Broadridge Fundflash Monthly Snapshot of European Trends

Most Recen Most Recen European assets by investment type Feb 2020 net sales of long term funds Passive vs Active overview in Feb 2020 €17.5 B Net sales Assets 9 T 9 T 8 T 8 T 8 T 7 T 7 T 13.8 B 6 T Previous Recor 13.8 B 6 T 81% 5 T Jan 2020 net sales of long term funds €46.6 B 10% 3.2 B Asset Growth month on month 534.4 M 9% 2013 2014 2015 2016 2017 2018 2019 2020 -3.88%

Bond Equity Mixed Assets Active ETF Index Tracking

February in brief Only a taste of what’s to come

• Despite the impact of coronavirus growing in February, net All thoughts of 2020 being a bumper year and a great start to the decade have now evaporated, and the flows into Europe’s fund industry manage to stay in positive extent of that evaporation really hit home in February. Having originated in Asia, Covid-19 became a reality territory, at €17.5bn, but are much weaker than in January, in Europe, and net flows stuttered to €17.5bn. Equities bled, and the rush into bonds showed a clear risk-off and it is highly likely that flows degraded as the month went sentiment taking hold. Year-to-date sales stand at over €60bn, but that will be wiped out in March for sure. on. Given the generally low level of sales, it is perhaps surprising to see all 10 best-selling groups gathering • It seems inevitable that the trend line will take a huge dip in over €1bn of net flows. The top-3 sellers were active managers, as passives had a rare off-month in terms March. of net flows. Vontobel, JPMorgan and PIMCO all hoovered up bond and multi asset flows. With no single group dominating either inflows or outflows in an environment of low overall activity, it was a case of most • Despite the gathering storm, money market flows are groups treading water. negative at -€4.9bn; it is likely this asset class will benefit in the coming months though. Many of the top-selling funds were income products, suggesting that Asian investors may have been making up a significant portion of international flows, as these products have been particularly popular in • Among the core asset classes, bond scoops up the most net APAC. This opens up an interesting view of the future for European groups wondering how long the hard sales in February. Equity is negative as risk is taken off the times will last. If Asian investors continue to see investment opportunities and buy funds, there may be a table, and mixed asset is just above flat. glimmer of hope for cross-border managers among the gathering clouds.

• Bonds dominate the top-selling sectors, although a thematic sector and global equity also make it into the top 10. Looking ahead

• The active/passive mix is interesting and well worth March saw significant falls across all global stock markets, and as the month went on, a level of panic watching. The vast majority of new money is active, rippled through fixed income markets too. The double hit of an oil war between Russia and Saudi Arabia, suggesting those looking for a safe harbour are choosing and Covid-19 going global, meant a perfect storm for investors, leaving few hiding places beyond cash. active managers – time will tell if this decision is maintained Markets, currencies and commodities all became highly volatile for a time. Towards the end of the month, and proves correct things calmed down a little, but this will have done little to aid overall flow numbers. These are expected to be heavily negative across all asset classes outside of money market, which could well be a beneficiary of the chaos, although even this is a headache for managers, with interest rates cut to new lows globally.

European Net Sales by Investment Type (€m)

Investment Type Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Bond 25,232 26,622 18,547 31,750 32,490 26,377 14,307 30,288 14,452 26,219 26,002 22,487 Equity -21,210 -13,609 -19,065 -4,471 -3,191 -24,341 9,722 2,335 21,626 28,000 11,644 -7,050 Mixed -6,171 -3,225 -4,324 -342 -3,952 -1,827 3,038 1,834 6,751 5,996 6,663 1,600 Money Market 1,738 7,456 8,635 -14,575 42,470 44,672 -16,410 -2,085 3,130 -11,510 46,037 -4,749 Rest -2,380 233 2,272 1,030 467 -172 -1,193 1,215 -1,420 -1,422 2,280 504

Page 1/4 Top Markets by Sales - Latest Month (€m)

Combined Type Cross Border Domestic Round Trip Sum Common Country Combined Net Sales Combined Net Sales Combined Net Sales Combined Net Sales Spain 1,698 651 100 2,449 Belgium 290 1,611 370 2,271 Germany -211 1,208 1,270 2,267 Italy 754 32 1,389 2,175 Sweden 526 1,121 -56 1,592

Funds of funds and money market funds are excluded.

Flow sentiment Positive net sales vs Cumulative net sales by year (€bn) Negative net sales 750 B

44%

500 B €167 B €161 B

250 B -€120 B -€144 B

56%

Jan 2020 Feb 2020 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of # funds with negative flows Positive Flows % of # funds with positive flows Negative Flows 2017 2018 2019 2020

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

Allocation -1.2 B Bnd Gbl Curr 4.8 B

Eq Pac ex Jpn -1.2 B Bnd Eur 4.1 B

Bnd Eur Corp HY -1.3 B Bnd Eur Corp IG 3.6 B

Allocation Alt -1.7 B Bnd USD 3.2 B

Float Rate/Loan -1.8 B Mix Bal 1.9 B

Derivatives -1.9 B Eq Global 1.9 B

Eq Euroland -2.6 B Eq IT 1.8 B

Eq Nth Am -3.0 B Real Est 1.8 B

Eq Japan -3.4 B Mix Cons 1.7 B

Eq Egypt Commod 1.6 B

Page 2/4 Top selling groups - Latest month (€bn) Top selling groups - Latest 12 months (€bn)

