Data DigestEuropean Fund Market2017 Edition

2017 Edition 02172017

Page 124

Broadridge a global fintech leader with over $7 billion in market capitalization providescommunications technology data and analytics solutions We help drive businesstransformation for our clients with solutions for enriching client engagement navigating riskoptimizing efficiency and generating revenue growth

For more information about Broadridge please visit broadridgecom

Jeacuterocircme CouteurProduct Manager FundFilejeromecouteurbroadridgecom

Barbara FerraresiProduct Manager SalesWatchbarbaraferraresibroadridgecom

Diana MackayEditorialdmmackaywilliamscom

Broadridge Database Featured Global Market Intelligence (GMI)httpgobroadridge1comGMI No part of this document may be distributed reproduced or posted without the express

written permission of Broadridge Financial Solutions Inc copy2017 Broadridge Financial Solutions Inc Broadridge and the Broadridge logo areregistered trademarks of Broadridge Financial Solutions Inc

2017 EDITION

broadridgecom

EUROPEAN FUND MARKET REVIEW

About BroadridgeAuthor Information

Page 224

Broadridge a global fintech leader with over $7 billion in market capitalization providescommunications technology data and analytics solutions We help drive businesstransformation for our clients with solutions for enriching client engagement navigating riskoptimizing efficiency and generating revenue growth

For more information about Broadridge please visit broadridgecom

Jeacuterocircme CouteurProduct Manager FundFilejeromecouteurbroadridgecom

Barbara FerraresiProduct Manager SalesWatchbarbaraferraresibroadridgecom

Diana MackayEditorialdmmackaywilliamscom

Broadridge Database Featured Global Market Intelligence (GMI)httpgobroadridge1comGMI No part of this document may be distributed reproduced or posted without the express

written permission of Broadridge Financial Solutions Inc copy2017 Broadridge Financial Solutions Inc Broadridge and the Broadridge logo areregistered trademarks of Broadridge Financial Solutions Inc

2017 EDITION

broadridgecom

EUROPEAN FUND MARKET REVIEW

About BroadridgeAuthor Information

Page 224

EUROPEAN FUND MARKET REVIEW 2017 EDITION

2016 ndash a year to remember with fond memories for some but certainly not allAfter four years of bullish net sales flows with long-term funds pulling in well overeuro200bn a year 2016 ended with a sharp reminder of the fragile nature of retail-investor sentiment In a year of historic twists and turns mainstream investorsretreated to the sidelines preferring to keep their savings in deposits and lose onnegative interest rates rather than risk losses on the vagaries of the markets Netinflows slumped to just euro97bn and symptomatic of the high levels of risk-aversion building money market funds gathered an identical volume The latterare supported mainly by institutions but their success reflected the more widelyheld view that safe was best This was the liquidity sectorrsquos strongest year sincethe 2007 financial crisis

Retail investors in the main found the roller coaster ride a little bit too exciting toendure but the European retail market comprises two distinct communitiesmainstream consumers and sophisticated investors including institutions placingmoney directly into funds Whilst consumers watched from the sidelinessophisticated investors manoeuvred client portfolios through a series of rapid-fireallocation decisions to get the best performance from the fast-changing marketsThis made sales flows volatile with large sums moving between different fundsand sectors as news headlines forced continual portfolio reviews In effect afund-sales iceberg with paltry net inflows hiding a landmass of money in motion

broadridgecom

FIGURE 1 - CUMULATIVE NET SALES BY YEAR (eurobn)

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

2013 2014 2015 2016

0

155

310

465

TOTAL OF FUND CLOSURES

NET SALES (H1 2016)

1848TOTAL OF MASTER GROUPS

2694TOTAL OF COMPANIES

33833TOTAL OF FUNDS

TOTAL OF FUND LAUNCHES 2286

2918

TOTAL NET ASSETS (DEC 2016)

NET SALES (2016)

NET SALES (H2 2016)

ASSET GROWTH (2015-2016)

euro8738bn

euro3885bn

euro245bn

euro1685bn

euro193bn

KEY DATA

The year began with a dark cloud over China The Shanghai bourse wentthrough the floor whilst investors were still licking the wounds inflicted by the USFedrsquos interest-rate rise at the back end of 2015 Worries about the state of theglobal economy meant that the year began with two months of cripplingredemptions (euro41bn) forcing the ECB to announce an extension of its bond-buying programme and putting further rate rises from the Fed on hold Everycloud has a silver lining and the central-bank response in this instance sentinvestors racing to buy bonds before the ECB programme was stepped upBetween March and May euro63bn was pumped into investment funds threequarters of which went into fixed income products

References are to long-term funds including ETFs but excludingmoney market funds and funds of funds unless otherwise stated

