For investment professional use only. Not for inspection by, distribution or

quotation to, the general public.

AB LOW-VOLATILITY EQUITIES

Seeking Downside Protection and Smoother Performance Patterns

Kent Hargis+ 24 years’

experience+ 16 years with AB

Sammy Suzuki+ 26 years’

experience+ 25 years with AB

Volatility can be an equity investor’s worst enemy. It fosters anxiety, which can lead investors to abandon a long-term plan in the face of short-term market pressures. So for investors to enjoy the long-term strategic benefits of equities, downside protection is essential. But does it always have to mean lower returns?

AllianceBernstein’s (AB’s) Low Volatility Equity Portfolios are designed to protect investors from sharp market declines, while also aiming to outperform the market over the long term. The secret? A disciplined approach that aims to reduce portfolio losses during market downturns and fuel a stronger recovery in market rebounds.

PORTFOLIO MANAGERS

Stuart Rae+ 26 years’

experience+ 20 years with AB

Rajeev Eyunni+ 22 years’

experience+ 13 years with AB

PREPARED FOR DOWNTURNSPOISED FOR RECOVERY

Changing market conditions have taught us a few things about managing risk. The most important lesson? Delivering downside protection requires constant refining and adjusting.

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Equity investors always have to cope with downturns—even during good times. Since 1980, global equities posted annual gains in 29 years. Yet they often dropped sharply at some point during most of those years.

When markets turn unruly, investors may be tempted to rush for the exits. But history and academic research teach us that this response (and most efforts to time markets) can be costly. Investors risk locking in losses and missing out on the market’s eventual recovery.

That’s why reducing losses when markets fall and staying invested are the keys to success. To achieve this goal, our Low Volatility Equity Portfolios are designed with the following objectives in mind:

+ In rising markets: seek to capture 90% of the market’s gains

+ In falling markets: seek to capture only 70% of the market’s declines

+ Over a long-term cycle: outperform the relevant benchmark, with less volatility

These principles are based on simple mathematics. By losing less in a down market, the portfolios are in a better position to recover losses faster when the markets rise again.

Our research shows that this strategy would have delivered the following results over a 19-year period (Display, below): in global developed markets, in emerging markets and across Asian markets, a 90/70 portfolio construction would have outperformed the respective MSCI index on an annualized basis by a wide margin. And the volatility of the 90/70 portfolio would have been much lower than the benchmark as well, so investors would have enjoyed a smoother ride through unsettling bouts of turbulence.

UPSIDE/DOWNSIDE CAPTURE: THE 90/70 FORMULAMany investors want the upside of equities without the meltdowns. In fact, downside protection can actually drive outperformance in an equity portfolio.

Returns inAsian Markets

81% of Market

Returns inDeveloped Markets

79% of Market Volatility

Returns inEmerging Markets

81% of Market

7.9

4.4

90/70Portfolio

MSCIWorld

13.6

8.5

90/70Portfolio

MSCIEM

12.8

7.9

90/70Portfolio

MSCI Asiaex Japan

+3.5

+5.0 +4.9

For illustrative purposes only

Past performance does not guarantee future results.See footnotes at bottom of page.

Source: MSCI and AB

Past performance does not guarantee future results.Returns shown are for illustrative purposes only and not representative of any AB fund. Data are from 1 January 1999 through 31 December 2018.Performance was calculated by multiplying all positive monthly returns (0% or greater) of MSCI World/MSCI EM/MSCI Asia ex Japan by 90% and all negative returns (less than 0%) by 70%.

CAN DOWNSIDE PROTECTION AND BEATINGTHE MARKET COEXIST?Hypothetical 90/70 Portfolio: 19-Year Returns (Annualized, Percent)

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HOW DOES IT WORK?QSP IN ACTION To find stocks that offer quality and stability at attractive prices (QSP), our global research platform combines fundamental and quantitative research. This helps us develop a high-conviction portfolio with greater alpha potential.

BUYING HIGH-QUALITY, STABLE COMPANIES AT THE RIGHT PRICE CAN BEAT THE MARKET AND PROTECT CAPITAL.

Our approach targets companies with three fundamental characteristics:

+ Quality–companies typically have high profitability and durable competitive advantages

+ Stability–lower-risk companies with predictable earnings streams often have stocks with steadier trading patterns

+ Price–attractive valuations are essential; overpaying for down-side protection can be counterproductive

Finding companies with truly defensive traits requires a comprehensive search across a wide range of sectors.

PORTFOLIO HOLDINGS

Representative portfolio holdings as of 31 December 2018.

*Taiwan Semiconductor Manufacturing

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MICROSOFT

AMBEV

RELX GROUP

WOLTERS KLUWER

HOME DEPOT

BOEING

SHENZHOU INTERNATIONAL

NTT

TSMC*

Our investment team members designed, built and managed the portfolios together since inception. Their investing philosophy and disciplined approach are underpinned by:

+ More than two decades of investing experience on average

+ A global investment approach across regions and sectors

+ A combination of fundamental research and proprietary quantitative tools

AB LOW-VOLATILITY EQUITY PLATFORMNo matter where you want to invest, focusing on downside protection is essential.

