european fund market mid-year review 2013

EUROPEAN FUND MARKET MID-YEAR REVIEW 2013

REUTERS/SAM MIRCOVICH

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© Thomson Reuters 2013. All Rights Reserved. This report is for informational purposes only, and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. No guarantee is made that the information in this report is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. For immediate assistance, feel free to contact Lipper at 44.20.7542.2710 or via email at [email protected]. For more information about Lipper, please visit our website at www.lipperfmi.com or www.lipperweb.com.

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KEY DATA:

TOTAL # OF MASTER GROUPS

1,903

TOTAL # OF COMPANIES2,803

TOTAL # OF FUNDS34,861

FUND LAUNCHES1,218

FUND CLOSURES1,662

TOTAL NET ASSETS (JUNE 2013) €6,050BN

ASSET GROWTH (YTD 2011) €120BN

ESTIMATED NET SALES (YTD 2013)€109.6BN

ESTIMATED NET SALES (Q1 2013)

€109.3BN

ESTIMATED NET SALES (Q2 2013)€0.3BN

EUROPEAN FUND MARKETMID-YEAR REVIEW 2013

JAN-JUN 2013

The following report is based on the unique fund flows information delivered through Lipper FundFile, our leading global fund flows database. The charts and tables in this report reflect only the tip of the iceberg in terms of the depth and breadth available from Lipper within FundFile. The report offers a high-level overview of European fund flows activity over the first half of 2013.

Lipper FundFile allows deep fund flows analysis of all key geographical markets covering: Asia Pacific, Latin America, the Middle East and Africa, and the U.S., and delivers a truly global fund flows solution.

By gradually building the international reach of global sales data, the high quality and ease of use that have made FundFile the unparalleled source of data and analysis–compiling information on more than 100,000 funds over the past ten years–have been maintained.

The cross-border dimension of the European funds industry–the “international” fund market–can only truly be assessed with Lipper SalesWatch, a unique cooperative, confidential benchmarking service that allows leading fund groups to track their cross-border sales and assets against their competitors’ by country, distribution channel, institutional versus retail activity, and both gross and net sales. This service now counts 48 of the leading asset managers among its members. Some sample data taken from the tool can be seen on pages 18 and 19 of the current report.

European mutual funds attracted €109.6bn inflows for the first half of 2013 (compared to 83.2bn over the same period in 2012), with the majority of new business sourced over Q1 2013 (€109.3bn). The tables turned dramatically in June, when investors fled mutual funds bringing the overall pickings to just €300m net for Q2. It is worth noting that the bulk of the outflows that month were due to redemptions from fixed income vehicles (-€28bn), following Federal Reserve Chairman Ben Bernanke’s suggestion that quantitative easing in the U.S. might come to an end next year.

OVERVIEWThe asset class had significantly gained in popularity in 2012, consequently collecting a colossal €228.4bn over the year. When looking at long-term products (i.e., at funds that not do not invest in money market funds), the outlook was a lot more positive as year-to-date net sales reached €161.4bn.

The beginning of 2013 led to believe in an equity revival, with average monthly flows of €12.3bn net over the first quarter. Investor appetite appeared to be increasingly focused to what are deemed ‘riskier strategies’. This was short lived as sales rapidly declined and slid back into negative territory during Q2 (-€7.8bn). Q1’s boost in activity was no doubt reflected in the 158 new equity fund launches over the course of the second quarter. Nevertheless, during the first half of 2013, new launch activity was dominated by bond funds, reflecting the demand of investors for new products within this sector, mainly driven by the chase for yield.

Turning to group success, there was a notable shift this year. PIMCO, the world’s largest bond house and the top selling group for the first half of 2012, receded down the league table to fourth position, collecting €11.3bn. Asset management giants BlackRock and JP Morgan led the way, with €13.6bn and €13.3bn inflows respectively. The success of the Templeton Global Total Return Fund (€7.9bn net) propelled the U.S. group Franklin Templeton into third place with net inflows of €11.8bn.

This year also marked the rise of product types offering a somewhat broader investment strategy with the likes of Asset Allocation (€31.9bn), Bonds Global Currencies (€24.2bn), Bonds Flexible (€16.8bn) and Equities Global (€11.8bn) largely dominating top sector sales.