Then came the Brexit referendum and macro-economic concerns were displacedby anguish over political risk In one month euro18bn was culled from funds withequities suffering the deepest cut But a month later the money was back In asomewhat surprising rush of enthusiasm the shock Brexit vote was followed byfour months of exhilarating sales volumes averaging euro25bn a month In truth thiswas the lull before the next storm - the US presidential election with a criticalItalian referendum following shortly after The election result across the pond wasanother slap in the face for funds It yielded another month of sharp redemptionsand from here the asset-management year limped to a disappointing close

Overview

2016 in brief

Buyer beware

In one month euro18bn was culled from funds

Page 324

2017 EDITION

Velocity favoured the passives although it was underpinned by more secularregulatory pressures encouraging fund selectors to increase their weighting ofpassives in order to reduce portfolio costs Mifid II is a year away but rules relatingto commissions are already causing selectors to consider how best to adapt theirbusiness models to protect their margins Passive fundsrsquo flows failed to overtakethe record they set in 2015 but they dominated the sales intake with 74 of overallinflows split relatively evenly between ETFs and trackers Their dominance in theequity category was even more extreme despite a successful flurry of activeemerging market equity inflows during the third quarter But throughout the yearactive equity funds were bathed in a sea of red (-euro85bn) whilst their passivecounterparts generated inflows of euro25bn

Which groups navigated these challenging market cycles to generate the largestsales flows No surprise that the global powerhouse BlackRock kept the leadingposition that it has held onto for the last four years Net sales of euro16bn for the yearwere a healthy euro2bn ahead of its closest rival Nordea But strip out the passivesfrom BlackRockrsquos results and Nordea skipped into the lead benefiting from thesurge of support given to its blockbuster Stable Return fund This product alonegenerated over euro10bn of inflows to become Europersquos most popular fund of theyear

FIGURE 3 - MARKET SENTIMENT

of funds with negative flows of funds with positive flows

5252

4848

FIGURE 2 - PASSIVE VS ACTIVE NET SALES IN 2016 (eurobn)

Active ETF Index Tracking

12141214

379379

335335

broadridgecom

euro193bnNet Sales 2016

+465Asset Growth 2016

Once again Italian investors proved themselves to be the most resilient to marketshock waves and also the most enthusiastic about cross-border funds LocalItalian groups recorded larger inflows than those in any other market (euro19bn) andaccording to Broadridge SalesWatch data which records the source of sales for allthe significant cross-border groups foreign funds collected a roughly similaramount Bank debt and the constitutional referendum caused some tricky periodsof sales drought but they were temporary and ultimately inconsequential Thesame could not be said of the UK market where investors were riven with pre- andpost-Brexit doubts The UK never a strong market for cross-border groups endedthe year with its worst domestic redemptions on record (-euro34bn) doubling up asthe highest outflows of any European market 2016 was the UKrsquos annus horribilisand it was equities (-euro22bn) particularly the staple UK Equity Income productsthat suffered the deepest cut Other markets to do well were Germany and Spainalthough Spain offered a considerably diminished opportunity to foreign groupsfollowing a strategic shift away from funds-of-funds support by the indigenous bankdistributors

Mixed asset funds remained a beacon of light for active managers their flexiblestrategies difficult for passives to replicate This segment suffered considerabledecay in its sales pace but it still filed euro69bn of net receipts all of which was inactively managed funds Last yearrsquos most successful category though was bondeven though its bubble burst after the US election Net inflows were euro78bn splitroughly 5050 between passive and active funds

Overview

Relentless rise of passives

Market success

Group success

active equity funds were bathed in a sea of red

EUROPEAN FUND MARKET REVIEW

Page 424

2017 EDITION

FIGURE 4 - EUROPEAN NET SALES IN 2016 (eurobn)

Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016

Bond Equity Mixed Assets Money Market

-25

0

25

50

75

FIGURE 5 - GLOBAL NET SALES IN 2016 (eurobn)

Asia-Pacific Europe International Latin America MEA North America

Bond Equity Mixed Assets Money Market

-90

0

90

180

270

broadridgecom

Overview

EUROPEAN FUND MARKET REVIEW

Page 524

2017 EDITION

broadridgecom

FIGURE 6 - HISTORICAL GLOBAL ASSETS (euroT)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Asia-Pacific Europe International Latin America MEA North America

168168

132132159159

186186 185185207207

226226

270270

302302328328

FIGURE 7 - GLOBAL ASSETS BY INVESTMENT TYPE

Bond Equity Mixed Assets Money Market

Asia-Pacific Europe International Latin America MEA North Amercia

Overview

EUROPEAN FUND MARKET REVIEW

Page 624

FIGURE 10 - BEST-SELLING EQUITY FUNDS IN 2016 (eurom)

Fund Name Fund Strategy Fund Sector Net Sales

iShares Core SampP 500 UCITS ETF (USD) Passive Equities North America

Fundsmith Equity Active Equities Global

State Street ACS North America Index Equity Passive Equities North America

DWS Top Dividende Active Equities Global Income

Vanguard Funds Plc - Vanguard SampP 500 UCITS ETF Passive Equities North America

iShares Core MSCI World UCITS ETF Passive Equities Global

4111

3537

3167

2739

2474

2298

2017 EDITION

FIGURE 8 - BEST-SELLING BONDS FUNDS IN 2016 (eurom)

