified Value Jun 86 +1.5

International Value—Developed Jun 92 +3.1

Global Value Sep 95 +4.6

Emerging Markets Value Dec 95 +4.7

European Value Jun 97 +3.4

Canadian Value Dec 97 +5.1

Global Diversified Value Mar 98 +3.5

UK Value Plus Jun 00 +4.6

International Diversified Value Sep 00 +5.9

International Strategic Value Mar 01 +8.9

Global Strategic Value Apr 01 +9.9

Japan Strategic Value Mar 02 +9.0

Australian Value Jun 03 +3.0

ProductInception

Date

Since Inception*–

Jun 2007

Annualized Performance Premiums


Bernstein Research: A Culture of Excellence

Unique marriage of fundamental and quantitative research:

66 fundamental and 22 quantitative value analysts

Globally integrated sector coverage

High-caliber analysts with a variety of business backgrounds

As of June 30, 2007

Representative Backgrounds of Our Analysts

Cem Inal Technology FusionOne, McKinsey, Mitsubishi Electric 16

David Nelson Utilities Boston Consulting, Arthur D. Little 22

Kent Hargis Quantitative Goldman Sachs, 12Professor at the University of South Carolina

Katsuhiko Mano Banks Goldman Sachs, Boston Consulting Group, 12Bank of Tokyo-Mitsubishi UFJ

Steve Warner Media Lifetime TV, CBS 27

Years ofAnalyst Sector Experience Experience


Bernstein Research: A Culture of Excellence

Unique marriage of fundamental and quantitative research:

66 fundamental and 22 quantitative value analysts

Globally integrated sector coverage

High-caliber analysts with a variety of business backgrounds

As of June 30, 2007

Representative Backgrounds of Our Analysts

Cem Inal Technology FusionOne, McKinsey, Mitsubishi Electric 16

David Nelson Utilities Boston Consulting, Arthur D. Little 22

Kent Hargis Quantitative Goldman Sachs, 12Professor at the University of South Carolina

Katsuhiko Mano Banks Goldman Sachs, Boston Consulting Group, 12Bank of Tokyo-Mitsubishi UFJ

Steve Warner Media Lifetime TV, CBS 27

Years ofAnalyst Sector Experience Experience



As of June 30, 2007

Bernstein Japan Value: Investment Policy Group

As of June 30, 2007

Henry D’Auria

CIO—Emerging Markets Value Equities

Sharon FayCIO—Global Value Equities

Kevin SimmsDOR—Global Value Equities

Andrew ChinQuantitative Research

Masahide OokaSenior Portfolio Manager

Katsuaki OgataChairman & Chief Investment Officer

Japan Value Portfolio Team

Portfolio SpecialistsGlobal Experts

Takeo AsoDirector of Research

Average Experience in Industry: 19 Years

Average Tenure with Bernstein: 12 Years




As of August 1, 2007

Atsushi HorikawaSenior Research Analyst,Finance/Industrial Commodities

Aiko HemmiSenior Research Analyst, Transportation

Taro HiranoSenior Research Analyst, Capital Equipment/Utilities/Energy

Kayoko OharaSenior Research Analyst, Medical/Construction & Housing

Bernstein: Tokyo Team

As of August 1, 2007

Research Analysts

Fuminori AsakiQuantitative Analyst

Masahide OokaSenior Portfolio Manager

Natsuo OmoriSenior Portfolio Manager

Noboru IshidaAssociate Portfolio Manager

Sanae ShishidoAssociate Portfolio Manager

Midori Inagaki

Aki Onuka

Mayumi Hoshina

Akemi Sakano

Quantitative Analysts

Portfolio Management

Research Assistants

Takeshi IshigaSenior Research Analyst, Industrial Commodities

Daisuke KameyamaSenior Research Analyst, Consumer Cyclicals/Consumer Staples

Katsuhiko ManoResearch Analyst, Finance

Akihiro KagaResearch Associate, Capital Equipment

Research Analyst (TBH)

Masaki Nishino Consultant Relations Director

Junichiro GotoSenior Associate

Product Specialists/CRDs


Katsuaki OgataChief Investment Officer, Japanese Value Equities

Takeo AsoDirector of Research, Japan Value Equities



Our Philosophy

Investment policies apply under normal market conditions.As of 30 June 2007Source: AllianceBernstein

Based on enduring patterns of human behavior...

