etp landscape industry highlights august 2013...2013 july* 2013 december 2012 august 2012 monthly...

ETP LANDSCAPEINDUSTRY HIGHLIGHTS | AUGUST 31, 2013

The opinions expressed are as of August 31st, 2013and may change as subsequent conditions vary.

ONLY FOR ACCREDITED INVESTORS IN CANADAAND PROFESSIONAL INVESTORS IN OTHER REGIONS

ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS [ 2 ]

What’s Inside

Dodd Kittsley, Head of BlackRock ETP Research

For inquiries, contact [email protected]

BlackRock ETP Research Global ETP Overview 3

United States 14

Europe 19

Asia Pacific 24

Canada 29

Latin America 34

Endnotes 36

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About the ETP Landscape: Industry Highlights ReportThe “ETP Landscape: Industry Highlights” provides a summary of ETP assets under management and asset flows at a global level for the most recent month-end period.

Raj SeshadriHead of BlackRock ETP Insights

AUGUST HIGHLIGHTS1

With uncertainty about economic growth and Federal Reserve policy, the Global ETP industry experienced outflows of ($15.0bn) in August, the second month of redemptions this year following very strong asset gathering in July. Similar to June, outflows were driven by Fixed Income with ($5.3bn), including ($8.1bn) from funds with longer/broader maturity profiles vs. inflows for short maturity funds.2

• This is the largest monthly outflow on record for global ETPs. The previous monthly record for global ETP outflows was in January 2010, when the industry witnessed outflows of ($13.4bn).

News that the Eurozone posted its first economic expansion in 18 months3

helped fuel record setting monthly flows of $4.7bn into Pan European Equity ETPs in August.

Overall Equity ETP flows were negative at ($9.4bn) as US exposures lost momentum in August, registering outflows of ($14.5bn). However excluding significant SPY (SPDR S&P 500) redemptions of ($14.0bn), US Equity outflows were modest at ($0.5bn).

Year-to-date Equity ETP flows were $138.5bn, still well ahead of last year’s pace.

In the broader mutual fund space, market uncertainty helped fuel $52bn of flows into Money Market funds, the highest monthly total this year and $21bn higher than last month.4

Continued uncertainty around the timing of the Fed’s tapering, the direction of economic data and potential geopolitical conflict is likely to lead to increased volatility for equity and bond markets in September.5

ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

AUGUST RESULTS AT A GLANCE1

(US $billions)

August2013

July*2013

December2012

August2012

Monthly Flows (15.0) 43.8 38.7 11.6

Assets 2,114 2,164 1,944 1,761

# of ETPs 4,918 4,901 4,759 4,744

*Jul-2013 restated with additional Asia Pacific data

Global Overview

[ 3 ]

GLOBAL 13-MONTH ROLLING FLOWS1

2013 YTD Net Flows: $128.1bn(US$bn)

Highlights (US$):1,2

Global ETP flows in August turned negative to the tune of ($15.0bn), heavily impacted by the Federal Reserve signals on the tapering of bond purchases and the resulting expectation of higher interest rates. The industry has now alternated between strong and weak flows over the past four months as investors continue to digest news which began to shift in late May.

But investors embraced positive economic news in Europe. Pan-European Equity ETP flows hit an all time high of $4.7bn in August, spurred by Eurozone GDP growth of 0.3% in Q2 – the first economic expansion in 18 months.3

Additionally, European single-country funds drew in $1.0bn.

The 10-year Treasury yield hit a 2 year high of 2.89% in August.6 Investors sought shelter from rising interest rates in Short-Maturity Fixed Income ETPs which gathered $2.8bn in August and likewise embraced Money Market mutual funds which drew in $52bn, the highest total this year, and $21bn higher than last month.4

Investors could also be positioning for increased market volatility in September. There are a number of upcoming events and announcements with implications for the global economy including the release of US Non-Farm Payroll numbers ahead of the highly anticipated next meeting of the FOMC, the German elections, meetings of other major Central Banks, US debt ceiling negotiations, and the escalating conflict in Syria.