Fund Name Fund Strategy Fund Sector Net Sales

PIMCO GIS Income Fund Active Bonds Global Currencies

Carmignac Seacutecuriteacute Active Bonds EUR Short-Term

Eurizon EasyFund - Treasury EUR T1 Active Bonds Global Currencies

AEAM Dutch Mortgage Fund Active Asset-backed Securities

AB FCP I American Income Portfolio Active Bonds USD

CaixaBank Rentas Euribor FI Active Bonds Target Maturity

6825

5048

4221

3277

2801

2771

broadridgecom

FIGURE 9 - BEST-SELLING MIXED FUNDS IN 2016 (eurom)

Fund Name Fund Strategy Fund Sector Net Sales

Nordea 1 - Stable Return Fund Active Asset Allocation

JPMorgan Investment Funds - Global Macro Opportunities Fund Active Asset Allocation Alternative

Invesco Perpetual Global Targeted Returns Active Asset Allocation Alternative

Invesco Global Targeted Returns Fund Active Asset Allocation Alternative

PrivatFonds Kontrolliert Active Mixed Assets Conservative

Aviva Investors Multi-Strategy Target Return Active Asset Allocation Alternative

10494

5073

4225

3256

2941

2430

Best Sellers

EUROPEAN FUND MARKET REVIEW

Page 724

FIGURE 11 - EUROPEAN MARKET RANKING BY NET SALES IN 2016 (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

France

Italy

Spain

Germany

Switzerland

Norway

Finland

Netherlands

Sweden

Turkey

Croatia

Czech Republic

Iceland

Russia

Romania

Bulgaria

Liechtenstein

Slovenia

Lithuania

Malta

Austria

Ukraine

Luxembourg

Latvia

Estonia

Slovakia

Portugal

Hungary

Denmark

Greece

Poland

Belgium

479923

60684

-11564

106168

100666

20062

29453

3041

5618

8494

-12386

4953

2814

1580

-2624

2740

1248

268

145

435

-474085

-216836

-5276

3905

1533

26354

4314

10603

-4023

20114

36936

-210

28

85

-554

-353

-13

184

242

-631

634399

269527

214183

-21924

24792

-9190

-19623

10200

5390

-677

-7061

422

2417

-655

5654

9

-116

184

432

-6487

7977

22124

-4378

-953

27756

6462

5644

349

-29

-6

-6

0

388940

145199

-2987

84278

3349

45687

3715

136

1166

-2651

14796

-314

8

2917

59

-885

639

158

-67

37

10830

-31244

-23726

514

34352

52305

15423

428

4438

-12728

-19522

489

-0

102

34

-211

0

-2

5

76

1487

-16691

-50

-58

-437

-139

1332

114

-107

-1007

-11371

7030

167

-431

2954

-0

-20

-16

321

-117

-1812

-34

-10958

-712

-5861

16405

-444

952

-0

-2330

-2713

-7595

-1123

-5615

3576

-133802

-124

-225

2

-14

443

-86

3

1509

-3

-813

5795

-0

11

-651

-486

-1126

4436

-711

-6119

3451

-44

515

7392

792

-653

3709

10

-489

414

-6788

1033521

235307

192754

168563

163739

162975

39744

24409

18233

12901

12764

5339

5267

4001

2535

1544

1541

788

317

278

196

191

177

-0

-59

-74

-116

-2444

-4332

-4947

-7298

-8621

-19359

-112194

Sum 781897 -597797 959271 59963 687963 36343 1927641

2017 EDITION

broadridgecom

European Sales

EUROPEAN FUND MARKET REVIEW

Page 824

2017 EDITION

FIGURE 13 - TOP AND BOTTOM FIVE SECTORS BY SALES IN 2016 (eurom)

MM

GBP

MM

Eur

o

Asse

t Allo

c Alt

MM

USD

Eq E

m M

kt

Bnd

USD

Corp

HY

Bnd

Flex

Eq Ja

pan

Bnd

Eur

Eq E

urop

e

0

25

50

broadridgecom

FIGURE 12 - TOP SECTORS BY SALES IN 2016 (eurom)

