Data Digest

European Fund Market2018 Review

Data Digest 2018 02072018

Page 123

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For more information about Broadridge pleasevisit broadridgecom

Jeacuterocircme Couteur - Product Manager jeromecouteurbroadridgecom

Barbara Ferraresi - Product Manager barbaraferraresibroadridgecom

Diana Mackay - Editorial dmmackaywilliamscom

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About BroadridgeAuthor Informaon

Global Market Intelligence (GMI) reflects ourexpertise and understanding of marketsworldwide and of the evolving needs of assetmanagers

To learn more and to schedule a free demo ofGlobal Marketing Intelligence (GMI) visitwwwbroadridgecomGMI

For more information please contactlauracohenbroadridgecom

Database Featured

EUROPEAN FUND MARKET REVIEW 2018 EDITION

Page 223

Broadridge a global fintech leader with over $8billion in market capitalization providescommunications technology data and analyticsWe help drive business transformation for ourclients with solutions for enriching clientengagement navigating risk optimizingefficiency and generating revenue growth

For more information about Broadridge pleasevisit broadridgecom

Jeacuterocircme Couteur - Product Manager jeromecouteurbroadridgecom

Barbara Ferraresi - Product Manager barbaraferraresibroadridgecom

Diana Mackay - Editorial dmmackaywilliamscom

broadridgecom

About BroadridgeAuthor Informaon

Global Market Intelligence (GMI) reflects ourexpertise and understanding of marketsworldwide and of the evolving needs of assetmanagers

To learn more and to schedule a free demo ofGlobal Marketing Intelligence (GMI) visitwwwbroadridgecomGMI

For more information please contactlauracohenbroadridgecom

Database Featured

EUROPEAN FUND MARKET REVIEW 2018 EDITION

Page 223

EUROPEAN FUND MARKET REVIEW 2018 EDITION

2017 was a blockbuster year for European asset managers Buoyed by anunprecedented absence of market volatility accommodative central-bankpolicies and a pent-up demand from savers to get their money back to workfund managers enjoyed net sales volumes on a scale never experienced beforeInvestment funds registered total net inflows of euro729bn a figure that was 80higher than the industryrsquos previous sales record set in 2014 The year beganwith concerns of political risk and inflation but very soon it became clear thatmonetary policy would determine sentiment Investors took the view correctlythat there would be no unpleasant surprises on that front and responded byincreasing their allocations of savings to funds

In many ways the rush to invest took on febrile characteristics In an averageyear net sales flows into long-term funds account for 44 of overall assetgrowth the remainder coming from market performance In 2017 the net salespercentage rose to 71 of asset growth and in the bond arena it completelyoutstripped any market performance contribution This is an early sign of over-heating and a signal not seen since 2005

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TOTAL OF FUND CLOSURES

NET SALES (2017)

1895TOTAL OF MASTER GROUPS

2778TOTAL OF COMPANIES

36557TOTAL OF FUNDS

TOTAL OF FUND LAUNCHES 2378

2593

TOTAL NET ASSETS (DEC 2017)

ASSET GROWTH (2016-2017)

euro9761bn

euro947bn

euro729bn

KEY DATA

FIGURE 1 - CUMULATIVE NET SALES BY YEAR (eurobn)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016 2017

0

200

400

600

In this year of records the net sales of passive funds also entered new territoryeuro163bn was more than double the volume achieved in 2016 and volumes wereequally split between ETFs and traditional trackers However their gains failed tomatch those of active funds The stellar success of the fixed income sectorplayed well for active managers and proved that despite dire warnings of passivepressures there was still a lot of life in the active arena Passive fundsaccounted for just 17 of bond inflows and this pulled the overall passive shareof long-term sales back to just 25 However this headline figure masks thesignificant presence of passives in the net sales of equity funds In this categorypassive funds were the main driver of flows taking a 65 share

With very few exceptions all the larger European markets ended the year inpositive territory Italy and Germany vied for leadership in terms of sales flowsgenerated by local players but with cross-border activity taken into account (seeFig 36) Italy was the outstanding success story of the year Here euro70bn of netsales went to foreign groups alongside euro32bn of inflows registered by domesticgroups In Germany the weight of activity favoured local players but foreigngroups also did particularly well in Spain Here the strategy of local banks todirect their captive clients into third-party funds of funds was pivotal to thesuccess of foreign providers

One exception to the market success stories was Austria which according todomestic data posted redemptions of euro800m In reality Austrian investors weremigrating out of their traditional government bond holdings and moving intohigher yielding products provided mainly by foreign players

Overview

_____________________

Acve funds win out

Market analysis

Appetite for risk was also on the rise Safe-haven government bonds were soldoff in favour of emerging markets and higher yielding sectors Mixed asset fundshad another good year their sales matched by appetite for equities but thesuccess of both was eclipsed by the race into fixed income Both the bond andequity asset classes enjoyed sales volumes that rocketed to record levels Thefixed income category hit the heady heights of more than euro300bn of inflowsEquity funds achieved euro159bn which was their highest point of this millenniumbut failed to match the dotcom exuberance of 1999 Meanwhile the growingmixed asset segment fell slightly short of its 2015 peak even though its appeal toretail investors remained robust Its small step out of the limelight was in part dueto investorsrsquo willingness to take more risk but also linked to reduced fund-launchactivity from the Italian banks that was responsible for the spike of sales in 2015