New to this study is an analysis of the increasing weight of passive strategies within the mutual fund space over the past decade (page 12).

We hope you enjoy the report.

EUROPEAN FUND MARKET REVIEW 2013 EDITION

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FIGURE 1 EUROPEAN NET SALES YTD 2013 (€M)

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

Year 2012 YTD 2013 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013

Bond Equity Mixed Assets Monet Market Other

OVERVIEW

FIGURE 2 GLOBAL NET SALES YTD 2013 (€M)

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

USA Europe Asia Pacific Latin America MEA

Bond Equity Mixed Assets Money Market Other


5

BEST SELLERSFIGURE 3

FUND EQUITY CLASSIFICATION NET SALES (€M)

M&G Global Dividend Global 2,121.3

BlackRock Collective Investment Funds - UK Equity Tracker United Kingdom 1,767.7

Polar Capital Funds Plc - Japan Fund Japan 1,371.0

AllianceBernstein SICAV - Select US Equity Portfolio North America 1,356.4

Aberdeen Global Asian Smaller Companies Fund Pacific ex Japan Mid/Small Caps 1,215.3

BEST-SELLING EQUITY FUNDS DOMICILED IN EUROPE YTD 2013

FIGURE 4

FUND BOND CLASSIFICATION NET SALES (€M)

Templeton Global Total Return Fund Global 7,935.0

M&G Optimal Income Fund Flexible 4,307.9

PIMCO GIS Unconstrained Bond Fund Flexible 3,861.4

PIMCO GIS Income Fund Global 3,140.8

PIMCO GIS Diversified Income Fund Global 1,984.4

BEST-SELLING BOND FUNDS DOMICILED IN EUROPE YTD 2013

FIGURE 5

FUND MIXED CLASSIFICATION NET SALES (€M)

JPMorgan Funds - JF Asia Pacific Income Fund Mixed Balanced 2,914.8

Standard Life Global Absolute Return Strategies Asset Allocation 2,812.5

JPMorgan Investment Funds - Global Income Mixed Balanced 2,385.7

Schroder ISF-Global Multi-Asset Income Asset Allocation 2,036.3

Standard Life Global Absolute Return Strategies Fund Asset Allocation 1,924.2

BEST-SELLING MIXED FUNDS DOMICILED IN EUROPE YTD 2013


6

FIGURE 6 EUROPEAN MARKET RANKING BY ESTIMATED NET SALES YTD 2013 (€M)