Master Group NAT Assets Net Sales Vontobel -0.0 B 2.1 B BlackRock US 757.7 B 49.9 B 2.0 B JP Morgan AM 2.0 B PIMCO US 196.6 B 40.8 B PIMCO -0.0 B 1.7 B Credit Suisse CH 176.8 B 20.9 B

Vanguard -0.0 B 1.5 B Vanguard US 180.5 B 20.7 B AB US 90.6 B 17.9 B AB 1.5 B

Active Passive

Top 10 Selling Funds - Latest month (€m)

Fund Name Fund Domicile Investment Type Fund Strategy Net Sales JPMorgan Funds - Income Fund Luxembourg Bond Active 1,770 PIMCO GIS Diversified Income Fund Ireland Bond Active 1,088 GS Global Future Technology Leaders Equity Portfolio Luxembourg Equity Active 1,061 M&G (Lux) Investment Funds FCP - Euro Credit Fund Luxembourg Bond Active 1,036 AB FCP I American Income Portfolio Luxembourg Bond Active 1,019 UBS ETF - MSCI Emerging Markets UCITS ETF Luxembourg Equity Passive 980 Fidelity Funds - European Dynamic Growth Fund Luxembourg Equity Active 874 AZ Fund 1 AZ Bond - Target 2021 Luxembourg Bond Active 642 Eurizon Global Trends 40 - Marzo 2025 Italy Mixed Assets Active 596 Invesco S&P 500 UCITS ETF Ireland Equity Passive 545

Best Sellers by Month (€bn)

Fund Name Fund Domicile Type Month/Year Net Sales JPMorgan Funds - Income Fund Luxembourg Bnd Feb 2020 1.8 B Jan 2020 1.6 B Pictet (CH) Institutional - North-American Equities Tracker (US Tax exempt) Switzerland Eq Dec 2019 2.2 B FP Brunel High Alpha Global Equity United Kingdom Eq Nov 2019 3.2 B State Street Global Advisors Lux SICAV - Global Treasury 1-10 Year Bond Index Fund Luxembourg Bnd Oct 2019 1.4 B UBS ETFs plc - MSCI ACWI SF UCITS ETF Ireland Eq Sep 2019 3.3 B Focused Sicav - US Treasury Bond USD Luxembourg Bnd Aug 2019 6.1 B UBS ETFs plc - MSCI ACWI SF UCITS ETF Ireland Eq Jul 2019 3.7 B PIMCO GIS Income Fund Ireland Bnd Jun 2019 3.5 B ACTIAM (L) Sustainable Euro Fixed Income Fund Luxembourg Bnd May 2019 2.9 B Fundsmith Equity Fund Sicav Luxembourg Eq Apr 2019 2.9 B PIMCO GIS Income Fund Ireland Bnd Mar 2019 1.9 B

Page 3/4 Historical fund launches & closures New launch flows vs existing funds Net sales of the top10 selling funds vs the rest

58.8 B 6.0 €B

46.6 B 208 6.5 €B

144 146 98 52.8 €B

58 40.1 €B 17.5 B 78 7.4 €B 187 138 98 10.2 €B

Dec 2019 Jan 2020 Feb 2020 Dec 2019 Jan 2020 Feb 2020 Dec 2019 Jan 2020 Feb 2020

Fund Closures Fund Mergers Flows into existing funds Rest Fund Launches Flows into newly launched funds 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 Bnd Eur Corp IG 1,381 Azimut 13 1,838

Goldman Sachs 3 1,079 Eq IT 1,062 M&G 2 1,036 Bnd Targ Mat 1,030 Aviva Investors 1 721 Amundi 4 444 Eq Global 804

MM USD 721

Number of fund launches by region Bnd Gbl Curr 421

Mix Bal 317 Europe 80

Mix Targ Mat 289 International 66

Top fund launches - Latest month (€m)

Fund Name Domicile Investment Type Launch Date Net Sales GS Global Future Technology Leaders Equity Portfolio LU Equity 2020-02 1,061 M&G (Lux) Investment Funds FCP - Euro Credit Fund LU Bond 2020-02 1,036 Aviva Investors US Dollar Liquidity Fund IE Money Market 2020-02 721 AZ Fund 1 AZ Bond - Target 2021 LU Bond 2020-02 642 ABN AMRO Funds - Insight Euro Corporate Bonds Duration Hedged LU Bond 2020-02 344 AZ Fund 1 AZ Alternative - Flex LU Mixed Assets 2020-02 317 G.A.-Fund-B Equity Global Growth Core BE Equity 2020-02 260 AZ Fund 1 AZ Bond - ABS LU Bond 2020-02 230 T. Rowe Price Select Investment Series III SICAV - Sustainable Global Growth Equity Fund LU Equity 2020-02 213 AZ Fund 1 AZ Bond - Sustainable Hybrid LU Bond 2020-02 205

Most Recent Record Date Data in EURO as at: Feb 2020 For more information please contact [email protected]

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