Year

Fund Sector

2015 2016

Net Sales Net Sales Rank Net Sales Net Sales Rank

Money Market GBP

Money Market EUR

Asset Allocation Alternative

Money Market USD

Equities Emerging Markets

Bonds Global Currencies

Bonds Global Corporates

Bonds Emerging Markets

Asset Allocation

Bonds EUR Short-Term

Mixed Assets Conservative

Bonds Inflation Linked

Equities Global

Bonds EUR Corp Inv Grade

Bonds USD

Commodities

Fund of Funds Balanced

Bonds Target Maturity

Fund of Funds Bonds

Bonds Global High Yield

Fund of Funds Asset Allocation

Equities Alternative

21223

35123

53618

32807

-7062

16372

5765

-6289

53125

3817

28844

2545

-6589

7589

1203

2261

24274

-10629

8219

-1241

13

4

1

6

219

15

29

217

2

34

8

40

218

22

58

43

11

223

20

203

43475

37420

34514

17428

15047

15019

14195

12193

12135

11513

11323

10233

10150

8583

8430

7958

7957

7926

7850

7593

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

25359

30561

9

7

6916

6717

21

22

All Sector Ranking

EUROPEAN FUND MARKET REVIEW

Page 924

Values

TOP 25

REST

TOTAL

171626

-80785

90841

Values

TOP 25

REST

TOTAL

148629

-96455

52174

2017 EDITION

FIG 15 - TOP MASTER GROUPS BY SALES IN 2016 (eurom) - INC ETFs

Master Groups NAT Funds Net Sales

BlackRock US

Nordea SE

Intesa SP IT

Vanguard US

KBC BE

Aviva GB

VRUnion DE

State Street US

Pictet CH

ORIX Robeco JP

MMCMercer US

La Caixa ES

Northern Trust US

Cr Suisse CH

Flossbach von Storch DE

New York Life Candriam US

Carmignac FR

Bridgewater US

PIMCO US

Fundsmith GB

UBI Banca IT

Amundi FR

Legal amp General GB

Jupiter Investment GB

Royal London GB

522

252

598

64

1000

163

434

184

135

102

51

102

27

357

15

161

20

3

67

2

16190

14405

13638

12506

12296

10521

9056

8698

6764

6573

5512

5505

5211

4968

4515

4412

4367

4023

3956

3854

69

615

84

51

46

3329

3018

2888

2762

2660

FIG 14 - TOP MASTER GROUPS BY SALES IN 2016 (eurom) - EX ETFs

Master Groups NAT Funds Net Sales

Nordea SE

Intesa SP IT

KBC BE

Aviva GB

VRUnion DE

Vanguard US

Pictet CH

ORIX Robeco JP

MMCMercer US

La Caixa ES

Northern Trust US

Cr Suisse CH

Flossbach von Storch DE

New York Life Candriam US

Carmignac FR

PIMCO US

Bridgewater US

State Street US

Fundsmith GB

UBI Banca IT

Legal amp General GB

Jupiter Investment GB

Royal London GB

Aegon NL

Algebris GB

252

598

1000

163

433

46

135

102

51

102

27

356

15

161

20

65

3

84

2

69

14405

13638

12296

10521

9059

8694

6764

6573

5512

5505

5211

4773

4515

4412

4367

4061

4023

3913

3854

3329

84

51

46

78

5

2888

2762

2660

2527

2367

broadridgecom

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

Pan-European Master Groups Sales

EUROPEAN FUND MARKET REVIEW

Page 1024

Values

TOP 25

REST

TOTAL

171626

-80785

90841

2017 EDITION

broadridgecom

Figure 16 - TOP 25 FUNDS BY NET SALES IN 2016 (eurom)

Master Groups Fund Name Domicile Strategy Type Launch Date Net Sales

Nordea Nordea 1 - Stable Return Fund LU Active Mix 200511

PIMCO PIMCO GIS Income Fund IE Active Bnd 201211

JP Morgan JPMorgan Investment Funds - Global Macro Opportunities Fund LU Active Mix 199902

Carmignac Carmignac Seacutecuriteacute FR Active Bnd 199504

Invesco Invesco Perpetual Global Targeted Returns GB Active Mix 201309

Intesa SP Eurizon EasyFund - Treasury EUR T1 LU Active Bnd 201503

BlackRock iShares Core SampP 500 UCITS ETF (USD) IE Passive Eq 201005

Bridgewater Bridgewater Pure Alpha Strategy 18 Volatility VG Active Hdge 199112

Fundsmith Fundsmith Equity GB Active Eq 201011

Aegon AEAM Dutch Mortgage Fund NL Active Bnd 201308

Invesco Invesco Global Targeted Returns Fund LU Active Mix 201312

State Street State Street ACS North America Index Equity GB Passive Eq 201603

VRUnion PrivatFonds Kontrolliert DE Active Mix 201007

AXA AB FCP I American Income Portfolio LU Active Bnd 199307

La Caixa CaixaBank Rentas Euribor FI ES Active Bnd 201606

Deutsche AM DWS Top Dividende DE Active Eq 200304

Cr Suisse CS Nova (Lux) Fixed Maturity Bond Fund 2019 LU Active Bnd 201604

Vanguard Vanguard Funds Plc - Vanguard SampP 500 UCITS ETF IE Passive Eq 201205

Aviva Aviva Investors Multi-Strategy Target Return GB Active Mix 201407

Flossbach von Storch Flossbach von Storch SICAV - Multiple Opportunities LU Active Mix 200710