Page 323

2018 EDITION

International groups are currently having their best year on record Fig 36reveals the most important markets for these groups this year and highlightsItaly as the primary driver with inflows of nearly euro40B going into foreignfunds This figure overwhelms the euro16B of new money taken by localindustry giants Spain follows with ~euro14B of inflows to cross-border groupsagain dominating domestic industry receipts of just euro5B Here funds of fundshave been a crucial distribution conduit and whilst flows look unlikely tomatch the record volumes seen in 2015 the Spanish market remains abuoyant target market

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FIGURE 2 - PASSIVE VS ACTIVE NET SALES IN 2017 (eurobn)

Active ETF Index Tracking

56615661

844844

785785

FIGURE 3 - MARKET SENTIMENT

of funds with negative flows of funds with positive flows

5151

4949

Overview

EUROPEAN FUND MARKET REVIEW

+1075Asset Growth

euro312MAverage fund size

euro729bnNet Sales 2017

The popular narrative of lsquowinner takes allrsquo seemed to hold true in 2017 withthe winning groups taking an even larger share of the net sales total Thetop-five groups took just over one third of the net sales invested in long-termfunds BlackRock registered its fifth consecutive year at the top of the salesleader board but this year the grouprsquos net receipts of euro89bn were nearlydouble its previous best year in 2015 More than 80 of these flows wereattributable to the grouprsquos passive funds However with sales in general soebullient in 2017 many other groups ended the year beating all previoussales records PIMCO ranked second but was the outstanding leader in theactive-management arena Other groups to shine were Amundi benefiting inpart from its acquisition of Italyrsquos Pioneer The acquisition was finalised mid-way through the year and had the effect of promoting Amundi to be Europersquossecond-largest asset-management group In this bumper year 14 groupsgenerated more than euro10bn of new money and 98 boasted over euro1bn

Market success

Group progress

With so much business going into existing funds there was only modestappetite to launch new products The number of fund launches dropped backto its lowest annual total on record (2355) but within this new product setwere some important institutional initiatives that boosted the fund assets ofthe industry as a whole and the UK in particular Specifically a series of fiveACS tracker funds launched by BlackRock made their mark with euro28bn ofnew money These funds were established as vehicles to manage some ofBlackRockrsquos UK institutional mandates and they pushed up the grouprsquosannual sales totals by one third

Products and innovaon

The top-five groups took just over one third ofthe net sales invested in long-term funds

Page 423

2018 EDITION

broadridgecom

FIGURE 4 - EUROPEAN NET SALES IN 2017 (eurobn)

Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017

Bond Equity Mixed Assets Money Market

-33

0

33

66

99

FIGURE 5 - GLOBAL NET SALES IN 2017 (eurobn)

Asia-Pacific Europe International Latin America MEA North America

Bond Equity Mixed Assets Money Market

0

200

400

600

Overview

EUROPEAN FUND MARKET REVIEW

Page 523

2018 EDITION

broadridgecom

Asia-Pacific Europe International Latin America MEA North Amercia

FIGURE 6 - HISTORICAL GLOBAL ASSETS (euroT)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Asia-Pacific Europe International Latin America MEA North America

169169

133133159159

186186 185185207207

226226

271271

302302329329 337337

FIGURE 7 - GLOBAL ASSETS BY INVESTMENT TYPE

Bond Equity Mixed Assets Money Market

Overview

EUROPEAN FUND MARKET REVIEW

Page 623

2018 EDITION

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FIGURE 8 - BEST-SELLING BONDS FUNDS IN 2017 (eurom)

Fund Name Fund Strategy Launch Date Fund Sector Net Sales

PIMCO GIS Income Fund Active 2012-11 Bonds Global Currencies

Deutsche Floating Rate Notes LC Active 1991-07 Bank loanFloating rate

MampG Optimal Income Fund Active 2006-11 Bonds Flexible

Muzinich Enhanced Yield Short-Term Fund Active 2003-11 Bonds EUR Short-Term

Templeton Emerging Markets Bond Fund (Lux) Active 1991-07 Bonds Emerging Markets

AB FCP I Global High Yield Portfolio Active 1997-09 Bonds Global High Yield

42907

6306

5969

4568

4195

3747

Best Sellers

FIGURE 9 - BEST-SELLING MIXED FUNDS IN 2017 (eurom)

Fund Name Fund Strategy Launch Date Fund Sector Net Sales

Allianz Global Investors Fund - Allianz Income and Growth Active 2011-06 Mixed Assets Income

JPMorgan Investment Funds - Global Income Fund Active 2008-12 Mixed Assets Income

PrivatFonds Kontrolliert Active 2010-07 Mixed Assets Conservative

Invesco Perpetual Global Targeted Returns Active 2013-09 Asset Allocation Alternative