RANK FUND MARKET BOND COMMODITY EQUITY MIXED MM MM ENH PROPERTY OTHER TOTAL

1 International 65,586.5 -1,124.5 34,408.0 23,176.1 -27,129.1 -534.2 61.1 5,741.2 100,185.1 2 Italy -180.7 -17.0 -1,540.3 8,720.3 592.7 296.8 - -489.2 7,382.5 3 Spain 5,160.2 -1.7 776.8 177.0 1,973.1 186.8 -28.7 -913.7 7,329.7 4 Germany 4,589.3 -404.1 -2,832.8 5,463.6 -1,260.3 -171.6 1,402.4 333.7 7,120.1 5 Sweden 1,308.5 -24.6 2,025.7 784.8 1,279.7 - - 658.9 6,033.0 6 United Kingdom -1,766.8 -0.5 -1,011.8 6,507.0 -956.2 3.4 312.4 -688.0 2,399.3 7 Norway 2,314.7 -9.8 192.8 96.4 -826.7 - - -50.0 1,717.4 8 Portugal 144.6 - -28.5 -164.5 1,820.7 - -48.8 -7.9 1,715.6 9 Hungary 809.8 -0.4 11.6 58.7 531.9 2.5 84.4 178.7 1,677.2 10 Poland 129.4 0.0 206.3 117.8 1,167.4 -0.7 - -28.5 1,591.7 11 Belgium 23.0 94.2 -455.2 2,074.4 904.7 -5.2 - -1,377.7 1,258.3 12 Turkey 463.3 -53.9 122.8 509.8 -178.0 - 0.0 -1.5 862.4 13 Austria 210.0 5.9 221.2 6.3 15.3 1.7 400.1 -123.7 736.8 14 Czech Republic 80.8 -0.4 104.5 84.9 -58.8 -1.8 70.2 154.5 433.9 15 Finland 758.7 -4.7 307.7 -1,433.5 879.9 -13.8 2.4 -134.7 361.8 16 Croatia 7.5 - -13.1 -8.0 290.0 - - - 276.3 17 Romania 155.9 - -5.8 6.3 103.1 1.0 - 4.6 265.1 18 Russia 433.8 -2.8 -153.5 -15.2 -2.0 - - 0.5 260.8 19 Slovakia 27.4 - 5.6 39.9 28.0 -0.6 69.7 -8.0 162.0 20 Bulgaria 12.2 -0.1 6.5 4.9 19.0 - - 0.0 42.5 21 Greece 179.0 -0.9 -19.9 -5.4 -126.3 22.3 - -10.9 37.9 22 Estonia -3.7 - 39.5 - - - - - 35.8 23 Latvia 20.6 - -0.6 2.4 -0.4 - - - 22.0 24 Malta 24.2 - 1.3 -10.5 -3.2 0.0 - 0.9 12.7 25 Lithuania 0.8 - -0.9 0.2 - 1.0 - - 1.2 26 Ukraine -0.3 - -0.2 -1.5 0.6 - - - -1.4 27 Liechtenstein 4.7 -2.2 7.6 -13.7 - -0.4 - 0.0 -3.9 28 Slovenia 1.2 - -23.0 -11.9 -2.1 - - 0.0 -35.8 29 Luxembourg -120.0 - 162.2 -41.1 -88.4 - - 9.6 -77.7 30 Switzerland 4,642.7 -3,356.1 -2,074.4 1,269.0 -2,070.1 86.7 161.0 710.1 -631.1 31 Denmark -332.1 - -687.7 86.3 -114.1 - - 65.6 -982.0 32 Netherlands -58.2 -26.6 -1,148.5 -219.5 -9.4 - - -28.2 -1,490.5 33 France -3,679.4 -191.7 442.8 414.5 -28,547.5 3,268.0 - -820.1 -29,113.3

TOTAL EUROPE 80,947.5 -5,122.1 29,046.7 47,675.8 -51,766.6 3,141.9 2,486.1 3,176.2 109,585.5

EUROPEAN SALES


7

FIGURE 7 TOP 25 SECTORS IN EUROPE (€M)

FIGURE 8 TOP AND BOTTOM FIVE SECTORS BY SALES YTD 2013 (€M)

ALL SECTOR RANKING

-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

Asset Alloc Bnd Gl Curr Bnd Flex Eq Global Mix Bal FF Hdge Eq UK Bnd Eur CIG MM USD MM Euro

RANK FUND SECTOR ENS YTD 2013

1 Asset Allocation 31,913.7 2 Bonds Global Currencies 24,223.6 3 Bonds Flexible 16,801.8 4 Equities Global 11,874.5 5 Mixed Assets Balanced 10,774.6 6 Equities North America 9,251.4 7 Bonds Emerging Markets - Local Currency 8,633.8 8 Equities Emerging Markets 7,385.4 9 Equities Japan 7,257.2 10 Bonds Speciality 6,897.6 11 Fund of Funds Asset Allocation 6,724.3 12 Mixed Assets Conservative 6,135.0 13 Convertible Bonds & Options 5,862.0 14 Bonds Emerging Markets Corporate 4,979.8 15 Bonds USD Short-Term 4,626.6 16 Bonds EUR Short-Term 4,363.5 17 Fund of Funds Conservative 4,248.4 18 Bonds EUR 4,134.1 19 Equities Europe 4,032.8 20 Short Term Dynamic 3,907.5 21 Fund of Funds Bonds 3,791.1 22 Bonds Global Corporates 3,588.7 23 Target Maturity Other 3,542.8 24 Fund of Funds Balanced 3,088.6 25 Bonds Global High Yield 2,891.4

REST -75,523.6 TOTAL 125,406.3


8

ALL SECTOR RANKING

FIGURE 9 SECTOR POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO ASSET GROWTH YTD 2013 (€M)