ORIX Robeco Robeco High Yield Bonds LU Active Bnd 199804

BBVA Group BBVA Bonos Internacional Flexible 0-3 FI ES Active Bnd 201505

La Caixa CaixaBank Rentas Euribor 2 FI ES Active Bnd 201609

BlackRock iShares Core MSCI World UCITS ETF IE Passive Eq 200909

PIMCO PIMCO GIS Global Investment Grade Credit IE Active Bnd 200307

10494

6825

5073

5048

4225

4221

4111

3678

3537

3277

3256

3167

2941

2801

2771

2739

2689

2474

2430

2375

2345

2333

2325

2298

2284

Note Excludes money markets funds

Pan-European Fund Leaders Sales

EUROPEAN FUND MARKET REVIEW

Page 1124

2017 EDITION

FIGURE 18 - TOP 10 MASTER GROUPS BY SALES IN 2016 (eurom)

Master Groups NAT Funds Assets Net Sales

BlackRock US

State Street US

Amundi FR

Vanguard US

UBS CH

Deutsche Boumlrse DE

BNP Paribas FR

Deka DE

Swisscanto CH

Soc GenLyxor FR

292

100

105

18

123

1

35

46

4

254

252952

21134

24805

23790

29060

4157

5551

8321

6578

50859

23549

4785

3825

3811

2503

2150

1130

885

617

550

Sum 978 427205 43805

FIGURE 17- TOP 10 FUNDS BY SALES IN 2016 (eurom)

Master Groups Fund Name Net Sales

BlackRock iShares Core SampP 500 UCITS ETF (USD)

Vanguard Vanguard Funds Plc - Vanguard SampP 500 UCITS ETF

BlackRock iShares Core Euro Corporate Bond UCITS ETF

iShares Core MSCI World UCITS ETF

iShares EURO STOXX 50 UCITS ETF (DE)

Soc GenLyxor Lyxor UCITS ETF EURO STOXX 50

BlackRock iShares Euro High Yield Corporate Bond UCITS ETF

iShares MSCI Europe UCITS ETF (Inc)

Deutsche AM db x-trackers EURO STOXX 50reg UCITS ETF (DR)

BlackRock iShares STOXX Europe 600 (DE)

12016

11539

6864

6540

5099

5010

4792

4397

4216

4138

Sum 64610

broadridgecom

Product ThemesExchange Traded Funds

EUROPEAN FUND MARKET REVIEW

Page 1224

2017 EDITION

FIGURE 20 - TOP 10 MASTER GROUPS BY SALES IN 2016 (eurom)

Master Groups NAT Funds Assets Net Sales

Vanguard US

Northern Trust US

UBS CH

State Street US

Swisscanto CH

Legal amp General GB

Laumlnsfoumlrsaumlkrings SE

KBC BE

Den Norske NO

MMCMercer US

34

26

65

55

69

42

5

30

3

3

79794

13382

64896

33689

27722

26645

3767

4440

2023

5483

8966

5174

4820

4687

2510

1755

1591

1179

994

954

Sum 332 261841 32630

FIGURE 19 - TOP 10 FUNDS BY SALES IN 2016 (eurom)

Master Groups Fund Name Net Sales

State Street State Street ACS North America Index Equity

Vanguard Vanguard Investment Series Plc - Vanguard Global Bond Index Fund

Vanguard Investment Series Plc - Vanguard US Treasury Inflation-Protected Securities Index Fund

LloydsSWIP Scottish Widows Corporate Bond Tracker Fund

Northern Trust Northern Trust World Custom ESG Equity Index

HSBC HSBC Japan Index

Northern Trust Northern Trust Developed Real Estate Index UCITS FGR Fund

Northern Trust UCITS Common Contractual Fund - World Equity Index Fund

Vanguard Vanguard Investment Series Plc - Vanguard Emerging Markets Stock Index Fund

Den Norske DNB Global Indeks

316733

164155

144479

107232

102532

87021

86021

78849

78797

76756

Sum 1242575

broadridgecom

Product ThemesIndex Tracking Funds

EUROPEAN FUND MARKET REVIEW

Page 1324

2017 EDITION

FIG 22 - MARKET SHARE OF PASSIVE FUNDS BY ASSETS IN 2016

Index Tracking ETF Active

88

77

8585

FIG 21 - MARKET SHARE OF PASSIVE FUNDS BY ASSETS IN 2002

Index Tracking ETF Active

3311

9696

FIGURE 23 - HISTORICAL NET SALES (eurobn)

2013 2014 2015 2016

Active ETF Index Tracking

26062606

164164 194194

30403040

405405 438438

20172017

652652

363363187187

387387 335335

Note Excludes money market funds

broadridgecom

Product ThemesActive vs Passive

EUROPEAN FUND MARKET REVIEW

Page 1424

2017 EDITION

FIGURE 25 - TOP 10 MASTER GROUPS BY SALES IN 2016 (eurom)