First Eagle Amundi Income Builder Fund Active 2014-09 Mixed Assets Income

BlackRock Global Funds - Global Multi-Asset Income Fund Active 2012-06 Mixed Assets Income

5811

5694

4533

4050

4042

3703

FIGURE 10 - BEST-SELLING EQUITY FUNDS IN 2017 (eurom)

Fund Name Fund Strategy Launch Date Fund Sector Net Sales

BlackRock ACS 5050 Global Equity Tracker Passive 2017-06 Equities Global

BlackRock ACS UK Equity Tracker Passive 2017-06 Equities United Kingdom

BlackRock ACS World ex UK Equity Tracker Passive 2017-04 Equities Global

Old Mutual Global Equity Absolute Return Active 2014-05 Equities Alternative

BlackRock ACS 3070 Global Equity Tracker Passive 2017-07 Equities Global

BlackRock ACS 6040 Global Equity Tracker Passive 2017-06 Equities Global

9576

6061

5754

3855

3604

3205

EUROPEAN FUND MARKET REVIEW

EUROPEAN FUND MARKET REVIEW

Page 723

2018 EDITION

broadridgecom

European Sales

FIGURE 11 - EUROPEAN MARKET RANKING BY NET SALES IN 2017 (eurom)

Fund Investment Type Group

Fund Market

Bnd Eq MM MM-Enh Mix Oth

Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales

Sum

Net Sales

International

United Kingdom

Germany

Italy

France

Switzerland

Spain

Sweden

Belgium

Netherlands

Poland

Norway

Russia

Czech Republic

Portugal

Finland

Slovakia

Malta

Bulgaria

Slovenia

Estonia

Turkey

Liechtenstein

Lithuania

Ukraine

Luxembourg

Latvia

Romania

Croatia

Iceland

Greece

Hungary

Denmark

Austria

2667569

165850

57106

87529

82418

101602

-46604

36555

2764

17067

2248

6543

9761

-614

5147

1202

346

449

154

89

1050334

325386

45512

8204

58228

-22036

60250

49555

19815

32270

128

2301

79

2408

-474

-11954

-391

76

273

296

694401

92156

4473

-5199

-111982

6902

-9993

-7477

-8040

6349

13711

7824

-60

122

-3779

5309

-1070

-146

114

-445

110664

7313

34547

-3316

50184

4748

-987

327

7

-11

5107

21

-3

819711

113501

161404

222729

52725

20155

88282

-7206

62465

-11210

2309

611

-42

6776

6257

636

1840

502

194

691

-8841

16452

27373

7008

37908

12758

-15708

2325

-17119

3020

1286

120

-29

-1038

58

4847

561

-7

6

4

-25

-2417

20

151

-20

-62

-582

1669

-819

459

-5574

-21841

-12732

491

960

194

-79

1

-10

213

144

-1495

-565

861

-27252

-3871

-2388

-0

-398

-3494

-2029

-4305

-9402

-2082

-1033

-0

3

471

15

998

-48

3496

-59

-0

-0

-37

374

573

53

-306

1729

38565

5405

571

-0

-12

-113

-48

-124

6990

3510

3211

5333838

720657

330414

316955

169482

124130

75240

73751

60212

47495

19690

17399

9710

7643

7209

5147

1308

875

738

635

466

221

155

59

1

-57

-71

-503

-1156

-4290

-4371

-5380

-8102

-9068

Sum 3155412 1589852 658038 210040 1592125 84967 7290434

EUROPEAN FUND MARKET REVIEW

EUROPEAN FUND MARKET REVIEW

Page 823

2018 EDITION

broadridgecom

All Sector Ranking

FIGURE 12 - TOP SECTORS BY SALES IN 2017 (eurom)

Year

Fund Sector

2016 2017

Net Sales Net Sales Rank Net Sales Net Sales Rank

Bonds Global Currencies

Equities Global

Bonds Emerging Markets

Money Market GBP

Mixed Assets Income

Mixed Assets Conservative

Asset Allocation

Asset Allocation Alternative

Money Market USD

Bonds Flexible

Bank loanFloating rate

Fund of Funds Balanced

Short Term Dynamic

Mixed Assets Balanced

Equities Emerging Markets

Bonds Alternative

Bonds Emerging Markets - Local Currency

Bonds Global Corporates

Bonds EUR Short-Term

Fund of Funds Asset Allocation

Bonds USD Corp Inv Grade

Equities Euroland

15746

10080

12482

45218

2354

10823

16210

39666

24362

-9325

4484

7728

7409

-1269

15379

3350

6851

14379

10322

6785

6

14

9

1

36

11

5

2

4

224

27

17

18

202

7

32

22

8

13

23

80285

55066

40651

34065

33433

30457

30326

29854

28321

26253

25720

24692

21093

20077

19158

18805

18218

18191

17284

16980

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

3905

-6704

30

222

15487

15039

21

22

FIGURE 13 - TOP AND BOTTOM FIVE SECTORS BY SALES IN 2017 (eurom)