Equity ETPs generated rare outflows of ($9.4bn). The last such occurrence was in April 2012.

• Equity funds with US exposure saw redemptions of ($14.5bn), although excluding one fund, SPY (SPDR S&P 500), industry outflows were only ($0.5bn). SPY had seen inflows of $13.8bn in July and outflows of ($14.0bn) this month.

• Fed tapering talk also impacted Emerging Markets Equities which saw outflows of ($3.5bn) in August, mostly from Broad Emerging Markets funds and single country funds (Brazil and South Korea).

Fixed Income ETPs registered outflows of ($5.3bn).

• Short maturity funds continued to gather assets at a steady pace with $2.8bn – including Floating Rate flows of $1.0bn – bringing the YTD total to $29.3bn.

• All other maturities experienced outflows of ($8.1bn) for the month and have now shed ($10.4bn) YTD.



Within Fixed Income, Treasury ETPs had the greatest outflows with ($4.3bn) heavily concentrated in a small number of intermediate maturity funds.

Gold ETPs surrendered another ($0.7bn) in August, but the outflows have now slowed for four consecutive months after peaking at ($9.0bn) in April. YTD outflows reached ($31.8bn).

Year-to-date global ETP net inflows fell back below $130bn in August

Year-to-date (YTD) flows are now $128.1bn, behind the previous record high of $139.9bn through August 2012. However, the 2013 composition remains much different with Equity gathering 80% more than last year, Fixed Income just a third as much and Commodity outflows adding a significant drag.

Equity funds led with $138.5 billion which is 80% above last year’s pace of $77.1bn.

US and Japanese Equity exposures account for the bulk of the year-over-year Equity flow growth. Equity markets in both countries have been bolstered by accommodative Central Bank monetary policies.

The growth in year-over-year Equity flows was moderated by EM Equity outflows of ($11.1bn) YTD. The category had seen strong inflows in January of $10.9bn and then shifted to outflows since February, with the exception of a small positive uptick in July.

Short Maturity funds (Floating Rate, Ultra-Short-Term and Short-Term) have been the engine for Fixed Income flows this year, accumulating $29.3bn. Last August, the duration picture was completely different with YTD inflows of $3.9bn for Short Maturity funds.2

Global Overview (cont’d)

[ 4 ]

GLOBAL COMMODITIES CUMULATIVE ETP FLOWS1

2013 YTD Flows: ($31.9bn)

GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS1,2

2013 YTD Flows: $18.9bn

GLOBAL EQUITY CUMULATIVE ETP FLOWS1

2013 YTD Flows: $138.5bn

Null J F M A M J J A

0

50

100 88.1

32.3

29.1

(11.1)


0

20

(10.4)

29.3


-30

-20

-10

0

(0.2)

(31.8)


Year-To-Date OverviewGLOBAL ETP YTD FLOWS BY EXPOSURE1

[ 5 ]

(US$bn)Jan-Aug

2013Jan-Aug

2012Annual 2012

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

0

100

200

300

128.1139.9

262.7

173.5

181.8

YTD Flows in 2013: $128.1bn

GLOBAL ETP CUMULATIVE FLOWS1

YTD 2013 Equity Flows: $138.5bn

CUMULATIVE EQUITY ETP FLOWS1 CUMULATIVE FIXED INCOME ETP FLOWS1

YTD 2013 Fixed Income Flows: $18.9bn


Beyond Raw Flows: Capturing Investor Sentiment

[ 6 ]

To better understand and capture shifts in investor sentiment,we developed the BlackRock Risk Sentiment Measure7

using net inflows into all US-listed ETPs and the daily pricevolatility since 2005. The measure is computed by asset class(e.g., Equity, Fixed Income) and for different time periods(weekly, monthly, etc.) to reflect shifts in risk appetite that areharder to discern from raw flow data.