Master Groups NAT Funds Assets Net Sales

Amundi FR

BlackRock US

Nordea SE

ORIX Robeco JP

Aviva GB

Vanguard US

UBS CH

Fidelity US

Goldman Sachs US

PrudentialMampG GB

9

20

9

11

4

3

18

11

7

4

4791

20800

5829

8750

2427

7762

8808

8444

2382

4021

2473

1923

1632

1340

1182

1117

1024

1013

909

816

Sum 96 74014 13429

broadridgecom

FIGURE 24 - TOP 10 FUNDS BY SALES IN 2016 (eurom)

Master Groups Fund Name Net Sales

BlackRock iShares Core MSCI Emerging Markets IMI UCITS ETF

Amundi Amundi ETF MSCI Emerging Markets UCITS ETF

ORIX Robeco Robeco Emerging Conservative Equities

PrudentialMampG Eastspring Investments Global Emerging Markets Dynamic

Aviva Aviva Investors - Emerging Markets Equity Income Fund

Goldman Sachs GS Emerging Markets Broad Equity Portfolio

Nordea Nordea 1 - Stable Emerging Markets Equity Fund

Vanguard Vanguard Investment Series Plc - Vanguard Emerging Markets Stock Index Fund

Amundi Amundi Funds Equity Emerging World

BTPS BT Hermes Global Emerging Markets

199164

150161

107040

106244

95149

94597

91057

78797

74192

56460

Sum 1052862

Product ThemesEquities Emerging Markets

EUROPEAN FUND MARKET REVIEW

Page 1524

2017 EDITION

broadridgecom

FIGURE 27 - TOP 10 MASTER GROUPS BY SALES IN 2016 (eurom)

Master Groups NAT Funds Assets Net Sales

ORIX Robeco JP

Aviva GB

New York Life Candriam US

Cr Suisse CH

AXA FR

Baring US

PrudentialMampG GB

BNY Mellon US

PIMCO US

Generali IT

2

3

2

3

6

4

3

4

1

4

7741

5701

2634

5010

21215

2269

2780

1135

4641

592

2347

1379

1339

1037

835

621

573

536

501

476

Sum 32 53718 9643

FIGURE 26 - TOP 10 FUNDS BY SALES IN 2016 (eurom)

Master Groups Fund Name Net Sales

ORIX Robeco Robeco High Yield Bonds

Aviva Aviva Investors - Global High Yield Bond

New York Life Candriam Candriam Bonds Credit Opportunities

Cr Suisse CS Nova (Lux) Global Senior Loan Fund

AXA AB FCP I Global High Yield Portfolio

PrudentialMampG MampG Global Floating Rate High Yield

PIMCO PIMCO GIS Global High Yield Bond Fund

Baring Barings Global High Yield Credit Strategies

BNY Mellon BNY Mellon Global Short Dated High Yield Bond Fund

JP Morgan JPMorgan Investment Funds - Global High Yield Bond Fund

234531

133173

115777

103450

96531

70438

50130

49268

42600

35957

Sum 931855

Product DevelopmentBonds Global High Yield

EUROPEAN FUND MARKET REVIEW

Page 1624

2017 EDITION

broadridgecom

FIGURES 28 - FUND LAUNCHES amp CLOSURES

Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016

Fund Launches Fund Closures Fund Mergers

6969

185185

191191

114114

118118

223223

5656

175175

197197

104104

156156

194194

6464

178178

182182

7171

187187

200200

8484

168168

213213

4848

123123

133133

9999

159159

186186

9898

122122

192192

7676

189189

182182

8989

186186

193193

FIGURE 29 - TOP SELLING NEW FUND LAUNCHES IN 2016 (eurom)

Fund Name Fund Domicile Launch Date Net Sales

CS Nova (Lux) Fixed Maturity Bond Fund 2019 Luxembourg 201604

CaixaBank Rentas Euribor 2 FI Spain 201609

CaixaBank Rentas Euribor FI Spain 201606

DWS FlexPension II 2031 Luxembourg 201607

GS USD Treasury Instruments Liquid Reserves Ireland 201605

Multi Manager Access II - High Yield Luxembourg 201604

State Street ACS North America Index Equity United Kingdom 201603

UBI SICAV - Euro Corporate Bond High Potential Luxembourg 201605

UniInstitutional Euro Reserve Plus Germany 201602

Vanguard Investment Series Plc - Vanguard US Treasury Inflation-Protected Securities Index Fund Ireland 201610

2689

2325

2771

1734

1717

3832

3167

1361

3407

1445

Product Development

EUROPEAN FUND MARKET REVIEW

Page 1724

FIGURE 32 - NUMBER OF FUND LAUNCHES BY MAIN ASSET CLASS

2011 2012 2013 2014 2015 2016

Bond Equity Mixed Assets

675675

926926

456456

733733

659659

463463

718718 725725

541541

665665

851851

578578 579579

927927

640640

494494

664664

505505

2017 EDITION

broadridgecom

FIGURE 32 - FUND LAUNCHES BY REGION IN 2016 (eurom)