Eq Global

Eq Nth Am

Eq UKEq Europe

Eq JapanEq Switz

Eq Nth AM S/MidEq EurolandConv Bnd & Ops

Bnd Eur CIG Mix Bal

Bnd Speciality Bnd Flex Asset AllocBnd Eur Sh-T

Guarant'd

Eq Pac ex JpnEq Energy

Bnd Gl CurrBnd GBP CIG Bnd Em Mkt Loc CurEq Gold

Commod

Eq Em Mkt

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

-20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000

Per

form

ance

con

trib

utio

n (€

m)

Sales contribution (€m)

Note: Excludes money market funds.


9

Top 552%

6-1531%

16-2517%

FIGURE 10

FIGURE 11

TOP EUROPEAN MASTER GROUPS BY SALES YTD 2013 (€M)

MARKET SHARE OF LEADING MASTER GROUPS BY SALES

PAN-EUROPEAN MASTER GROUPS SALES

RANK MASTER GROUP NAT # FUNDS ENS YTD 2013

1 BlackRock US 419 13,574.6 2 JP Morgan US 229 13,267.4 3 Fr Templeton US 103 11,872.5 4 PIMCO US 61 11,291.6 5 Prudential/M&G GB 111 5,642.9 6 Standard Life GB 73 4,614.2 7 Intesa SP IT 443 4,059.6 8 BNY Mellon US 206 3,869.4 9 Vanguard US 39 3,386.8 10 Volksbanken Raiffeisenbanken DE 432 3,352.1 11 Pioneer IT 417 3,175.9 12 Invesco US 139 2,752.1 13 Wellington US 38 2,702.9 14 GAM Holding CH 246 2,611.7 15 Goldman Sachs US 96 2,558.2 16 State Street US 142 2,334.2 17 Stone Harbor US 12 2,153.6 18 Vontobel CH 61 1,991.4 19 Aberdeen GB 119 1,988.0 20 ING NL 270 1,920.6 21 Neuberger Berman US 18 1,811.2 22 Pictet CH 206 1,752.9 23 UBP CH 66 1,702.9 24 Baillie Gifford GB 29 1,698.5 25 AXA/AB FR 357 1,628.7

TOP 25 4,332 107,713.8 REST 24,809 53,643.5 TOTAL 29,141 161,357.3



10

Top 2535%

Rest65%

RANK MASTER GROUP NAT FUND NAME DOMICILE LAUNCH DATE TYPE ENS YTD 2013

1 Fr Templeton US Templeton Global Total Return Fund LU Aug-03 Bnd 7,935.0 2 Prudential/M&G GB M&G Optimal Income Fund UK Nov-06 Bnd 4,307.9 3 PIMCO US PIMCO GIS Unconstrained Bond Fund IE Oct-08 Bnd 3,861.4 4 PIMCO US PIMCO GIS Income Fund IE Nov-12 Bnd 3,140.8 5 JP Morgan US JPMorgan Funds - JF Asia Pacific Income Fund LU Jun-01 Mix 2,914.8 6 Standard Life GB Standard Life Global Absolute Return Strategies UK Jan-08 Mix 2,812.5 7 JP Morgan US JPMorgan Investment Funds - Global Income LU Dec-08 Mix 2,385.7 8 Prudential/M&G GB M&G Global Dividend UK Jul-08 Eq 2,121.3 9 Schroders GB Schroder ISF-Global Multi-Asset Income LU Apr-12 Mix 2,036.3 10 PIMCO US PIMCO GIS Diversified Income Fund IE Jun-05 Bnd 1,984.4 11 ING NL ING (L) Renta Fund Global High Yield LU Apr-01 Bnd 1,956.1 12 Standard Life GB Standard Life Global Absolute Return Strategies Fund LU Jan-11 Mix 1,924.2 13 Fr Templeton US Templeton Global Bond Fund LU Feb-91 Bnd 1,888.3 14 JP Morgan US JPMorgan Funds - Income Opportunity Fund LU Jul-07 Bnd 1,852.1 15 BlackRock US BlackRock Collective Investment Funds - UK Equity Tracker UK Jul-05 Eq 1,767.7 16 GAM Holding CH Julius Baer Multibond - Absolute Return Bond Fund LU Apr-04 Bnd 1,720.4 17 Amundi FR CPR Moné Carry FR Jan-09 Enh-MM 1,664.9 18 Ashmore GB Ashmore Sicav Emerging Markets Corporate Debt Fund LU Feb-10 Bnd 1,456.5 19 SKY Harbor US SKY Harbor Global Funds - U.S. Short Duration High Yield Fund LU Apr-12 Bnd 1,416.7 20 Invesco US Invesco Balanced-Risk Allocation Fund LU Sep-09 Mix 1,388.6 21 Polar Capital GB Polar Capital Funds Plc - Japan Fund IE Oct-01 Eq 1,371.0 22 AXA/AB FR AllianceBernstein SICAV - Select US Equity Portfolio LU Oct-11 Eq 1,356.4 23 ING NL ING (L) Flex Senior Loans LU Sep-05 Bnd 1,316.2 24 ETHENEA LU Ethna-AKTIV E LU Oct-01 Mix 1,312.1 25 PIMCO US PIMCO GIS Emerging Local Bond Fund IE Dec-07 Bnd 1,286.0