To compute risk sentiment within a particular asset class, we sort ETPs into two groups, high and low risk, based on their 60-day realized return volatility. For example, currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners while the low risk group includes Large Cap Equities and Preferred Stock ETPs.

Within the Fixed Income, High-Yield Bond funds would fall into the high risk group while Short-Term Treasury funds are in the low risk group.

Risk sentiment is then defined as the total dollar inflows/outflows for the riskier group of ETPs less those of the safer group, scaled by the dispersion in flows across the sample. Zero on the scale below represents the 1-year moving average.

It’s important to note the BlackRock Risk Sentiment Measure considers risk sentiment excluding cash.

Overview7

For US-listed Equity ETPs — which make up 78% of global Equity ETP YTD flows — the BlackRock Equity Risk Sentiment Measure rose to a 10 month high. Risk sentiment was elevated - despite the fact that there were net Equity outflows - because of the higher risk profile of funds with inflows vs. the lower risk profile of those with outflows.

More specifically, investors pulled material amounts from larger funds such as SPY (SPDR S&P500) and QQQ (PowerSharesQQQ Trust) which have lower than average realized return volatility. Flows into funds classified as higher risk were primarily in ETPs offering European and other Non-US Developed Market Equity exposures.

In Fixed Income, flows in August showed a moderately higher risk sentiment level than in recent months which is now on par with the 1-year moving average risk sentiment level.

Background and Methodology

Over longer horizons, our research shows that Risk Sentimentexhibits greater persistence than raw flows alone, consistentwith the idea that the composition of flows is indicative ofinvestor sentiment and growing ETP adoption.

EQUITY RISK FLOW SENTIMENT MEASURE

(60)

(40)

(20)

0

20

40

60

J F M A M J J A S O N D J F M A M J J A

More risk tolerant

More risk averse

FIXED INCOME RISK FLOW SENTIMENT MEASURE

(60)

(40)

(20)

0

20

40

60

J F M A M J J A S O N D J F M A M J J A

Ris

k S

entim

ent

Ris

k S

entim

ent More risk tolerant

More risk averse

Flows By Listing Region

ASSET GROWTH RATES AND # OF ETPs1

LISTING REGION VIEW1

(# ETPs)

$1,488

$377

$56$11

$153

-10

0

10

20

30

40

50

60

-8% -4% 0% 4% 8% 12% 16%

2013

Gro

wth

in #

ET

Ps

2013 AUM Growth

US

Europe

Canada

Asia Pacific

LatinAmerica

Bubble size = Assets ($bn)

Highlights (US$):1

Funds listed in the US account for 70% of global ETP assets

YTD 2013 flows into US-listed products represent 76% of the global total compared to 71% for full-year 2012

ETP assets in the US have grown 10.3% YTD

Asia Pacific has the highest asset growth rate so far this year, followed by the US

Europe has the highest number of products with 2,142

[ 7 ]FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION

By Listing Region

Net Flows

Aug 2013Assets

% AssetMarketShare

Number ofProducts

Aug2013

YTD2013

AUGUST NET FLOWS BY LISTING REGION1


ETP and Mutual Fund Monthly Flows


Developed Equity mutual fund flows have shifted from outflows in 2012 to inflows in 2013. The trend stalled in June, but then resumed in July and August. Year-to-date, mutual funds have drawn in $102.9bn while Developed Equity ETPs attracted inflows of $149.6bn.

Emerging Markets Equity flows were strong in January 2013 for both mutual funds and ETPs. However, they have been on the decline since January for ETPs and March for mutual funds. Mutual funds have gathered $7.2bn YTD while flows into ETPs flows turned negative with ($11.1bn) for the year.

Fixed Income flows had been steady for mutual funds in the first 5 months in 2013. Since June, both mutual funds and ETPs have seen redemptions. Mutual funds have gathered $32.6bn YTD while Fixed Income ETPs drew in $18.9bn.

