A Division of Wiley Bros. – Section Three Why Asset Allocation Matters The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Individual Investors Have Underperformed Benchmarks Annualized Returns 1985–2005 S&P 500 Inflation Average Stock Fund Investor Lehman Aggregate Bond Index Average Bond Fund Investor The Phillips Group of *THE ABOVE PRICES, QUOTES, YIELDS, ETC. HAVE BEEN OBTAINED FROM SOURCES WE BELIEVE TO BE RELIABLE, BUT CANNOT BE GUARANTEED. ERRORS AND OMISSIONS EXCEPTED. A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Step One: The Importance of Asset Allocation The Phillips Group believes that portfolios should be managed in accordance with a strategic asset allocation plan that thoroughly reflects an investor’s long-term objectives and risk tolerance. Research has shown that allocation of assets among stocks, bonds, and cash equivalents is the primary determinant of long-term investment results. Since each asset class responds differently to shifts in the economy and financial markets, each asset class adds its own dimension to a portfolio’s performance. Active and effective allocation is the key to enhancing results. Many non-U.S. stocks and bonds have historically had relatively low correlations with U.S. stocks and bonds as well as with each other. A carefully selected portfolio of domestic and international securities offers significant diversification opportunities while potentially lowering the portfolio’s volatility and increasing its returns. The Brinson, Hood & Beebower Study, conducted in 1987, and updated in 1991, found that nearly 92% of the variation in pension funds' returns from 1977 to 1987 were attributable to the asset allocation decision. Source Ibbotson Associates. Note Study based on ten years of quarterly data. Cross products account for 2.1% of the variance. The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Step Two: Combine Low Correlated Assets 1984–2005 High Correlation 1.0 US Growth US Value US Small-Cap International REITs High Yield Intermediate-Term Bonds Short-Term Bonds No Correlation 0 Cash The Phillips Group of *THE ABOVE PRICES, QUOTES, YIELDS, ETC. HAVE BEEN OBTAINED FROM SOURCES WE BELIEVE TO BE RELIABLE, BUT CANNOT BE GUARANTEED. ERRORS AND OMISSIONS EXCEPTED. A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy The Benefit of Low Correlation US Stocks US Bonds Dec 68–Jun 70 Jan 73–Sep 74 Jan 77–Feb 78 Dec 80–Jul 82 Sep 87–Nov 87 Jun 90–Oct 90 May 98–Aug 98 Apr 00–Mar 03 Average (29.2)% (42.7) (14.2) (17.2) (29.6) (14.7) (13.4) (40.9) (25.2)% 2.2% 4.6 1.5 21.7 2.3 5.2 4.7 36.5 9.8% The Phillips Group of *THE ABOVE PRICES, QUOTES, YIELDS, ETC. HAVE BEEN OBTAINED FROM SOURCES WE BELIEVE TO BE RELIABLE, BUT CANNOT BE GUARANTEED. ERRORS AND OMISSIONS EXCEPTED. A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Why Stock and Bond Combinations 1970−2005 100% Stocks 60/40 30/70 100% Bonds Risk (%) The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Step Three: Combine Growth and Value Annualized Returns Value Stocks Growth Stocks The Phillips Group of *THE ABOVE PRICES, QUOTES, YIELDS, ETC. HAVE BEEN OBTAINED FROM SOURCES WE BELIEVE TO BE RELIABLE, BUT CANNOT BE GUARANTEED. ERRORS AND OMISSIONS EXCEPTED. A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Step Four: Globalize the Portfolio 1970−2004 Volatility (%) The third step in the strategy is to invest a portion of the assets overseas. Sure, we know that international stocks haven’t done as well as U.S. stocks over the past decade- but since the EAFE Index started keeping track over 33 years ago, we’ve seen leadership alternate back and forth between the US and foreign markets quite a few times. And we’ve discovered that these leadership cycles typically last a fairly long time, and can be pretty substantial in terms of their difference in magnitude. Our extensive research on international allocations suggest that about 30% of a portfolio should be invested overseas, including some modest exposure of up to 5% in emerging markets too, because of their historically low correlation to U.S. stocks. This approach would have resulted in returns that were very similar to a 100% US equity-only portfolio over the long term, yet with lower risk and more consistency! % in Foreign Stocks Past performance is no guarantee of future results. Through December 31, 2004 US Stocks are represented by the S&P 500 Index of stocks. Foreign stocks are represented by the MSCI (Morgan Stanley Capital International) EAFE Index. The chart presents various combinations of the US and Foreign Stock components, including the highlighted 70% U.S/30% foreign combination. An investor cannot invest directly in an index, and its results are not indicative of any investment, including the Wealth Strategies Funds. Volatility is defined as the annualized standard deviation of portfolio returns for the period from 1970 to 2004. Source: MSCI, Standard & Poor’s and AllianceBernstein. The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Larger Universe of Opportunity Non-US Share of Industry By Market Value: December 31, 2005 Examples Toyota Daimler Chrysler 82% HSBC Holdings UBS 72% Let’s not overlook the fact that there is an enormous opportunity set of potential investments that just happen to be based outside the United States. Almost 50 % of the world’s stock market capitalization is outside the borders of the US And if you look at the world’s top industry leaders in sectors such as automobiles, oil and gas, and banking, many of the best companies are found outside the United States. Take automobiles for example. Would you really want to be limited to just Ford or GM products? Or, would you consider the quality of Toyota, BMW and Nissan when buying/leasing a car? We believe not only does international exposure reduce risk and provide attractive return potential, bit it also provides a better opportunity set to choose among for the portfolio. BP Shell 60% International investing is subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in political and economic conditions Source: MSCI World Index The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