Fund Region Funds Net Sales

Europe

International

1217

1069

98667

75333

Sum 2286 174000

FIGURE 31 - NUMBER OF FUND LAUNCHES BY STRATEGY

Active ETF Index Tracking

20832083

125125

7878

FIGURE 30 - FUND LAUNCHES BY GROUP IN 2016 (eurom)

Master Group Funds Net Sales

Intesa SP

BNP Paribas

Pioneer

Allianz GI

Cr Suisse

State Street

UBS

GAM Holding

VRUnion

La Caixa

UBI Banca

93

72

34

29

29

23

22

21

18

13

10

1637657

356485

524480

348767

670371

362228

489178

428731

437740

604485

510552

Sum 364 6370676

Product Development

EUROPEAN FUND MARKET REVIEW

Page 1824

Values

TOP 25

REST

TOTAL

130117

-89556

40561

Values

TOP 25

REST

TOTAL

105357

-99044

6312

broadridgecom

FIG 34 - TOP CROSS-BORDER GROUPS BY SALES IN 2016 (eurom) - INC ETFs

Master Groups NAT Funds Net Sales

BlackRock US

Nordea SE

Vanguard US

KBC BE

ORIX Robeco JP

Aviva GB

Pictet CH

MMCMercer US

Cr Suisse CH

State Street US

Amundi FR

Carmignac FR

Bridgewater US

PIMCO US

New York Life Candriam US

Northern Trust US

AXA FR

Old Mutual ZA

Algebris GB

Muzinich US

AQR Capital US

Soc GenLyxor FR

Cr Mutuel FR

Aeris CH

Baring US

440

94

51

79

73

30

101

51

128

161

225

20

3

67

98

19

198

40

5

15

15120

13681

11211

10168

7641

7454

6796

5512

5439

4955

4520

4367

4023

3956

3602

3473

3359

2368

2367

2210

12

305

83

3

56

1802

1632

1547

1503

1410

FIG 33 - TOP CROSS-BORDER GROUPS BY SALES IN 2016 (eurom) - Ex ETFs

Master Groups NAT Funds Net Sales

Nordea SE

KBC BE

ORIX Robeco JP

Aviva GB

Vanguard US

Pictet CH

MMCMercer US

Cr Suisse CH

Carmignac FR

PIMCO US

Bridgewater US

New York Life Candriam US

Northern Trust US

AXA FR

Old Mutual ZA

Algebris GB

Muzinich US

AQR Capital US

Cr Mutuel FR

Aeris CH

Baring US

SYQUANT FR

BTPS BT GB

Jupiter Investment GB

Dimensional US

94

79

73

30

33

101

51

128

20

65

3

98

19

198

40

5

15

12

83

3

13681

10168

7641

7454

7400

6796

5512

5439

4367

4061

4023

3602

3473

3359

2368

2367

2210

1802

1547

1503

56

3

15

19

19

1410

1315

1300

1294

1264

Note exclude money markets funds and ETF Note exclude money market funds

2017 EDITION

Cross-Border Progress

Cross-Border Progress

Group Winners

EUROPEAN FUND MARKET REVIEW

Page 1924

broadridgecom

FIGURE 35 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2016 - ALL FUNDS (eurobn)

-14 0 14 28 42

Cross Border Domestic Round Trip

ItalyGermany

NetherlandsAustria

BelgiumSweden

SpainFrance

United KingdomSwitzerland

FIGURE 36 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2016 - EQUITY ONLY (eurobn)

-284 -213 -142 -71 0 71

Cross Border Domestic Round Trip

GermanySweden

NetherlandsBelgiumAustria

ItalySpain

FranceSwitzerland

United Kingdom

FIGURE 37 - NET SALES OF CROSS-BORDER GROUPS BY MARKET IN 2016 - BOND ONLY (eurobn)