Bnd

Gl C

urr

Eq G

lobal

Bnd

Em M

kt

MM

GBP

Mix

Inco

me

Bnd

Eur C

orp

HY

Deriv

ative

s

FF H

dge

Eq U

K In

c

Bnd

Eur

0

50

EUROPEAN FUND MARKET REVIEW

Page 923

FIG 15 (REST) TOP MG BY SALES IN 17 - INC ETFs

Values

TOP 25

REST

TOTAL

433537

208698

642236

FIG 14 (REST) TOP MG BY SALES IN 17 (eurom) - EX ETFs

Values

TOP 25

REST

TOTAL

364583

192936

557519

2018 EDITION

broadridgecom

Note Excludes money market funds and ETFs Note Excludes money market funds

Pan-European Master Groups Sales

FIG 14 - TOP MASTER GROUPS BY SALES IN 2017 (eurom) - EX ETFs

Master Groups NAT Funds Net Sales

PIMCO US

BlackRock US

Intesa SP IT

GAM CH

Amundi FR

Allianz GI DE

PrudentialMampG GB

Invesco US

AXA FR

Vanguard US

VRUnion DE

Cr Suisse CH

Natixis FR

Goldman Sachs US

Royal London GB

UBS CH

Schroders GB

Baillie Gifford GB

MMCMercer US

Aviva GB

Old Mutual ZA

JPMorgan AM US

Morgan Stanley US

Jupiter GB

Pictet CH

64

260

701

265

907

372

134

156

356

52

418

347

274

103

51

469

229

48

52

159

58994

58373

22997

16972

16722

15253

14380

12657

11586

11080

10275

10250

9597

9354

8960

8838

8447

8426

8226

8019

114

202

112

54

139

7613

7583

7377

6477

6128

FIG 15 - TOP MASTER GROUPS BY SALES IN 2017 (eurom) - INC ETFs

Master Groups NAT Funds Net Sales

BlackRock US

PIMCO US

Amundi FR

Intesa SP IT

UBS CH

GAM CH

Deutsche AM DE

Vanguard US

Allianz GI DE

PrudentialMampG GB

Invesco US

AXA FR

Cr Suisse CH

VRUnion DE

Natixis FR

Goldman Sachs US

Soc GenLyxor FR

Royal London GB

Schroders GB

Baillie Gifford GB

MMCMercer US

Aviva GB

Old Mutual ZA

JPMorgan AM US

Morgan Stanley US

565

65

1010

701

585

269

633

71

372

134

245

356

348

419

285

103

358

51

229

48

88817

59019

26430

22997

18772

16960

16839

15330

15253

14380

13424

11586

10336

10293

9812

9354

9241

8960

8447

8426

52

159

114

202

119

8226

8019

7613

7583

7421

EUROPEAN FUND MARKET REVIEW

Page 1023

Values

Top 25

REST

TOTAL

152143

490092

642236

2018 EDITION

broadridgecom

Note Excludes money market funds

Pan-European Fund Leaders Sales

FIGURE 16 - TOP 25 FUNDS BY NET SALES IN 2017 (eurom)

Master Groups Fund Name Domicile Strategy Type Launch Date Net Sales

PIMCO PIMCO GIS Income Fund IE Active Bnd 2012-11

BlackRock BlackRock ACS 5050 Global Equity Tracker GB Passive Eq 2017-06

Deutsche AM Deutsche Floating Rate Notes LC LU Active Bnd 1991-07

BlackRock BlackRock ACS UK Equity Tracker GB Passive Eq 2017-06

PrudentialMampG MampG Optimal Income Fund GB Active Bnd 2006-11

Allianz GI Allianz Global Investors Fund - Allianz Income and Growth LU Active Mix 2011-06

BlackRock BlackRock ACS World ex UK Equity Tracker GB Passive Eq 2017-04

JPMorgan AM JPMorgan Investment Funds - Global Income Fund LU Active Mix 2008-12

Muzinich Muzinich Enhanced Yield Short-Term Fund IE Active Bnd 2003-11

VRUnion PrivatFonds Kontrolliert DE Active Mix 2010-07

Fr Templeton Templeton Emerging Markets Bond Fund (Lux) LU Active Bnd 1991-07

Invesco Invesco Perpetual Global Targeted Returns GB Active Mix 2013-09

Amundi First Eagle Amundi Income Builder Fund LU Active Mix 2014-09

Old Mutual Old Mutual Global Equity Absolute Return IE Active Eq 2014-05

AXA AB FCP I Global High Yield Portfolio LU Active Bnd 1997-09

BlackRock BlackRock Global Funds - Global Multi-Asset Income Fund LU Active Mix 2012-06

Invesco Invesco Pan European High Income Fund LU Active Mix 2006-03

PIMCO PIMCO GIS Global Investment Grade Credit IE Active Bnd 2003-07

BlackRock BlackRock ACS 3070 Global Equity Tracker GB Passive Eq 2017-07

Jupiter The Jupiter Global Fund - Jupiter Dynamic Bond LU Active Bnd 2012-05

PrudentialMampG MampG Dynamic Allocation GB Active Mix 2009-12

GAM GAM Star Credit Opportunities (EUR) IE Active Bnd 2011-07

Allianz GI Allianz Global Investors Fund - Allianz Floating Rate Notes Plus LU Active Bnd 2014-09