DEVELOPED MARKETS EQUITY MONTHLY FLOWS1,4 EMERGING MARKETS EQUITY MONTHLY FLOWS1,4

FIXED INCOME MONTHLY FLOWS1,4

(206)

116 102.9

149.6

(250)

(200)

(150)

(100)

(50)

0

50

100

150

200

J F M A M J J A S O N D

14

55

7.2

(11.1)

(20)

(10)

0

10

20

30

40

50

60


[ 8 ]

MF Flows -2012

ETP Flows -2012

MF Flows -2013

ETP Flows -2013435

70 32.6

18.90

50

100

150

200

250

300

350

400

450

500



Largest Year-To-Date Fund Inflows and Outflows

ETPs as of August (US$mn)1 Bloomberg Ticker2013 YTD

InflowsAug-13Assets

ETPs as of August (US$mn)1 Bloomberg Ticker2013 YTDOutflows

Aug-13Assets

[ 9 ]

WisdomTree Japan Hedged Equity Fund DXJ US

iShares MSCI Japan EWJ US

iShares Russell 2000 IWM US

Vanguard Total Stock Market VTI US

Daiwa ETF TOPIX 1305 JP

Vanguard Short-Term Bond BSV US

PowerShares Senior Loan Portfolio BKLN US

Financial Select SPDR XLF US

Vanguard FTSE Developed Markets ETF VEA US

ChinaAMC CSI 300 Index ETF 510330 CH

Grand Total

9,8798,443

10,4654,655

24,3014,451

32,5754,273

8,6324,186

13,2504,114

5,3093,867

14,8903,865

14,8213,249

3,2473,204

137,37044,309


Largest Asset Gathering ETPs Launched in 2013

Product Name (US$mn)1Bloomberg

Ticker ExposureListing Region

Launch Date

Assets as of August 2013

Highlights (US$):1

282 new ETPs and 24 individual share class listings debuted around the globe so far this year and have accumulated $15.2bn in assets.

123 products and 9 individual share class listing were delisted this year with combined assets of less than $1.2bn.

[ 10 ]

5,907


Global ETP Multi-Year Asset Growth and Top 10 Providers

[ 11 ]

79 109 146 218 319 428 598

851 772 1,156

1,483 1,525

1,944 2,114

106 219297 300 357

524

883

15412220

2694

3543

4311

47594918

0

1000

2000

3000

4000

5000

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13

# of ETPsAssets ($bn)

Global ETP Assets & Number of ETPs by Year1

Global ETP Providers Ranked by Assets (US$bn)1

Provider *Aug-2013

Assets% Market

ShareAug-2013 Net Flows

YTD 2013Net Flows # ETPs

2013 YTD Change

Assets% Market

Share

* Providers measured at parent company level.

iShares

State Street

Vanguard

Invesco PowerShares

Deutsche Asset & Wealth M..

Lyxor / Soc Gen

Nomura Group

WisdomTree Investments

ProShares

Van Eck Global

177 Others

Grand Total 0.0

(0.1)

(0.4)

0.2

0.4

0.2

(0.3)

0.0

0.3

1.2

(1.0)

(0.5)

170.1

27.3

(5.3)

5.1

10.7

6.1

(3.6)

5.0

13.5

46.3

8.6

56.5

4,918

2,929

57

141

52

49

203

300

195

100

188

704

128.1

41.5

0.1

5.2

11.4

3.1

(2.4)

0.1

8.6

40.0

(8.4)

28.8

(15.0)

3.6

(0.8)

1.6

(0.5)

1.2

0.1

0.3

(0.7)

4.0

(18.7)

(5.2)

100.0

17.5

1.1

1.2

1.4

1.5

1.8

2.7

4.1

13.9

16.3

38.6

2,114.4

369.7

22.4

26.3

29.0

30.9

38.9

56.3

87.0

292.9

345.2

816.0


ETP Flows by Exposure: Developed Equity

[ 12 ]

