Microsoft word - gwsequity_0811 sg.doc

AllianceBernstein— Global Equity Blend Portfolio Market Overview
during the month. The US economy detractors. Société Générale was In a highly volatile August, equity continued to falter as manufacturing also hit by speculation that France markets worldwide fell sharply, as was slower than expected and could be downgraded, after S&P’s mounting global economic woes personal income, services and cut in the US rating earlier in the accelerated investor de-risking. In a factory orders were below forecast. month. We still find both Société month that saw the economic In Europe, manufacturing in the UK Générale and ING Groep attractive. problems of the US exacerbated by contracted, German and Italian Specifically, we like Société a credit downgrade, the European industrial production decreased and Générale given the profitability of its debt crisis widening and threatening French business sentiment fell. the 17-country euro-area and, The US dollar strengthened last on its strong funding and liquidity slower growth in emerging markets, month against most major the MSCI World Index declined currencies except the yen and the 7.05%, driving the year-to-date euro. In August, the US dollar was Renault was a casualty of the return downward 3.87% into up versus the Australian dollar, deteriorating global economic negative territory (in US dollar Canadian dollar, Swiss franc and outlook in spite of strong earnings the pound sterling. Overall, the numbers. The month started on a downbeat investors in international equities. wrangled over plans to raise the All sectors in the MSCI World AstraZeneca and Pfizer. Pfizer country’s debt limit and avoid a declined in August, with capital received approval for its Xalkori government default. An eleventh equipment and industrial hour deal to raise the debt ceiling by commodities hit the hardest. type of late-stage lung cancer. up to $2.4 trillion failed to lift Consumer staples and utilities Pfizer also benefited from results markets, and culminated in S&P’s depreciated the least. rating from AAA to AA+. The middle Portfolio Performance
of the month brought a brief The Portfolio declined and reprieve, but sentiment again turned underperformed its benchmark, the impotence drug Viagra. negative on fears that S&P’s MSCI World Index, for the month downgrade of the US would spread and the year to date. Stock selection Lastly, a €1.25 billion share buyback to other countries. Adding to the was weakest in energy and plan boosted French construction gloom were reports that the Fed was financials. banks in the US, and the European Fresh fears over Europe’s debt Central Bank revealed that a euro- crisis and concerns over the health Outlook
area bank used the ECB’s 7-day and stability of the global economy Since the 2008 global financial liquidity window for the first time battered financials during August. crisis, investors have been very since February. ING Groep and Société Générale, sensitive to risk. Subsequently, as a consequence, led the when the risk of loss is perceived to AUGUST 2011 MONTHLY COMMENTARY
be greater, equities have sold off our view. We believe that our a recovering economy. Such high- more frequently and dramatically, bottom-up research and industry growth stocks are trading near the which has resulted in higher market expertise are key to avoiding those lowest premiums we have seen stocks that may not be able to since 1998. significantly since the crisis, continued economic weakness. for future earnings and are skeptical Our portfolios are concentrated in and value sleeves, the Portfolio about earnings sustainability amid a stocks with strong cash flows and offers above-market growth seeming plethora of obstacles to returns-on-equity that are now potential at a below-market price economic growth, such as high available at unusually attractive while portfolio fundamentals remain unemployment in the US, the valuations—specifically, a level of strong. European sovereign debt crisis and quality not normally available at This heightened uncertainly creates which are expected to benefit from greater investment opportunity, in their attractive market positioning in AllianceBernstein (Luxembourg) S.à.r.l. is the management company of the Portfolio and has appointed AllianceBernstein (Singapore) Ltd. (Company Registration No. 199703364C) as its agent for service of process and as its Singapore representative. Past performance is no guarantee of future results. There is no guarantee that any forecasts or opinions in these materials will be realized. This information should not be construed as an offer to sell, or solicitation of an offer to buy, or a recommendation for the securities of the fund.The sale of shares in AllianceBernstein funds may not be offered or sold, directly or indirectly in the United States or to U.S. Persons, as is more fully described in the fund's prospectus. Shares of the fund are offered only pursuant to the fund's current prospectus together with the most recent financial statements. Further details may be obtained from the fund's distributor. For additional information, or to obtain a copy of the fund's prospectus, please contact your financial advisor. Effective April 11th, 2011, AllianceBernstein (Luxembourg) S.A. changed its corporate form and name from AllianceBernstein (Luxembourg) S.A. to AllianceBernstein (Luxembourg) S.à r. l. The Management Company will constitute the same legal entity and will continue to operate 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. References to specific securities are presented for the purpose of providing information regarding a particular investment sector, or to illustrate the application of Al ianceBernstein's investment philosophy, and are not to be considered recommendations by AllianceBernstein. The specific securities identified and described above may or may not be held by the Portfolio at any given time. The transactions summarized herein represent those securities for which positions were initiated, eliminated or traded by the Portfolio, and are provided for informational purposes only. The specific securities listed do not represent all the securities purchased or sold by the Portfolio. Opinions and estimates expressed are AllianceBernstein’s present opinions only, reflecting information currently available to AllianceBernstein as well as prevailing market conditions. Such opinions involve a number of assumptions which may not prove valid, and are subject to change without notice. Not all investments in the securities identified should be assumed to be profitable and future investments may not be profitable. A list of the Portfolio's holdings is available at www.alliancebernstein.com/investments. 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, any securities or financial products. This report is not approved, reviewed or produced by MSCI. AllianceBernstein® and the AB Logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P. AUGUST 2011 MONTHLY COMMENTARY

Source: http://internetfileserver.phillip.com.sg/Poems/UnitTrust/FundView/AB210911GEBMgr.pdf