© 2017 Broadridge 08/03/2017

FundFlash Monthly Snapshot of European Trends Most Recent Record Date Data in EURO as at: Jun 2017

Most Recent Record Date Most Recent Record Date European assets by investment type Jun 2017 net sales of long term funds Passive vs Active overview (€B) in Jun 2017 €78.6 B Net sales Assets

49.1 YTD net sales of long term funds 84% €359.0 B 22.5 22.5 8% 7.0 2010 2011 2012 2013 2014 2015 2016 2017 Asset Growth month on month 7% -0.15% Bond Equity Mixed Assets Active ETF Index Tracking

June in brief More cherries on the cake • Records are again smashed as the industry’s long-term Another month, another bout of gravity-defying demand for European mutual funds. The headline net-sales funds welcome €79bn in new money – though a large chunk total for long-term products hit yet another record high in Broadridge data (since 2001), the enormous is sourced via transfers into three new BlackRock trackers. €79bn inflow harking back to the days of the dotcom boom. But scratch the surface and it becomes clear that three newly launched tracker funds from BlackRock contributed €18bn of the total via the UK market, • But factor in sharp redemptions and the total with their mountainous combined assets likely representative of an institutional transfer from another net result (€45bn) is actually the lowest of the year to date. branch of the asset-management universe. Even so, the remaining flows still formed a mighty €61bn – a near-record in its own right. • The passive share of sales edges up to 38%. Exclude the new BlackRock funds and it sits at a more modest 20%. June’s sales were in many ways a microcosm of the year-to-date picture, with global currency, emerging market, and global corporate bonds continuing to reap some of the healthiest crops of new investment. At • continues its reign as the undisputed sales the other end of the scale, large-cap US equities remained unloved, and were joined this month by their champion so far this year, welcoming an additional €34bn in small-cap equivalent as well as USD corporate investment grade and high yield debt. At present the June. weakening dollar appears to be encouraging a European and cross-border rotation out of pure dollar- denominated securities. This was, arguably, at its clearest in the money market arena, where USD funds • Global equity funds collect the beefiest volumes – again, were among the biggest contributors to an exceptional €27bn of cross-border money market outflows in largely thanks to BlackRock’s launch activity. They are June – their most voluminous since 2008 – exacerbated by a further €10bn cyclical redemption in France. followed by the global currency bond sector, this year’s core But, in the French case, much of the money looks to have been ploughed back into long-term funds. The fund play. €6.2bn of net inflows formed that market’s best result since 2007 as the parliamentary election’s outcome strengthened President Macron’s mandate to reform, sparking a new wave of fund demand. • BlackRock unsurprisingly towers over the group rankings thanks to the sheer size of assets parked in its new offerings, Looking ahead while PIMCO is once more a clear second. At €359bn, year-to-date flows are already close to the record annual total set in 2014, highlighting the astounding pace of business this year. But as the European summer holidays get underway and investors • PIMCO continues to derive its strength primarily from the continue to digest smoke signals from the developed world’s central banks, more measured business GIS Income Fund, which contributes 67% of the group’s net volumes may begin to manifest themselves over the coming months. takings in June.

Flow sentiment Positive net sales vs Cumulative net sales by year (€bn) Negative net sales 399 B

47%

266 B €159 B €168 B

133 B -€94 B -€89 B

0.00 53% May 2017 Jun 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

% of # funds with negative flows Positive Flows 2015 2016 2017 % of # funds with positive flows Negative Flows

Page 1/4 Top Markets by Sales - Latest Month (€bn) Fund Market Assets Previous month Net Sales Latest Net Sales Bottom selling fund Top selling fund International* 3,979 B 50.4 B 45.4 B -0.6 B 4.3 B United Kingdom 1,114 B 2.4 B 18.6 B -0.6 B 9.7 B France 358 B 2.8 B 6.3 B -0.2 B 0.4 B Germany 607 B 2.9 B 2.4 B -0.3 B 0.5 B Italy 455 B 3.2 B 1.5 B -1.5 B 0.6 B Netherlands 85 B 0.6 B 1.3 B -0.2 B 1.3 B

* International market granularity available via SalesWatch. Funds of funds and money market funds are excluded.