GAM GAM Multibond - Local Emerging Bond LU Active Bnd 2000-05

Amundi Amundi ETF Floating Rate USD Corporate UCITS ETF FR Passive Bnd 2015-04

42907

9576

6306

6061

5969

5811

5754

5694

4568

4533

4195

4050

4042

3855

3747

3703

3677

3649

3604

3553

3553

3397

3365

3343

3230

EUROPEAN FUND MARKET REVIEW

EUROPEAN FUND MARKET REVIEW

Page 1123

2018 EDITION

broadridgecom

Product ThemesExchange Traded Funds

FIGURE 17 - TOP 10 FUNDS BY SALES IN 2017 (eurom)

Master Groups Fund Name Launch Date Net Sales

Amundi Amundi ETF Floating Rate USD Corporate UCITS ETF 2015-04

UBS UBS ETFs plc - MSCI ACWI SF UCITS ETF 2015-08

BlackRock iShares Core MSCI World UCITS ETF 2009-09

iShares J P Morgan Emerging Markets Local Government Bond UCITS ETF 2011-06

iShares Core MSCI Emerging Markets IMI UCITS ETF 2014-05

Amundi Amundi ETF MSCI Emerging Markets UCITS ETF 2010-12

Deutsche Boumlrse Xetra-Gold 2007-12

BlackRock iShares Core SampP 500 UCITS ETF (USD) 2010-05

Soc GenLyxor Multi Units Luxembourg - Lyxor SampP 500 UCITS ETF 2010-03

Deutsche AM db x-trackers MSCI JAPAN INDEX UCITS ETF (DR) 2007-01

3230

3129

2916

2573

2468

2181

2086

1933

1805

1800

Sum 24121

FIGURE 18 - TOP 10 MASTER GROUPS BY SALES IN 2017 (eurom)

Master Groups NAT Funds Assets Net Sales

BlackRock US

Deutsche AM DE

UBS CH

Amundi FR

Soc GenLyxor FR

State Street US

Vanguard US

Deutsche Boumlrse DE

ETF Securities GB

Invesco US

307

190

116

104

233

99

19

1

15

90

297820

67695

41344

36397

62249

22493

29954

6084

2427

15678

30385

10731

9933

9581

8332

4322

4250

2086

1019

759

Sum 1174 582142 81399

EUROPEAN FUND MARKET REVIEW

Page 1223

2018 EDITION

broadridgecom

Product ThemesIndex Tracking Funds

FIGURE 19 - TOP 10 FUNDS BY SALES IN 2017 (eurom)

Master Groups Fund Name Launch Date Net Sales

BlackRock BlackRock ACS 5050 Global Equity Tracker 2017-06

BlackRock ACS UK Equity Tracker 2017-06

BlackRock ACS World ex UK Equity Tracker 2017-04

BlackRock ACS 3070 Global Equity Tracker 2017-07

BlackRock ACS 6040 Global Equity Tracker 2017-06

Vanguard Vanguard Investment Series Plc - Vanguard Global Bond Index Fund 2008-03

BlackRock iShares Corporate Bond Index 2010-06

iShares Over 15 Years Gilts Index 2017-03

Standard Aberdeen Aberdeen Global Corporate Bond Tracker 2017-08

BlackRock iShares Index Linked Gilt Index 2012-06

9576

6061

5754

3604

3205

2610

2214

1967

1710

1610

Sum 38310

FIGURE 20 - TOP 10 MASTER GROUPS BY SALES IN 2017 (eurom)

Master Groups NAT Funds Assets Net Sales

BlackRock US

Vanguard US

Amundi FR

Legal amp General GB

UBS CH

Northern Trust US

BNY Mellon US

Swisscanto CH

Standard Aberdeen GB

Cr Suisse CH

72

39

32

34

66

33

11

68

3

78

134527

95729

9792

31722

69711

19513

3776

30072

3754

62373

41043

11451

4031

3700

3384

3258

3255

2164

1643

1490

Sum 436 460967 75419

EUROPEAN FUND MARKET REVIEW

Page 1323

2018 EDITION

Note Excludes money market funds

broadridgecom

Product ThemesAcve vs Passive

FIGURE 22 - MARKET SHARE OF PASSIVE FUNDS BY ASSETS IN 2017

Dec 2017

Index Tracking ETF Active

88

77

8484

FIGURE 21 - MARKET SHARE OF PASSIVE FUNDS BY ASSETS IN 2003

Index Tracking ETF Active

3311

9696

EUROPEAN FUND MARKET REVIEW

FIGURE 23 - HISTORICAL NET SALES (eurobn)

2014 2015 2016 2017

Active ETF Index Tracking

310310

4040 4343

211211

64643737 4242 3838 3333

479479

8585 7878

Page 1423

2018 EDITION

broadridgecom

Product ThemesBonds Emerging Markets

FIGURE 24 - TOP 10 FUNDS BY SALES IN 2017 (eurom)