TOTAL TOP 25 57,177.4 REST 104,179.9 TOTAL 161,357.3

FIGURE 12

FIGURE 13

TOP 25 FUNDS BY ESTIMATED NET SALES YTD 2013 (€M)

MARKET SHARE OF BEST-SELLING 25 FUNDS

PAN-EUROPEAN FUND LEADERS SALES



11

PRODUCT THEMESEXCHANGE TRADED FUNDS

FIGURE 14

FIGURE 15

TOP 10 MASTER GROUPS BY SALES YTD 2013 (€M)

TOP 10 FUNDS BY SALES YTD 2013 (€M)

RANK MASTER GROUPS NAT ASSETS JUNE 2013 ENS YTD 2013

1 BlackRock US 113,060.3 4,846.1 2 State Street US 7,293.3 1,558.8 3 PIMCO US 2,365.7 1,349.4 4 ThinkCapital NL 606.4 469.5 5 UBS CH 9,395.2 411.6 6 Amundi FR 9,157.3 202.0 7 Natixis FR 739.9 191.6 8 Deka DE 4,537.2 171.4 9 Invesco US 1,010.5 135.0 10 Sv Handelsbanken SE 2,695.2 107.0

TOTAL TOP 10 150,861.0 9,442.4 TOTAL 257,175.3 2,915.1

RANK MASTER GROUPS FUND NAME ENS YTD 2013

1 BlackRock iShares® - iShares S&P 500 1,082.2 2 BlackRock iShares® - iShares MSCI Japan Monthly 833.1 3 PIMCO PIMCO Euro Enhanced Short Maturity Source ETF 592.0 4 BlackRock iShares® - iShares EUR Government Bond 3-5 550.1 5 PIMCO PIMCO US Dollar Short Maturity Source ETF 503.3 6 Deutsche A&WM db x-trackers MSCI JAPAN INDEX UCITS ETF 431.9 7 Cr Suisse CS ETF (IE) on MSCI Japan 342.8 8 BlackRock iShares® - iShares EUR Covered Bond 321.4 9 State Street SSgA SPDR S&P US Dividend Aristocrats ETF 315.6 10 BlackRock iShares® - iShares BC Euro Corporate Bond 303.1

TOTAL TOP 10 5,275.5 TOTAL 2,915.1


12

96%

1%3%

EUROPE

89%

3%8%

USA

PRODUCT THEMESACTIVE VS. PASSIVE

FIGURE 16 MARKET SHARE OF PASSIVE FUNDS BY ASSETS (DATA AS OF JUNE 2003)

Active ETF Index Tracking

88%

5%7%

EUROPE

75%

13%

12%

USA

FIGURE 17 MARKET SHARE OF PASSIVE FUNDS BY ASSETS (DATA AS OF JUNE 2013)