-67 0 67 134 201 268

Cross Border Domestic Round Trip

ItalySpain

United KingdomBelgium

GermanyAustria

NetherlandsSweden

SwitzerlandFrance

Note Excludes money market funds amp ETFs

1 Foreign activity is actual sales as measured bythe Broadridge SalesWatch Confidential Service

2 The 60 members are estimated to account for75-80 of the total cross-border sales activity

Cross-Border Progress

Cross-Border Progress

Cross-Border Share of Sales in Europe

Page 2024

broadridgecom

FIGURE 36 - DOM FRANCE

Domestic Net Sales

Equities Alternative

Protected Fund

Bonds Inflation Linked

Equities France MidSmall Caps

Asset Allocation Alternative

2310

2019

918

776

444

FIGURE 36 - DOM GERMANY

Domestic Net Sales

Asset Allocation Alternative

Mixed Assets Conservative

Real Estate

Bonds EUR

Equities Global Income

5295

3075

1984

1982

1254

FIGURE 36 - DOM ITALY

Domestic Net Sales

Bonds Global Currencies

Mixed Assets Target Maturity

Mixed Assets Conservative

Bonds Emerging Markets

Bonds EUR Corp Inv Grade

7510

4672

3890

2541

1842

FIGURE 36 - DOM SWITZERLAND

Domestic Net Sales

Equities Switzerland

Bonds Global Corporates

Bonds Emerging Markets

Equities Emerging Markets

Bonds CHF

233338

172162

133284

94704

91618

FIGURE 36 - DOM UNITED KINGDOM

Domestic Net Sales

Asset Allocation Alternative

Equities North America

Equities Alternative

Bonds UK Gilt

Bonds Inflation Linked

1041258

207514

186569

179868

170941

FIGURE 36 - SW SECTOR FRANCE

Cross-Border Real Sales

Bonds Global Currencies

Asset Allocation

Bonds Inflation Linked

Equities Europe Income

Bonds Emerging Markets

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 36 - SW SECTOR ITALY

Cross-Border Real Sales

Asset Allocation

Bonds EUR Short-Term

Mixed Assets Conservative

Bonds EUR Corp High Yield

Bonds Global Corporates

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 36 - SW SECTOR GERMANY

Cross-Border Real Sales

Mixed Assets Income

Asset Allocation Alternative

Bonds EUR Corp High Yield

Bonds Global High Yield

Bonds Emerging Markets

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 36 - SW SECTOR SWITZWELAND

Cross-Border Real Sales

Asset Allocation

Bonds Global High Yield

Bonds Global Corporates

Equities Emerging Markets

Bonds Target Maturity

Confidential

Confidential

Confidential

Confidential

Confidential

FIGURE 36 - SW SECTOR UK

Cross-Border Real Sales

Equities Alternative

Bonds Emerging Markets - Local Currency

Bonds Global Corporates

Bonds Emerging Markets

Asset Allocation

Confidential

Confidential

Confidential

Confidential

Confidential

FRANCE

FIGURE 38 - TOP 5 DOMESTIC AND CROSS-BORDERS SECTORS IN THE MAJOR MARKETS (eurom)

GERMANY

ITALY

SWITZERLAND

UNITED KINGDOM

Real Sales dataavailable to SalesWatchmembers only

Cross-Border ProgressDomestic vs Cross-Border Sectors

Page 2124

2017 EDITION

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 in2016

Global Market Intelligence (GMI) helps you make more strategic decisionsmore effectively allocate your companyrsquos resources and most importantlybe more 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 60 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 2016 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 60 SalesWatch membersare estimated to account for 75-80 of total cross-border sales activity

Footnotes About the Report

EUROPEAN FUND MARKET REVIEW

Page 2224

broadridgecom

Page 2324

broadridgecom

2017 EDITION

Global Market Intelligence reflects our expertiseand understanding of markets worldwide and ofthe evolving needs of asset managers

To learn more and to schedule a free demo ofGlobal Marketing Intelligence visitwwwbroadridgecomGMI today

For more information please contactlauracohenbroadridgecom

No part of this document may be distributed reproduced or posted without the expresswritten permission of Broadridge Financial Solutions Inc copy2017 Broadridge Financial Solutions Inc Broadridge and the Broadridge logo areregistered trademarks of Broadridge Financial Solutions Inc

FundFile SalesWatch

Global

Market

Intelligence

EUROPEAN FUND MARKET REVIEW

Page 2424

broadridgecom

Page 2324

broadridgecom

2017 EDITION

Global Market Intelligence reflects our expertiseand understanding of markets worldwide and ofthe evolving needs of asset managers

To learn more and to schedule a free demo ofGlobal Marketing Intelligence visitwwwbroadridgecomGMI today

For more information please contactlauracohenbroadridgecom

No part of this document may be distributed reproduced or posted without the expresswritten permission of Broadridge Financial Solutions Inc copy2017 Broadridge Financial Solutions Inc Broadridge and the Broadridge logo areregistered trademarks of Broadridge Financial Solutions Inc

FundFile SalesWatch

Global

Market

Intelligence

EUROPEAN FUND MARKET REVIEW

Page 2424

broadridgecom

2017 EDITION

Global Market Intelligence reflects our expertiseand understanding of markets worldwide and ofthe evolving needs of asset managers

To learn more and to schedule a free demo ofGlobal Marketing Intelligence visitwwwbroadridgecomGMI today

For more information please contactlauracohenbroadridgecom

No part of this document may be distributed reproduced or posted without the expresswritten permission of Broadridge Financial Solutions Inc copy2017 Broadridge Financial Solutions Inc Broadridge and the Broadridge logo areregistered trademarks of Broadridge Financial Solutions Inc

FundFile SalesWatch

Global

Market

Intelligence

EUROPEAN FUND MARKET REVIEW

Page 2424