Master Groups Fund Name Launch Date Net Sales

Fr Templeton Templeton Emerging Markets Bond Fund (Lux) 1991-07

GAM GAM Multibond - Local Emerging Bond 2000-05

BlackRock BlackRock Global Funds - Emerging Markets Local Currency Bond Fund 2007-02

Intesa SP Epsilon Fund - Emerging Bond Total Return 2008-04

BlackRock iShares J P Morgan Emerging Markets Local Government Bond UCITS ETF 2011-06

Neuberger Berman Neuberger Berman Short Duration Emerging Market Debt Fund 2013-10

Goldman Sachs GS Emerging Markets Debt Portfolio 2000-05

Amundi Amundi Funds Bond Global Emerging Blended 2015-07

Ashmore Ashmore Sicav Emerging Markets Short Duration 2014-06

Amundi Pioneer Funds - Emerging Markets Bond 2000-06

4195

3343

2811

2639

2573

2013

1825

1762

1693

1498

Sum 24353

FIGURE 25 - TOP 10 MASTER GROUPS BY SALES IN 2017 (eurom)

Master Groups NAT Funds Assets Net Sales

BlackRock US

Amundi FR

Intesa SP IT

Fr Templeton US

Neuberger Berman US

Ashmore GB

GAM CH

Goldman Sachs US

NYL Candriam US

JPMorgan AM US

11

12

13

6

6

18

7

4

5

7

25334

12611

13588

8994

7208

12025

9515

10583

3788

8336

9652

5137

4945

4189

3991

3783

3658

2905

1586

1584

Sum 89 111983 41430

EUROPEAN FUND MARKET REVIEW

EUROPEAN FUND MARKET REVIEW

Page 1523

2018 EDITION

broadridgecom

Product Development

FIGURE 26 - TOP 10 FUNDS BY SALES IN 2017 (eurom)

Master Groups Fund Name Launch Date Net Sales

Allianz GI Allianz Global Investors Fund - Allianz Euroland Equity Growth 2006-10

BlackRock iShares Core EURO STOXX 50 UCITS ETF 2010-01

Schroders Schroder ISF-EURO Equity 1998-09

Deutsche AM db x-trackers MSCI EMU INDEX UCITS ETF (DR) 2012-11

UBS UBS ETF - MSCI EMU UCITS ETF 2002-09

Invesco Invesco Euro Equity Fund 2015-10

BlackRock iShares EURO STOXX 50 UCITS ETF (DE) 2000-12

Amundi Amundi ETF EURO STOXX 50 UCITS ETF 2008-09

La Caixa CaixaBank Bolsa Gestion Euro FI 1995-04

AXA AB FCP I Eurozone Equity Portfolio 1999-02

1673

1519

1427

1171

993

920

688

615

543

529

Sum 10078

FIGURE 27 - TOP 10 MASTER GROUPS BY SALES 2017 (eurom)

Master Groups NAT Funds Assets Net Sales

Amundi FR

BlackRock US

Deutsche AM DE

Allianz GI DE

Schroders GB

UBS CH

Invesco US

KutxaBank ES

NYL Candriam US

Sycomore FR

35

16

9

10

1

20

4

3

8

5

14031

26645

9638

5873

5523

9126

2427

1536

1033

1704

2635

2163

1811

1746

1427

1203

961

615

581

580

Sum 111 77535 13723

EUROPEAN FUND MARKET REVIEW

Equies Euroland

Page 1623

2018 EDITION

broadridgecom

Product Development

FIGURE 28 - FUND LAUNCHES amp CLOSURES

Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017

Fund Launches Fund Closures Fund Mergers

4545

148148

208208

8181

143143

213213

8484

135135

235235

6262

132132

160160

6363

136136

211211

5454

179179

272272

5353

197197

197197

3636

8787

111111

102102

126126

181181

4949

161161

196196

164164

147147

227227

7979

130130

167167

FIGURE 29 - TOP SELLING NEW FUND LAUNCHES IN 2017 (eurom)

Fund Name Fund Domicile Launch Date Net Sales

BlackRock ACS 5050 Global Equity Tracker United Kingdom 2017-06

BlackRock ACS UK Equity Tracker United Kingdom 2017-06

BlackRock ACS World ex UK Equity Tracker United Kingdom 2017-04

AXA Money Market France 2017-06

BlackRock ACS 3070 Global Equity Tracker United Kingdom 2017-07

BlackRock ACS 6040 Global Equity Tracker United Kingdom 2017-06

Royal London UK Real Estate United Kingdom 2017-10

Eurizon Top Selection Dicembre 2022 Italy 2017-09

Baillie Gifford Long Term Global Growth Investment United Kingdom 2017-04

UBS (Lux) Bond Sicav - USD Investment Grade Corporates (USD) Luxembourg 2017-01

9576

6061

5754

4010

3604

3205

3177

2664

2477

2466

EUROPEAN FUND MARKET REVIEW

Page 1723

2018 EDITION

broadridgecom

Product Development

FIGURE 30 - FUND LAUNCHES BY GROUP IN 2017 (eurom)