OUR INVESTMENT TEAM SEEKS DIVERSE PORTFOLIO CANDIDATES WITH SUPERIOR RETURN POTENTIAL AND LESS RISK.

Focusing on the pattern ofperformance can help investors meet their goals and enjoy a more comfortable investing journey.

AB LOW VOLATILITY EQUITY PORTFOLIO

AB EM LOW VOLATILITY EQUITY PORTFOLIO

AB ASIA LOW VOLATILITY EQUITY PORTFOLIO*

REGIONAL FOCUS Global Developed Equities Global Emerging-Market Equities Asian Equities

BENCHMARK MSCI World Index MSCI EM Index MSCI Asia ex Japan Index

NUMBER OF HOLDINGS 70–90 70–90 60–80

INCEPTION DATE 12 December 2012 13 March 2014 30 October 2017

PORTFOLIO MANAGERSKent Hargis

Sammy Suzuki

Sammy SuzukiKent HargisStuart Rae

Rajeev EyunniSammy Suzuki

ISINI Shares LU0861579349A shares LU0861579265

I Shares LU1005412462A Shares LU1005412207

I Shares LU1675842337A Shares LU1675841958

TOTAL ASSETS UNDER MANAGEMENT US$8.0 Billion (US$3.3 Billion pooled)

AB LOW-VOLATILITY EQUITY PLATFORM

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Data as of 31 December 2018.

* Only available in Luxembourg.

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

A WORD ABOUT RISKThe value of an investment can go up or down and past performance is neither indicative of, nor a guarantee of, future results. Investment in the Portfolio entails certain risks. The 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. Some of the principal risks of investing in the Fund include emerging markets risk, portfolio turnover risk, derivatives risk, OTC derivatives counterparties risk, smaller companies risk and equities securities risk. These and other risks are described in the Fund’s Prospectus. Prospective investors should read the Prospectus carefully and discuss risks and the Fund’s fees and charges with their financial advisor to determine if the investment is appropriate for them.Dividends are not paid for all share classes and are not guaranteed. The Fund is meant as a vehicle for diversification and does not represent a complete investment program. The sale of AB funds may be restricted or subject to adverse tax consequences in certain jurisdictions. This financial promotion is directed solely at persons in jurisdictions where the funds and relevant share class are registered or who may otherwise lawfully receive it. Before investing, investors should review the Fund’s full Prospectus, together with the Fund’s Key Investor Information Document, or Product Key Facts and Product Highlights Sheet, and the 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.à r.l. by visiting www.alliancebernstein.com, or in printed form by contacting the local distributor in the jurisdictions in which the funds are authorised for distribution.

Note to European Readers: This information is issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA, it is for marketing purposes. Registered in England, No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA).

Note to Austrian and German Readers: Local paying and information agents: Austria, UniCredit Bank Austria AG, Rothschildplaz 1, 1020 Vienna; Germany—ODDO BHF Aktiengesellschaft, Bockenheimer Landstrasse 10, 60323 Frankfurt am Main.

Note to Liechtenstein Readers: The Funds are not registered for public distribution in Liechtenstein and, accordingly, shares may only be offered to a limited group of Professional Investors, in all cases and under all circumstances designed to preclude a public solicitation in Liechtenstein. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have personally been sent by AB. Neither the Funds nor the shares described therein have been subject to the review and supervision of the Liechtenstein Financial Market Authority.

Note to Swiss Readers: This document is issued by AllianceBernstein Schweiz AG, Zürich, a company registered in Switzerland under company number CHE-306.220.501. AllianceBernstein Schweiz AG is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA) as a distributor of collective investment schemes. Swiss Representative & Swiss Paying Agent: BNP Paribas Securities Services, Paris, succursale de Zürich. Registered office: Selnaustrasse 16, 8002 Zürich, Switzerland, which is also the place of performance and the place of jurisdiction for any litigation in relation to the distribution of shares in Switzerland. The Prospectus, the key investor information documents, the Articles or management regulations, and the annual and semiannual reports of the concerned fund may be requested without cost at the offices of the Swiss representative.

Note to Singapore Readers: This document has been issued by AllianceBernstein (Singapore) Ltd. (“ABSL”, Company Registration No. 199703364C). ABSL is a holder of a Capital Markets Services Licence issued by the Monetary Authority of Singapore to conduct regulated activity in fund management and dealing in securities. AllianceBernstein (Luxembourg) S.à r.l. is the management company of the portfolio and has appointed ABSL as its agent for service of process and as its Singapore representative. This document has not been reviewed by the MAS.

Note to Hong Kong Readers: This document is issued in Hong Kong by AllianceBernstein Hong Kong Limited (聯博香港有限公司), a licensed entity regulated by the Hong Kong Securities and Futures Commission. This document has not been reviewed by the Hong Kong Securities and Futures Commission.

Note to Canadian Readers: AllianceBernstein provides its investment-management services in Canada through its affiliates Sanford C. Bernstein & Co., LLC and AllianceBernstein Canada, Inc.

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.

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