Active ETF Index Tracking



13

PRODUCT THEMESBONDS EMERGING MARKETS

FIGURE 18

FIGURE 19




1 Stone Harbor US 12,193.2 2,175.2 2 JP Morgan US 6,155.3 1,779.8 3 PIMCO US 12,708.4 1,398.7 4 Ashmore GB 11,218.8 1,198.5 5 Fr Templeton US 7,309.0 964.0 6 KBC BE 1,476.8 935.0 7 Pictet CH 14,595.4 849.9 8 RBC CA 10,205.5 537.4 9 BNY Mellon US 3,785.4 495.1 10 BlackRock US 4,135.3 466.4

TOTAL TOP 1O 83,783.0 10,799.9 TOTAL 177,595.8 11,091.7


1 Ashmore Ashmore Sicav Emerging Markets Corporate Debt Fund 1,456.5 2 PIMCO PIMCO GIS Emerging Local Bond Fund 1,286.0 3 Stone Harbor Stone Harbor Emerging Market Local Currency Fund 1,249.2 4 JP Morgan JPMorgan Funds - Emerging Markets Local Currency Debt Fund 1,101.0 5 Fr Templeton Templeton Emerging Markets Bond Fund 1,044.4 6 Pictet Pictet - Emerging Local Currency Debt 814.1 7 JP Morgan JPMorgan Funds - Emerging Markets Corporate Bond Fund 748.6 8 KBC KBC Participation Local Emerging Market Bonds 728.7 9 BNY Mellon BNY Mellon Emerging Markets Debt Local Currency Fund 554.3 10 Stone Harbor Stone Harbor Emerging Markets Debt Fund 495.5

TOTAL TOP 1O 9,478.4 TOTAL 11,091.7

Note: Includes sectors ‘Bonds Emerging Markets’, ‘Bonds Emerging Markets - Local Currency’ and ‘Bonds Emerging Markets Corporate’.


14

PRODUCT THEMESEQUITIES GLOBAL

FIGURE 20

FIGURE 21




1 BlackRock US 19,150.4 1,708.0 2 Deutsche A&WM DE 28,828.2 1,603.9 3 Prudential/M&G GB 16,321.2 1,217.5 4 Pictet CH 6,140.3 1,016.1 5 Amundi FR 5,279.3 960.9 6 Investec ZA 5,764.0 741.7 7 Vanguard US 7,121.4 687.5 8 Schroders GB 10,190.0 671.6 9 MFS US 6,882.0 599.3 10 Fundsmith GB 1,919.3 580.4

TOTAL TOP 1O 107,596.0 9,786.9 TOTAL 425,262.5 11,874.5


1 Prudential/M&G M&G Global Dividend 2,121.3 2 Deutsche A&WM DWS Top Dividende 1,026.6 3 Amundi Amundi International Sicav 901.4 4 BlackRock BlackRock Index Selection - Developed World Index Fund 759.4 5 Deutsche A&WM DWS Invest Top Dividend 733.5 6 Investec Investec GSF Global Franchise Fund 581.6 7 BNY Mellon Newton Global Higher Income 550.4 8 MFS MFS Meridian - Global Equity Fund 533.4 9 Fundsmith Fundsmith Equity 516.7 10 PIMCO PIMCO GIS EqS Dividend Fund 442.1

TOTAL TOP 1O 8,166.5 TOTAL 11,874.5


15

Top 5 sectors

42%

Next 10 sectors

27%

16-25 sectors

13% Rest18%

RANK FUND SECTOR # FUNDS ENS YTD 2013

1 Asset Allocation 144 8,199.52 Target Maturity Euroland 65 6,444.33 Target Maturity Other 30 6,034.64 Guaranteed Fund 38 4,092.55 Protected Fund 74 2,971.66 Bonds Global Currencies 28 2,941.07 Fund of Funds Guaranteed 31 2,372.58 Bonds EUR 19 1,912.89 Fund of Funds Asset Allocation 68 1,604.310 Equities North America 26 1,558.711 Equities Global 52 1,548.412 Not Sectorized 50 1,490.513 Bonds Flexible 25 1,423.414 Bonds Global Corporates 9 1,351.415 Equities Emerging Markets 33 1,224.316 Bonds Emerging Markets - Local Currency 14 1,182.417 Equities Europe 27 970.418 Speciality 24 954.219 Bonds Global High Yield 10 948.820 Bonds EUR Short-Term 10 885.521 Equities Speciality 28 853.522 Equities Mexico 1 783.623 Bonds Speciality 8 769.024 Fund of Funds Conservative 16 695.425 Bonds USD 5 603.6