Master Group Funds Net Sales

BlackRock

Intesa SP

Amundi

AXA

UBS

BP Cooperativa

Cr Suisse

BNY Mellon

Royal London

KBC

43

117

90

33

37

14

33

43

5

56

35331

25107

10413

9873

8559

7765

7559

6161

5111

4743

Sum 471 120621

FIGURE 33 - NUMBER OF FUND LAUNCHES BY STRATEGY in 2017

Active ETF Index Tracking

21802180

117117

8181

FIGURE 32 - FUND LAUNCHES BY REGION IN 2017 (eurom)

Fund Region Funds Net Sales

Europe

International

1402

976

164293

70492

Sum 2378 234785

EUROPEAN FUND MARKET REVIEW

FIGURE 31 - NUMBER OF FUND LAUNCHES BY MAIN ASSET CLASS

2014 2015 2016 2017

Bond Equity Mixed Assets

611611

805805

557557596596

948948

681681

541541

737737

592592518518

709709

588588

Page 1823

FIG 35 (REST) TOP INT MAST GR BY ENS 17(eurom) - INCETF

Values

TOP 25

REST

TOTAL

349015

103863

452877

FIG 34 (REST) TOP MASTER GROUPS BY SALES IN H1 2017 (eurom) - EX ETFs

Values

TOP 25

REST

TOTAL

277554

93866

371420

broadridgecom

Note exclude money market funds and ETFs Note exclude money market funds

2018 EDITION

Cross-Border ProgressGroup Winners

FIG 34 - TOP CROSS-BORDER GROUPS BY SALES IN 2017 (eurom) - Ex ETFs

Master Groups NAT Funds Net Sales

PIMCO US

BlackRock US

GAM CH

PrudentialMampG GB

Invesco US

Amundi FR

AXA FR

Allianz GI DE

Goldman Sachs US

JPMorgan AM US

Natixis FR

Cr Suisse CH

MMCMercer US

Schroders GB

Deutsche AM DE

Vanguard US

Morgan Stanley US

Pictet CH

UBS CH

Old Mutual ZA

AQR Capital US

Aviva GB

Neuberger Berman US

Jupiter GB

Muzinich US

64

177

137

91

103

239

206

89

103

159

110

123

52

144

167

39

104

104

244

40

58994

18793

17363

16895

12786

12417

10966

10387

9354

8554

8507

8454

8226

8092

8067

7881

7322

6768

6435

5880

17

31

45

22

20

5818

5494

5306

4402

4393

FIG 35 - TOP CROSS-BORDER GROUPS BY SALES IN 17 (eurom) - INC ETFs

Master Groups NAT Funds Net Sales

PIMCO US

BlackRock US

Amundi FR

Deutsche AM DE

GAM CH

PrudentialMampG GB

UBS CH

Invesco US

Vanguard US

AXA FR

Allianz GI DE

Soc GenLyxor FR

Goldman Sachs US

Natixis FR

JPMorgan AM US

Cr Suisse CH

MMCMercer US

Schroders GB

Morgan Stanley US

Pictet CH

Old Mutual ZA

AQR Capital US

Aviva GB

Neuberger Berman US

State Street US

65

469

342

352

137

91

337

192

58

206

89

287

103

121

159

123

52

144

111

104

59019

49733

22125

18791

17363

16895

15547

13553

12131

10966

10387

9652

9354

8722

8554

8454

8226

8092

7366

6768

40

17

31

45

157

5880

5818

5494

5306

4819

EUROPEAN FUND MARKET REVIEW

Page 1923

broadridgecom

- Excludes money market funds amp ETFs

- Cross-border activity is actual sales asmeasured by the Broadridge SalesWatchConfidential Service

- The 66 members are estimated toaccount for 75-80 of the total cross-border sales activity

Cross-Border ProgressCross-Border Share of Sales in Europe

FIGURE 36 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2017 - ALL FUNDS (eurobn)

0 20 40 60 80

ItalySpain

SwitzerlandGermany

United KingdomFrance

BelgiumNetherlands

SwedenAustria

FIGURE 37 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2017 - EQUITY ONLY (eurobn)

0 3 5 8

ItalySpain

United KingdomSwitzerland

FranceBelgiumAustria

SwedenGermany

Netherlands

FIGURE 38 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2017 - BOND ONLY (eurobn)

0 10 20 30 40

ItalySwitzerland

SpainGermany

United KingdomFrance

NetherlandsSwedenAustria

Belgium

Note to data

Cross-Border Progress

2018 EDITIONEUROPEAN FUND MARKET REVIEW

Page 2023

FIGURE 39 - DOM GERMANY in 2017

Domestic Net Sales

Mixed Assets Conservative

Asset Allocation Alternative

Bank loanFloating rate

Equities Global Income

Mixed Assets Income

6254

4036

3378

2247

2035

FIGURE 39 - SW SECTOR GERMANY in 2017

Cross-Border Real Sales

Bank loanFloating rate

Asset Allocation Alternative

Mixed Assets Income

Bonds Global Currencies

Bonds Flexible

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 39 - SW SECTOR ITALY 2017

Cross-Border Real Sales

Mixed Assets Income

Bonds Global Currencies

Asset Allocation

Bonds Emerging Markets

Bonds Flexible

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 39 - DOM SWITZERLAND in 2017