US Size and Style

Large Cap (14,555) 20,919 16.3 396,773 18.8 227

Mid Cap 3,423 9,016 7.0 71,393 3.4 49

Small Cap 358 14,402 11.2 76,510 3.6 68

Micro Cap 8 271 0.2 953 0.0 4

Total Market (194) 8,431 6.6 56,322 2.7 63

Extended Market 23 743 0.6 3,168 0.1 2

Preferred Stock (814) (288) (0.2) 13,984 0.7 5

US Size and Style Total (11,751) 53,494 41.8 619,103 29.3 418

US Sector

Basic Materials 156 104 0.1 5,412 0.3 14

Consumer Cyclicals (1,527) 1,694 1.3 13,142 0.6 18

Consumer Non-cyclicals (1,169) (467) (0.4) 8,373 0.4 12

Energy (99) 3,489 2.7 29,835 1.4 42

Financials (1,179) 6,657 5.2 28,279 1.3 37

Health Care 277 3,569 2.8 20,382 1.0 28

Industrials 286 1,960 1.5 9,399 0.4 17

Real Estate (215) 2,187 1.7 28,128 1.3 23

Technology 481 4,502 3.5 20,598 1.0 27

Telecommunications (22) (66) (0.1) 986 0.0 5

Utilities (187) (47) (0.0) 8,245 0.4 12

Theme (21) 298 0.2 1,077 0.1 8

US Sector Total (3,220) 23,880 18.6 173,857 8.2 243

US Strategy 442 10,770 8.4 61,791 2.9 56

US Total (14,528) 88,143 68.8 854,751 40.4 717

Canada Equity (256) (1,128) (0.9) 30,844 1.5 84

North America Regional Equity 104 755 0.6 7,297 0.3 18

North America Total (14,680) 87,770 68.5 892,892 42.2 819

Pan European Size and Style

Large Cap 1,287 1,835 1.4 32,964 1.6 76

Mid Cap 138 169 0.1 916 0.0 8

Small Cap 201 339 0.3 1,800 0.1 13

Total Market 2,648 4,474 3.5 31,394 1.5 68

Pan European Size and Style Total

4,271 6,797 5.3 67,023 3.2 164

Pan European Sector 314 (92) (0.1) 11,451 0.5 154

Pan European Strategy 95 372 0.3 2,787 0.1 20

Pan European Total 4,684 7,097 5.5 81,311 3.8 339

Country

Germany (18) (119) (0.1) 39,619 1.9 61

U.K. 630 2,410 1.9 17,138 0.8 50

Switzerland (92) 203 0.2 9,405 0.4 23

France 80 (718) (0.6) 5,172 0.2 19

Others 416 1,111 0.9 8,601 0.4 66

Europe Single Country Total 1,016 2,889 2.3 79,936 3.8 219

Europe Total 5,700 9,986 7.8 161,247 7.6 558

Asia-PacificRegional (140) 207 0.2 14,734 0.7 57

Country 737 27,959 21.8 120,659 5.7 228

Asia Pacific Total 597 28,166 22.0 135,393 6.4 285

Broad-Based Global /Global ex-US 2,473 23,674 18.5 167,195 7.9 448 Developed Equity Total (5,911) 149,597 116.8 1,356,728 64.2 2,110

Exposure (US$mn)1

August2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs


ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities

[ 13 ]