TOP 25 835 53,816.1TOTAL 1,222 65,332.8

PRODUCT DEVELOPMENTNEW FUNDS BY SECTOR

FIGURE 22

FIGURE 23

TOP 25 SECTORS OF NEW FUNDS YTD 2013 (€M)

MARKET SHARE OF LEADING SECTORS OF NEW FUNDS


16

CROSS-BORDER PROGRESSGROUP WINNERS

FIGURE 24 TOP 25 INTERNATIONAL GROUPS BY ESTIMATED NET SALES YTD 2013 (€M)

RANK MASTER GROUP NAT # FUNDS ASSETS JUNE 2013 ENS YTD 2013

1 JP Morgan US 187 74,519.5 13,026.42 Fr Templeton US 90 127,840.7 11,777.73 BlackRock US 363 225,985.7 11,603.34 PIMCO US 61 116,191.1 11,291.65 Prudential/M&G GB 66 58,387.1 8,182.56 Invesco US 90 25,319.0 3,827.37 GAM Holding CH 131 32,108.3 3,636.58 Schroders GB 111 56,574.5 2,875.59 Pictet CH 167 46,381.7 2,849.210 Wellington US 39 16,053.9 2,702.911 State Street US 85 16,624.8 2,666.412 Goldman Sachs US 98 29,599.6 2,558.213 Vanguard US 32 30,992.3 2,490.714 Aberdeen GB 72 45,697.3 2,271.815 ING NL 92 24,650.8 2,241.916 Stone Harbor US 12 12,922.2 2,153.617 BNY Mellon US 59 17,012.3 2,013.218 Vontobel CH 37 11,105.0 2,009.119 Allianz GI DE 54 16,143.1 1,886.620 Neuberger Berman US 18 9,488.7 1,811.221 Standard Life GB 9 9,129.0 1,721.822 Polar Capital GB 12 4,272.9 1,612.223 Amundi FR 194 32,787.7 1,562.624 AXA/AB FR 193 81,542.3 1,496.725 SKY Harbor US 2 2,574.9 1,483.1

TOP 25 2,274 1,123,904.3 101,752.0REST 6,745 1,089,688.7 25,562.2TOTAL 9,019 2,213,593.0 127,314.2



17

CROSS-BORDER PROGRESSGROUP WINNERSFIGURE 25 GROUP POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO

ASSET GROWTH YTD 2013 (€M)

Orbis

Morgan Stanley

VanguardPioneerRobeco

MFS AXA/AB M&G

Invesco ING JP Morgan

Schroders

GAMBNY Pictet

GSFr Templeton

RBCWellington

Stone Harbor

Aberdeen

BlackRock

PIMCO

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

-4,000 -2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Per

form

ance

con

trib

utio

n (€

m)

Sales contribution (€m)



18

-6,000 -4,000 -2,000

02,0004,0006,0008,000

10,00012,00014,00016,000

IT CH DEU FR BE SP UK AU SWE NL

Domestic Foreign

-5,000 -4,000 -3,000 -2,000 -1,000

01,0002,0003,0004,0005,000

IT SP CH BE UK NL FR AU SWE DEU

Domestic Foreign

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

IT CH SP FR DEU UK BE AU NL SWE

Domestic Foreign

CROSS-BORDER PROGRESSFOREIGN SHARE OF SALES IN EUROPE

FIGURE 26 NET SALES OF FOREIGN GROUPS BY MARKET IN H1 2013 - ALL FUNDS (€M)

FIGURE 27 NET SALES OF FOREIGN GROUPS BY MARKET IN H1 2013 - EQUITY ONLY (€M)

FIGURE 28 NET SALES OF FOREIGN GROUPS BY MARKET IN H1 2013 - BOND ONLY (€M)

Note: Excludes money market funds & ETFs 1. Foreign activity is actual sales as measured by the Lipper SalesWatch

Confidential Service. 2. The 48 members are estimated to account for 75-80% of the total

cross-border sales activity.


