Mbs Industry Analysis

The Evolution of Defined Contribution

FPK Conference

May 21, 2009

Seth Masters

Chief Investment Officer Blend Strategies/ABDC

AllianceBernstein® and the AB AllianceBernstein logo are trademarks and service marks owned by AllianceBernstein L.P.

The Future of DC: Bundled Asset Allocation

Total DC Assets (US Market)

($ Trillion) $8.5 Tril. 3.0 Other

$4.1 Tril. 5.1 3.2

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Asset Allocation Strategies

0.1 0.7

2006

Source: McKinsey and Company, Redefining Defined Contribution, 2008 and AllianceBernstein

0.4

2015F

Stable Value

1

AllianceBernstein

Our Philosophy: Build DC Plans Around the Best of DB

Open-Architecture Institutional Structure

Integrated InsurerProvided Guarantees

Flexible and Low Cost

Secure Lifetime Income

DB Plan Benefits

Expert Investment Design

Effortless Participation

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Research-Driven Target-Date Construction

Implementation and Communications Support

2

AllianceBernstein

AllianceBernstein’s Evolving DC Focus

Focus:

Target-Date Construction

2005

2006

Milestone:

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Retirement Strategies

3

AllianceBernstein

A Thoughtful Approach to Target-Date Fund Construction

Highly regarded research on target-date fund design and management

Published report provides solid and transparent justification of each design decision

Strong simulated results achieved at every life stage using historical data as well as forward-looking projections

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Measures of downside risk fully assessed and considered

4

AllianceBernstein

AllianceBernstein’s Evolving DC Focus

Focus:

Target-Date Construction

Regulation and Communication

2005

2006

2007

Milestone:

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Retirement Strategies

Pension Protection Act

5

AllianceBernstein

Pension...