Historical analysis and current forecasts do not guarantee future results. Past performance does not guarantee future results. As of December 31, 2014, unless specified otherwise.
Display 1 (2014 Returns in USD): Global high yield, global corporates, and Japan and euro-area government bonds in hedged USD terms. All other non-US returns in unhedged USD terms. An investor cannot invest directly in an index and its performance does not reflect the performance of any AB portfolio. The unmanaged index does not reflect fees and expenses associated with the active management of a portfolio. TIPS: Treasury Inflation-Protected Securities. Global REITS: Global Real Estate Investment Trusts Source: Barclays, FactSet, FTSE, MSCI, S&P Dow Jones and AB
Displays 2 and 3 (Growth and Inflation Patterns): Display 2 as of January 2, 2015; Display 3 through October 31, 2014; EEMEA: Emerging Europe, Middle East and Africa (the forecast aggregate includes Hungary, Poland, Turkey, Russia and South Africa) VAT: Value-Added Tax
Source: Haver Analytics, Office for National Statistics, US Bureau of Labor Statistics and AB
Display 4 and 5 (Differences in Monetary Policies and Rates): Display 4 through September 30, 2014; Display 5 as of December 1, 2014; Source: Bloomberg; Cabinet Office; Government of Japan; CEIC Data; Eurostat; Haver Analytics; Ministry of Internal Affairs and Communications Japan; Thomson Reuters Datastream and AB
Displays 6 and 7 (Cheaper Oil Losers and Winners): Display 6 as of September 30, 2014; Display 7 as of November 30, 2014; Global Nominal GDP: represents 2014 estimates by Energy Information Administration (EIA) and AB. Oil exporters are the 15 countries that represent the vast majority of global oil exporters. Oil importers represent the rest of the world.
Estimated Wealth Transfer is according to AB and EIA estimates. Assumes petroleum consumption remains unchanged at 2014 levels (91.4 million barrels per day)
Source: Chicago Mercantile Exchange, Energy Information Administration and Haver Analytics
Displays 8 and 9 (US: Continued Improvement in Labor Market): Display 8 through November 30, 2014; Display 9 as of December 22, 2014; Equivalent Jobs Created: revisions are only available for payroll data through September 2014. Analysis assumes that an increase of 0.1 hour in the length of the average workweek or a 10-cent increase in hourly wages is equivalent to the creation of 100,000 jobs.
Source: Haver Analytics, US Bureau of Labor Statistics and AB
Displays 10 and 11 (US Growth Continues; Consumers Step Up): Display 10: Quarter-over-quarter annualized growth through December 31, 2014. Display 11: consumer sentiment through December 31, 2014; consumer debt through September 30, 2014; Consumer Sentiment: University of Michigan Consumer Sentiment Index. Consumer Debt: Household Financial Obligation Ratio.
Source: Bureau of Economic Analysis, Haver Analytics, University of Michigan, US Federal Reserve and AB
Display 12 (Federal Funds Rate at Year-End): Market Expectations: Longer-run expectations by the market are defined as expectations for the official rates on December 31, 2019.
Source: Barclays, Bloomberg, US Federal Reserve and AB
Displays 13 and 14 (Global Bond Returns Hedged to USD): Global Bond Returns represented by Barclays government bond indices. An investor cannot invest directly in an index and its performance does not reflect the performance of any AB portfolio. The unmanaged index does not reflect fees and expenses associated with the active management of a portfolio.
Source: Barclays, Bloomberg and AB
Display 15 (Petroleum Supply Curve): As of December 3, 2014 ; For illustrative purposes only.
Source: Barclays, J.P. Morgan and S&P Leveraged Commentary Data
Display 16 (Earnings Growth to Drive Stock Returns): As of November 30, 2014; An investor cannot invest directly in an index and its performance does not reflect the performance of any AB portfolio. The unmanaged index does not reflect fees and expenses associated with the active management of a portfolio. Columns may not sum due to rounding. Five-year annualized expected return for US equities uses AB proprietary Capital Markets Engine forecasts. Chart reflects composition of expected US equity returns.
Source: Bloomberg, MSCI, S&P Dow Jones and AB
Display 17 (Concentrated Portfolios with High Active Share): Through December 31, 2013; Median Alpha Performance of Large/Mid-Cap Strategies Includes a universe of 1,253 large- and mid-capitalization US equity separate accounts with a minimum three-year track record and $100 million in strategy assets; 231 strategies have less than 35 stocks, 1,022 fall into the 36–200 bucket, and passive is represented by the top largest passive strategies (benched to the S&P 500). All data is shown gross of fees. Active share is a five-year average.
Source: Bloomberg, Lipper, Morningstar, MSCI, S&P Dow Jones and AB
Display 18 (Putting It All Together): Source: AB
The information herein reflects prevailing market conditions and our judgments, which are subject to change, as of the date of this document. In preparing this document, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Opinions and estimates may be changed without notice and involve a number of assumptions that may not prove valid. There is no guarantee that any forecasts or opinions in this material will be realized. Information should not be construed as investment advice.