19

CROSS-BORDER PROGRESSDOMESTIC VS. FOREIGN SECTORS

FIGURE 29 TOP 5 DOMESTIC AND CROSS-BORDER SECTORS IN THE MAJOR MARKETS

FRANCE

DOMESTIC ENS H1 2013 FOREIGN REAL SALES H1 20131 Short Term Dynamic 3,104.2 Bonds Emerging Markets - Local Currency Confidential2 Bonds EUR Short-Term 1,135.5 Bonds USD Corp. High Yield3 Convertible Bonds & Options 785.9 Equities Global4 Mixed Assets Conservative 710.9 Convertible Bonds & Options5 Equities North America 558.9 Bonds Global Corporates

GERMANY

DOMESTIC ENS H1 2013 FOREIGN REAL SALES H1 20131 Asset Allocation 3,869.1 Bonds Global Currencies Confidential2 Mixed Assets Conservative 2,540.0 Bonds Flexible3 Bonds EUR 1,572.7 Bonds Global Corporates4 Real Estate 1,402.4 Mixed Assets Balanced5 Bonds CNY 959.2 Equities North America

ITALY

DOMESTIC ENS H1 2013 FOREIGN REAL SALES H1 20131 Asset Allocation 8,460.1 Bonds Global Currencies Confidential2 Target Maturity Other 3,429.5 Bonds Flexible3 Bonds USD Corp. High Yield 1,188.9 Equities Global4 Bonds Global High Yield 672.1 Asset Allocation5 Bonds Global Currencies 537.1 Mixed Assets Balanced

SWITZERLAND

DOMESTIC ENS H1 2013 FOREIGN REAL SALES H1 20131 Bonds CHF 1,593.5 Bonds Flexible Confidential2 Mixed Assets Conservative 1,171.4 Bonds Global Currencies3 Equities Emerging Markets 1,111.3 Bonds Speciality4 Bonds Global High Yield 1,105.2 Equities North America5 Bonds Global Corporates 605.9 Equities Emerging Markets

UNITED KINGDOM

DOMESTIC ENS H1 2013 FOREIGN REAL SALES H1 20131 Asset Allocation 4,877.7 Asset Allocation Confidential2 Mixed Assets Balanced 1,707.7 Bonds Flexible3 Bonds Global Currencies 1,380.7 Bonds Global Currencies4 Equities Global 948.2 Bonds Global Corporates5 Equities Japan 920.9 Equities Pacific ex Japan

Note: Excludes money market funds & ETFs


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FOOTNOTES1. All data is year-to-date 2013 unless otherwise stated.

2. ‘International’ fund market. Lipper defines an International fund as a fund that sources less than 80% of its assets from any single country. Some fund groups have domestic and international funds.

3. ‘Domestic’ fund market. If a fund sources more than 80% of its assets from a single country then the fund is allocated to that market regardless of its domicile.

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

5. The investment category ‘other’ includes a variety of different product categories. For most markets, especially Belgium, Spain and France, the figure comprises guaranteed funds, but there are also derivatives and other speciality funds in the ‘other’ category.

6. Property funds are open-ended property funds only.

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

8. ENS stands for estimated net sales.

9. ETFs are included in Lipper’s database on mutual funds, but this excludes exchange-traded commodity products that are not mutual funds.

10. References to foreign activity relate to actual sales as measured by Lipper’s SalesWatch confidential service. The 48 SalesWatch members are estimated to account for 75-80% of total cross-border sales activity.

REUTERS/ROMEO RANOCO


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PRODUCT MANAGER, LIPPER FUNDFILE:JÉRÔME COUTEUR [email protected]

SABINA GRABOWSKA [email protected]

PRODUCT MANAGER, LIPPER SALESWATCH:BARBARA FERRARESI [email protected]

ELISABETTA FORELLI [email protected]

CHERYL PATE [email protected]

CONTACT US

REUTERS/NAVESH CHITRAKAR

LIPPER DATABASES FEATURED:FUNDFILE - http://bit.ly/LipperFundFile SALESWATCH - http://bit.ly/LipperSalesWatch

DESIGNED BY:NAOMI HANDKE

european fund market mid-year review 2013

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