European Net Sales by Investment Type (€bn)

33 34 32 29

17 16 15 15 14 13

3 3 1 1

-34 Bnd Eq MM Mix Oth

Apr 2017 May 2017 Jun 2017

Bottom 10 selling sectors - Latest month (€bn) Top 10 Sectors selling sectors - Latest month (€bn)

Eq Global 15.2 B Bnd Targ Mat -0.6 B Bnd Gl Curr 9.0 B Bnd USD CIG -0.6 B Eq UK 4.9 B

Eq Nth Am S/Mid -0.7 B Bnd Em Mkt 3.8 B

Allocation Alt 3.2 B Eq DE -0.7 B Eq Em Mkt 3.2 B

Bnd USD Corp HY -0.7 B Allocation 3.1 B

Bnd Gl Corp 3.0 B Eq UK Inc -1.1 B Mix Cons 2.9 B Eq Nth Am -1.8 B Mix Income 2.9 B

Page 2/4 Top selling groups - Latest month (€bn) Top selling groups - Latest 12 months (€bn) Master Group NAT Assets Net Sales BlackRock 23.2 B BlackRock US 583.6 B 66.6 B PIMCO 6.4 B PIMCO US 119.0 B 33.4 B 5.0 B Amundi FR 160.4 B 22.7 B

UBS 1.9 B Intesa SP IT 173.2 B 19.4 B Vanguard US 116.8 B 17.3 B Aegon -0.0 B 1.9 B

Active Passive

Top 10 Selling Funds - Latest month (€m) Fund Name Fund Investment Type Fund Domicile Net Sales BlackRock ACS 50:50 Global Equity Tracker Equity United Kingdom 9,735 BlackRock ACS UK Equity Tracker Equity United Kingdom 5,373 PIMCO GIS Income Fund Bond Ireland 4,338 BlackRock ACS 60:40 Global Equity Tracker Equity United Kingdom 3,166 AEGON Diversified Equity Fund Equity Netherlands 1,277 PIMCO GIS Global Investment Grade Credit Bond Ireland 859 iShares Core S&P 500 UCITS ETF (USD) Equity Ireland 723 The Jupiter Global Fund - Jupiter Dynamic Bond Bond Luxembourg 629 BNY Mellon Long Term Global Equity Equity United Kingdom 620 M&G Optimal Income Fund Bond United Kingdom 589

Best Sellers by Month (€bn) Fund Name Type Month/Year Net Sales BlackRock ACS 50:50 Global Equity Tracker Eq Jun 2017 9.7 B PIMCO GIS Income Fund Bnd May 2017 4.1 B Apr 2017 3.1 B Mar 2017 4.0 B Feb 2017 2.4 B Jan 2017 1.7 B Perpetual Global Targeted Returns Mix Dec 2016 1.0 B AEGON Euro Credits Bnd Nov 2016 3.5 B Vanguard Investment Series Plc - Vanguard US Treasury Inflation-Protected Securities Bnd Oct 2016 1.2 B PIMCO GIS Income Fund Bnd Sep 2016 1.4 B Nordea 1 - Stable Return Fund Mix Aug 2016 1.8 B Jul 2016 2.0 B

Page 3/4 Historical fund launches & closures Proportion of net sales of the top ten selling funds

78.6 B

50 81 83 65.0 B 81 27.3 B 45 60.4 B 64 56.0 B 53.7 B 56.0 B 13.5 B 62 150 14.3 B 133 142 10.4 B 14.5 B 148 131 129

51.4 B 51.3 B 43.3 B 46.1 B 227 231 43.3 B 41.6 B 210 227 231 194 186 150

Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017

Fund Launches Fund Closures Fund Mergers Rest Top 10 funds' net sales

Fund launches by group - Latest month (€m) Fund Launches: Top Sectors by net sales - Latest month (€m) Master Group # Funds Net Sales Eq Global 13,349 BlackRock 5 18,283

NYL / Candriam 6 455 Eq UK 5,373 Migrosbank 13 329 Eq Em Mkt 697 ANIMA 1 306 Royal London 1 279 Allocation 411

Mix Targ Mat 362 Number of fund launches by region Bnd Em Mkt 302

Europe 131 FF Asset Alloc 238

International 100 Bnd CHF 193

Top fund launches - Latest month (€m)

Fund Name Domicile Investment Type Launch Date Net Sales BlackRock ACS 50:50 Global Equity Tracker GB Equity 2017-06 9,735 BlackRock ACS UK Equity Tracker GB Equity 2017-06 5,373 BlackRock ACS 60:40 Global Equity Tracker GB Equity 2017-06 3,166 Anima Reddito Piu 2022 II IT Mixed Assets 2017-06 306 Royal London Emerging Markets Equity Tracker GB Equity 2017-06 279 Global Evolution Funds Frontier Opportunities LU Bond 2017-06 221 db x-trackers MSCI Emerging Markets Index UCITS ETF (DR) IE Equity 2017-06 204 PrivilEdge - Aberdeen Emerging Market All Cap LU Equity 2017-06 197 Wells Fargo (Lux) Worldwide Fund - Global Low Volatility Equity LU Equity 2017-06 144 Candriam Fund Sedes Sapientiae LU (ex-house) 2017-06 143

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