Loss aversion

Overreaction to short-term events

…and economic behavior

Mean reversion of returns

Cash flow ultimately determines value

ResearchConclusion

InvestmentControversy

Which?

Long-TermEarnings Power

Profits &Stock PriceDecline


BuildPortfolio

Explicit Marriage of Fundamental and Quantitative Research

Identify Value Opportunities

Investment Universe

FundamentalResearch

Quantitative Research

Select Best Ideas

Investment policies apply under normal market conditions.As of 30 June 2007Source: AllianceBernstein

Investment Process Overview


Investment Process: Identify Attractive Opportunities

Research Focus

Most Attractive

Least Attractive

HighestExpected

Return

LowestExpected

Return

60%

40%

Industry Approach

Country Approach

Global Sector vs. Globe

Global Industry vs. Global Sector

Regional Industry vs. Global Industry

Company vs. Regional Industry

Market vs. Globe

Market Sector vs. Market

Market Industry vs. Market Sector

Company vs. Market Industry


Expected Return Model

BuildPortfolio


Select Best Ideas

Investment Process: Identify Attractive Opportunities

Research Focus

Most Attractive

Least Attractive

HighestExpected

Return

LowestExpected

Return

60%

40%

Industry Approach

Country Approach

Global Sector vs. Globe

Global Industry vs. Global Sector

Regional Industry vs. Global Industry

Company vs. Regional Industry

Market vs. Globe

Market Sector vs. Market

Market Industry vs. Market Sector

Company vs. Market Industry


Expected Return Model

BuildPortfolio


Select Best Ideas


Investment Process: Select Best Ideas

Research Analyst

Five-year financial forecast

Sensitivity analysis

Quantitative model

Senior Investment Professionals

Challenge assumptions

Ensure consistency

Provide experienced perspective

Research Review

What is the investment controversy?

Does management have a corrective strategy?

What are the risks to the forecast?

What is the level of earnings quality?

Best Ideas

ValueOpportunities

Establish Conviction


BuildPortfolio


Select Best Ideas

Investment Process: Select Best Ideas

Research Analyst

Five-year financial forecast

Sensitivity analysis

Quantitative model

Senior Investment Professionals

Challenge assumptions

Ensure consistency

Provide experienced perspective

Research Review

What is the investment controversy?

Does management have a corrective strategy?

What are the risks to the forecast?

What is the level of earnings quality?

Best Ideas

ValueOpportunities

Establish Conviction


BuildPortfolio


Select Best Ideas


Investment Process: Portfolio Construction


03/08/07Last update:

From NY upfrontsSource:

PROSPECTINGUsed for:

BuildPortfolio


Select Best Ideas

Balance Risk and Opportunity

Investment Policy Group

Best Ideas Valuation

Expected Return

Conviction Portfolio and

Security Risk

TargetPortfolio

ClientPortfolio

Guidelines

Portfolio Management




Constant Re-evaluation of Return Potential

Buy

Sell

Reinvest

Ongoing review of all holdings

Stocks’ attractiveness may fall as:

Price rises

Research forecast changes

Risk increases

Proceeds are reinvested in new, more attractive opportunities

Most Attractive

Least Attractive

Fair Value

Stocks Are Candidates for Sale when They Approach Fair Value

03/08/07Last update:

From NY upfrontsSource:

PROSPECTINGUsed for:



ACMBernstein–JapanStrategic Value Portfolio 9.0 18.0% 13.5%

TOPIX Index 6.3 13.1 8.9

Relative Performance +2.7 +4.9% +4.6%

MSCI Japan Index 6.6 15.8 12.0

Relative Performance +2.4 +2.2% +1.5%

Jan-June One Since 2007 Year

Inception

Periods Ended 30 June 2007

ACMBernstein–Japan Strategic Value Portfolio: Performance Summary

Past performance does not guarantee future results.Inception date: AllianceBernstein–Japan Strategic Value Portfolio—15 December 2005Periods of more than one year are annualized Source: MSCI, TSE and AllianceBernstein; see Performance Disclosure.

In Japanese Yen, A-Shares


Bernstein Japan Strategic Value: Composite Performance Summary

Inception date: Japan Strategic Value—March 31, 2002Based on composite account. Individual accounts will vary.Periods of more than one year are annualized. Numbers may not sum due to rounding. Past 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 ¥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: MSCI, Tokyo Stock Exchange and Bernstein; see Performance Disclosure.