Correlations with US Stock Market A Division of Wiley Bros. – Our Investment Philosophy US Multinationals Do Not Diversify as Well Correlations with US Stock Market 1975–2004 Performance in step with S&P 500 1.00 Multinational US Companies % of Sales Outside US 0.87 ExxonMobil 79% AFLAC 75 Intel 71 Motorola 68 Coca-Cola 68 Colgate-Palmolive 67 Avon 65 McDonald’s 65 Gillette 61 IBM 60 EAFE Index 0.56 And its also important to know that buying stock in US based multinationals -- often times the “logic” used to rationalize foreign market exposure -- really hasn’t been an effective way to achieve diversification. Our research shows that larger US multinational companies such as those listed on the slide have performed very much like US stocks over the past 33 years. Their correlation to the S&P 500 index was quite high -- .87 -- while the correlation of the EAFE index of foreign stocks has been significantly lower at .56. Sometimes the logic of the “theory” just can’t be supported by the statistical proof, and this seems to be a good example. No relationship with S&P 500 Past performance is no guarantee of future results. Through December 31, 2004 Morgan Stanley Capital International (MSCI) EAFE Index, unhedged Indexes are unmanaged and do not include fees and expenses associated with an investment in a mutual fund. An investor cannot invest directly in an index, and its results are not indicative of any specific investment including any AllianceBernstein mutual fund. See page 39 for a description of each index. Source: MSCI, Standard & Poor’s and AllianceBernstein The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Ancillary Services Step Five: Rebalance Higher Probability Rebalancing increases the consistency of returns Rebalanced Rebalancing reduces the likelihood of bad outcomes Unrebalanced Unrebalanced Rebalancing increases the median return Lower Probability The Phillips Group of Median Return A Division of Wiley Bros. – Aintree Capital, LLC

A Division of Wiley Bros. – Our Investment Philosophy Step Five: Rebalance Hypothetical Average Annual Return 1970–2004 Well, we think that maintaining an equal exposure to both is the way to go, since trying to time the cycles is futile. Here’s an example of why…. If you invested in the indexes reflected in the chart and had perfect foresight, and switched between growth and value at the perfect time, every time - you'd have an 18.6% annual return from 1970-2004. If that dropped to being correct 67% of the time, your return would have been 11.1% annually. If you were correct half of the time, your return would have been 8.8% annually. However, with a constant 50/50 blend of growth and value, your portfolio would have averaged a 12.4% annualized return. This is better performance than all the leading benchmark indices, including the S&P 500, the Russell 1000 Growth, and the Russell 1000 Value indices over the same time period. But the next big question is : Do you have the ability or time to rebalance your portfolio and maintain a 50/50 blend? Past performance is no guarantee of future results. The chart above shows the average annual historical return of an investment in “growth” stocks and “value” stocks (as defined below) where the investors decision to time the growth or value cycle, on an annual basis, is shown in percentages of how correct in hindsight their timing to switch was. A 50/50 blend investment with automatic rebalancing annually is in yelow. The “growth” and “value” stocks used in this presentation are determined as follows: beginning with all publicly traded stocks on the US stock exchanges (not just the S&P 500), the 30% of stocks with the highest price-to-book ratios represent “Growth.” The 30% of the stocks with the lowest price-to-book ratios represent “Value.” The middle 40% of the companies are excluded. These returns do not include fees and expenses associated with an investment in a mutual fund. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including any AllianceBernstein mutual fund. *Assumes an attempt to market time but invest in the lower performer (value or growth) during the years in which the difference between the two was highest, missing the best 33% or best 50% Source: Fama/French and AllianceBernstein The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC

Blending Styles Adds Consistency Our Investment Philosophy Blending Styles Adds Consistency % of Time Rebalanced 50/50 Blend Outperformed the S&P 500 1970–2005 Not only did a 50/50 blend enhance return potential, but over time it produced more consistent returns. Here we can see that over rolling 1-3-5- and 10 year time periods, a blended strategy provided the type of consistency that most investors generally prefer. The positive impact of style rebalancing gets stronger and stronger as your time horizon lengthens, increasing the likelihood of greater consistency over time. Indeed, over 10-year rolling periods, a rebalanced portfolio of the asset classes represented in the chart beat the S&P 500 90% of the time. What may appear as a humble strategy actually becomes attractive both from a risk and a return perspective. Past performance is no guarantee of future results. Rolling periods are measured from January 1, 1970 through December 31, 2004 The 50/50 growth and value composite is a hypothetical composite comprising 50% “growth stocks” (i.e., the top 30% of all stocks publicly traded on American exchanges ranked by price-to-book ratios) and 50% value stocks (i.e., the bottom 30% of such stocks). The 50/50 portfolio is rebalanced monthly, as necessary, to maintain its growth and value proportions; transaction charges for rebalancing are not taken into account Source: Fama/French, Standard & Poors The Phillips Group of A Division of Wiley Bros. – Aintree Capital, LLC