Domestic Net Sales

Bonds Global Currencies

Bonds Global Corporates

Equities North America

Equities Real Estate

Bonds Emerging Markets

3828

2462

1219

1143

885

FIGURE 39 - SW SECTOR UK 2017

Cross-Border Real Sales

Bonds Global Currencies

Bonds Global Corporates

Bonds Emerging Markets - Local Currency

Equities Europe Ex UK

Bonds Emerging Markets

Confidential

Confidential

Confidential

Confidential

Confidential

Cross-Border Real Sales

Bonds Global Currencies

Equities Euroland

Asset Allocation Alternative

Bonds Emerging Markets

Asset Allocation

Confidential

Confidential

Confidential

Confidential

Confidential

Domestic Net Sales

Real Estate

Bonds EUR Short-Term

Asset Allocation

Equities France MidSmall Caps

Equities Euroland MidSmall Caps

3962

3576

2992

1611

1523

FIGURE 39 - SW SECTOR SWITZWELAND 2017

Cross-Border Real Sales

Bonds Global Currencies

Bonds USD Corp Inv Grade

Bonds Emerging Markets - Local Currency

Bonds Flexible

Bank loanFloating rate

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 39 - DOM UNITED KINGDOM in 2017

Domestic Net Sales

Equities Global

Bonds Target Maturity

Equities Europe Ex UK

Asset Allocation Alternative

Asset Allocation

27349

4700

4359

3002

2445

FIGURE 36 - DOM ITALY

Domestic Net Sales

Bonds Global Currencies

Mixed Assets Target Maturity

Mixed Assets Conservative

Bonds Emerging Markets

Mixed Assets Balanced

8267

6408

3639

2541

2068

broadridgecom

FRANCE

FIGURE 39 - TOP 5 DOMESTIC AND CROSS-BORDERS SECTORS IN THE MAJOR MARKETS IN 2017 (eurom)

GERMANY

ITALY

SWITZERLAND

UNITED KINGDOM

Real Sales dataavailable to SalesWatchmembers only

Domesc vs Cross-Border Sectors

Note to data

Cross-Border Progress

Page 2123

broadridgecom

The following report is based on the unique fund analytics delivered throughBroadridge Global Market Intelligence (GMI) our leading global fundanalytics database The charts and tables in this report reflect only the tip ofthe iceberg in terms of the depth and breadth available from Broadridge GMIThe report offers a high-level overview of European fund flow activity in 2017

Global Market Intelligence (GMI) helps you make more strategic decisionsmore effectively allocate your companyrsquos resources and most importantly bemore responsive to your customersrsquo needs all through the combining thepower of the FundFile and SalesWatch datasets

Broadridge FundFile enables deep fund flows analysis of all keygeographical markets covering Asia Pacific Latin America the Middle Eastand Africa and North America and delivers a truly global fund flows solutionBy gradually building the international reach of its global sales data andmaintaining its high quality and ease of use over the past ten years FundFilehas become the unparalleled source of data and analysis with informationon more than 100000 funds

The cross-border dimension of the European funds industryndashtheldquointernationalrdquo fund marketndashcan truly be assessed only with BroadridgeSalesWatch a unique cooperative and confidential benchmarking servicethat allows leading fund groups to track their cross-border sales and assetsagainst their competitorsrsquo by country distribution channel institutional versusretail activity and both gross and net sales This service now counts 66 ofthe leading asset managers among its members (Some sample data takenfrom the tool can be seen on pages 20 and 21 of the current report)

1 All data is at December 2017 unless otherwise stated

2 lsquoInternationalrsquo fund market Broadridge defines an International fund as afund that sources less than 80 of its assets from any single country Somefund groups have domestic and international funds

3 lsquoDomesticrsquo fund market If a fund sources more than 80 of its assets from asingle country then the fund is allocated to that market regardless of itsdomicile

4 Funds of funds have been excluded from all charts and tables (to avoiddouble counting) unless otherwise stated Therefore a market total is the sumof all the investment categories excluding the three funds of funds categories(in-house ex-house and hedge)

5 The investment category lsquootherrsquo includes a variety of different productcategories For most markets especially Belgium Spain and France the figurecomprises guaranteed funds but there are also derivatives and other specialityfunds in the lsquootherrsquo category

6 Property funds are open-ended property funds only

7 Master group Analysis that aggregates the European mutual fund assetsunder the umbrella of their parent company name

8 ETFs are included in Broadridgersquos database on mutual funds but thisexcludes exchange-traded commodity products that are not mutual funds

9 References to foreign activity relate to actual sales as measured byBroadridgersquos SalesWatch confidential service The 65 SalesWatch membersare estimated to account for 75-80 of total cross-border sales activity

No part of this document may be distributed reproduced or posted without the express written permission of Broadridge Financial Solutions Inc copy2018 Broadridge FinancialSolutions Inc Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions Inc

Footnotes About the Report

Page 2223

copy Copyright 2018 Broadridge Financial Solutions Inc

Page 2323

copy Copyright 2018 Broadridge Financial Solutions Inc

Page 2323