Japan Strategic Value 10.0% 20.8% 24.6% 21.7% 20.5%

TOPIX 6.3 13.1 15.6 12.9 11.5

Relative Performance +3.8% +7.7% +9.0% +8.9% +9.0%

MSCI Japan 6.6 15.8 17.5 13.0 11.6

Relative Performance +3.5% +5.0% +7.0% +8.7% +8.9%

In Japanese Yen

Periods Ended June 30, 2007

Jan–Jun One Three Five Since 2007 Year Years Years Inception


Value Opportunity Is at a Low

Jan 1971—June 01, 2007*Chart represents the amount by which the most attractively priced quintiles of Japanese stocks sell below overall market valuations. The proportion of Bernstein investments in stocks from thisgroup will vary over time but will typically be high. Bernstein’s estimates of fair value of these stocks may not be realized for variety of reasons. Source: Compustat, Datastream, DRI, FactSet, I/B/E/S, MSCI and Bernstein estimates

Discount to Fair Value*

0

10

20

30

40

50

60

71 73 76 79 82 85 88 91 94 97 00 03 06

Pe

rce

nt

Average




As of 30 June 2007; Holdings will vary over time.Source: TSE and AllianceBernstein; see Disclosure on Stock Examples.

Company Name

Versus TOPIX

Nissan Capital Equipment 4.3%

Mitsubishi UFJ Financial Finance 4.1

Sumitomo Mitsui Financial Finance 3.8

Nippon Mining Holdings Energy 3.7

Mitsubishi Corporation Finance 2.8

Honda Capital Equipment 2.6

Dainippon Ink & Chemicals Industrial Commodities 2.5

JFE Holdings Industrial Commodities 2.5

Leopalace21 Construction & Housing 2.5

Tokyo Electric Power Utilities 2.3

Top 10 Active Weights

Sector

Active Weight


Sector

Versus TOPIX

Energy 3.7%

Industrial Commodities 3.4

Capital Equipment 2.6

Finance 2.3

Utilities 0.8

Telecommunications 0.3

Transportation 0.2

Technology 0

Consumer Staples -1.5

Medical -2

Construction & Housing -2.8

Consumer Cyclicals -6.3

Sector Weights

Active Weight

As of 30 June 2007; Sector weightings will vary over timeSource: TSE and AllianceBernstein; see Disclosure on Stock Examples.


Current analysis and estimates do not guarantee future results.As of 30 June 2007*Next 12 monthsSource: TSE and AllianceBernstein

Price/Earnings2007E

Return on Equity*

Versus TOPIX

Portfolio Characteristics

15.9×

19.2×

ACMBernstein–JapanStrategic Value Portfolio

TOPIX Index

13.3%

10.8%

ACMBernstein–JapanStrategic Value Portfolio

TOPIX Index


Appendix


Fujitsu: Well Positioned for Japan Inc’s IT Services Spending Growth

IT Services: Sales Growth

Current analysis does not guarantee future results.As of June 2007Source: Company reports and AllianceBernstein; see Disclosure on Stock Examples.

Fujitsu has suffered from a slow pickup in IT services spending by its clientele compared with the market, and from losses in system LSI

Our research also shows Fujitsu is likely to restrain future spending on system LSI. From a long-term perspective, Fujitsu is attractively priced

With the economy steadily expanding and a labor shortage looming, IT spending growth is bound to broaden to laggard sectors like retail, regional banks and telecoms, which are Fujitsu’s client base

Japan IT Services vs. GDP Growth

Fujitsu: Price to Midcycle Earnings

17×

25×

Fujitsu Japanese Technology

Per

cen

t

(5)05

1015202530

90 92 94 96 98 00 02 04 06

(2)

0

2

4

6IT Service Growth, Average (Left Scale)

GDP Growth Rate, Real（ Right Scale)

(40)

(20)

0

20

00 02 04 06

Per

cen

t

System LSI: Operating Margin

(10)

0

10

20

30

00 02 04 06

Per

cen

t

Nomura Research Institute

Fujitsu (Services)NTT Data

Hitachi (Services)

Perce

nt


1311

Nissan PeerGroup

ROE

12×

19×

Nissan PeerGroup

PFE***

Nissan: New Models to Revive Confidence in Recovery

Nissan: Latest Medium-term Plan

Current analysis and estimates do not guarantee future results.As of June 2007*1H: April through September; 2H: October through March**Includes Daihatsu, Fuji Heavy, Hino, Honda, Mazda, Mitsubishi, Nissan, Suzuki and Toyota***Consensus FY2007 PFESource: I/B/E/S, company reports and AllianceBernstein; see Disclosure on Stock Examples.

Nissan came under pressure after pushing back its medium-term sales target as its commitment to ambitious plans, such as the 1999 “Revival Plan,” had been central to investor confidence

Nissan is valued at a significant discount. P/E and P/B are well below peer average, even though ROE is above average

While a dry spell in new model rollouts in 2005–2006 undermined sales volume and prices, particularly in the all-important US market, new products are now arriving and are well-received

Number of New Models: US and Global Markets

Valuations: Nissan vs. Japanese Peers**

3 2 32

5

1

9

65

1H:FY05* 2H:FY05 1H:FY06 2H:FY06 1H:FY07 2H:FY07E

P/B

1.52.0

Nissan PeerGroup

××

Nissan Peer Group

Total

US

%%

Operating Margin ：

Return on Invested Capital ：

Global Sales ：

Top End of Industry in FY07

20% in FY07

4.2 Mil. Vehicles in FY08Delayed by One Year


Current analysis does not guarantee future results.As of June 2007Source: Company reports and AllianceBernstein; see Disclosure on Stock Examples.

Alps Electric: Set to Overcome Hard Disk Controversy

Revenue Breakdown: FY2006

Alps Electric: Valuations

The core components business remains profitable, while other previously troubled divisions are showing signs of recovery

Operating Profit Margin: By Division

12×

25×

Alps Industry Average

(10)

0

10

20

1Q:04 4Q:04 3Q:05 2Q:06

Per

cen

t Components

Components 13%

Magnetic Devices 7%

Comm. Devices 8%

Peripheral Products 14%

Automotive Products 14%

Audiovisual Equipment 37%

Logistics and Others 7%

Peripheral Products

Comm. Devices

Automotive Products

Price to Midcycle Earnings

1.1×

3.0×

Alps Industry Average

Price to Book

Alps shares have fallen on uncertainty over a planned sale of its hard-disk-drive head business to its rival, TDK. But magnetic devices account for only 7% of the firm’s revenue

As a result of stock price decline, valuations have become compelling


Past performance does not guarantee future results. Total returns in this presentation, 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 fund shares, when redeemed, may be worth more or less than their original cost.

You may obtain updated performance information by visiting www.alliancebernstein.com/investments (click on International)

Performance Disclosure


The sale of shares in AllianceBernstein funds (offshore ACMBernstein and ACMBernstein SICAV funds) may be restricted in certain jurisdictions. In particular, no shares may be acquired by persons in the UK except in certain circumstances and shares may not be offered or sold, directly or indirectly, in the United States or to US Persons, as described in the Portfolios’ prospectus. Further details may be obtained from the Distributor.

ACMBernstein–Japan Strategic Value Portfolio

Investment Risks. Investment in the Fund entails certain risks. Investment returns and principal value of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund is meant as a vehicle for diversification and does not represent a complete investment program. Some of the principal risks of investing in the Fund include country risk, interest rate risk, currency fluctuation risk, illiquid assets risk, focused portfolio risk, portfolio turnover risk, management risk, lack of operating history risk, derivatives risk, borrowing risk, taxation risk and equity securities risk. These and other risks are described in the Fund’s prospectus. Prospective investors should read the prospectus carefully and discuss risk and the fund’s fees and charges with their financial adviser to determine if investment is appropriate for them.

AllianceBernstein (Luxembourg) S.A. is the management company of the AllianceBernstein – Japan Strategic Value Portfolio and has appointed AllianceBernstein (Singapore) Ltd. (Company Registration No. 199703364C) as its agent for service of process and as its Singapore representative.

Important Fund Disclosure

This material was originally prepared in the English language and provided only upon request to certain authorized financial representatives. AllianceBernstein, its affiliates and third-parties, make no representation or warranty relating to the quality or accuracy of any foreign language translation of this material.


References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AllianceBernstein. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for the portfolio, and it should not be assumed that investments in the securities identified were or will be profitable. Upon request, we will furnish a listing of all investments made during the prior one-year period.

Disclosure on Stock Examples

ACMBernstein – Japan Strategic Value Portfolio 19 September 2007 The sale of shares in...

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