Broad EMBroad Emerging Markets (1,202) (8,323) (6.5) 113,999 5.4 114

Broad Frontier Markets 67 292 0.2 500 0.0 5

Broad EM Total (1,135) (8,031) (6.3) 114,498 5.4 119

Regional EM (159) (1,853) (1.4) 7,223 0.3 81

EM Single Country

Brazil (547) (3,657) (2.9) 8,101 0.4 47

China 43 (1,995) (1.6) 52,124 2.5 179

India 10 (66) (0.1) 4,425 0.2 54

Russia (85) (382) (0.3) 3,528 0.2 18

South Korea (947) 2,824 2.2 17,500 0.8 110

Mexico 29 1,746 1.4 10,649 0.5 18

Others (749) 275 0.2 17,108 0.8 148

EM Single Country Total (2,245) (1,255) (1.0) 113,436 5.4 574

Emerging Markets Equity Total (3,539) (11,139) (8.7) 235,158 11.1 774

Equity Total (9,449) 138,458 108.1 1,591,886 75.3 2,884

Fixed Income

Broad/Aggregate (429) 351 0.3 41,794 2.0 33

Govt/Corp 1,090 9,945 7.8 30,968 1.5 22

Emerging Markets (73) 193 0.2 18,116 0.9 69

Municipal (339) (191) (0.1) 11,850 0.6 35

Government - Sovereign 569 3,816 3.0 36,986 1.7 254

Government - US Treasury (4,288) 2,690 2.1 35,712 1.7 77

Government Total (3,719) 6,507 5.1 72,698 3.4 331

Inflation (784) (4,596) (3.6) 27,115 1.3 37

High Yield Corporate (960) 673 0.5 38,049 1.8 43

Investment Grade Corporate (886) 1,821 1.4 77,844 3.7 129

Money Market 189 (945) (0.7) 5,267 0.2 20

Mortgage (32) (624) (0.5) 7,641 0.4 7

Others 659 5,751 4.5 10,832 0.5 32

Fixed Income Total (5,283) 18,884 14.7 342,174 16.2 758

Commodities

Broad Market 22 (297) (0.2) 18,073 0.9 120

Agriculture 83 85 0.1 5,224 0.2 202

Energy 212 (1,083) (0.8) 8,319 0.4 216

Industrial Metals (57) (28) (0.0) 2,033 0.1 123

Precious Metals - Gold (687) (31,753) (24.8) 87,658 4.1 120

Precious Metals - Silver 356 1,133 0.9 14,231 0.7 70

Precious Metals - Others (56) 12 0.0 5,006 0.2 84

Precious Metals - Total (388) (30,608) (23.9) 106,895 5.1 274

Commodities Total (128) (31,932) (24.9) 140,545 6.6 935

Alternatives Volatility (32) 1,519 1.2 3,356 0.2 47

Others (19) (82) (0.1) 2,618 0.1 77

Alternatives Total (51) 1,437 1.1 5,974 0.3 124

Asset Allocation (9) 1,336 1.0 4,145 0.2 73

Currency (81) (130) (0.1) 4,709 0.2 144

Israel ETP - - - 25,010 1.2 -

Global ETP Total (15,001) 128,053 100.0 2,114,443 100.0 4,918

Exposure (US$mn)1

August2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

United States ETPs



US ETP Multi-Year Asset Growth and Top 10 Providers

[ 15 ]

US ETP Assets & Number of ETPs by Year1

US ETP Providers Ranked by Assets (US$bn)1

Provider *Aug-2013

Assets% Market



2013 YTD Change

Assets% Market

Share


71 88 106 157 237 314

433 621 542

794 1,012 1,062

1,350 1,488

95 118130 134 169

221

381

673

844925

1099

13701445

1504

0

200

400

600

800

1000

1200

1400

1600

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13


iShares

State Street

Vanguard

Invesco PowerShares

WisdomTree Investments

ProShares

Van Eck Global

Guggenheim

First Trust Portfolios

BNY Mellon

42 other US providers

Grand Total 0.0

1.1

0.1

0.3

0.2

(0.5)

0.2

0.6

0.4

1.3

(1.8)

(1.8)

138.6

22.2

2.7

5.6

4.2

(5.3)

5.1

10.7

12.8

44.5

5.9

30.2

1,504

459

1

79

69

57

141

52

162

67

122

295

97.5

21.8

1.0

4.2

3.3

0.1

5.2

11.4

8.0

37.7

(11.5)

16.3

(17.5)

2.0

(0.5)

0.6

0.4

(0.8)

1.6

(0.5)

(0.8)

3.8

(19.0)

(4.3)

100.0

5.4

0.9

0.9

1.1

1.5

1.8

1.9

5.6

19.5

21.8

39.5

1,488.2

80.6

13.3

13.8

16.5

22.4

26.3

29.0

83.9

289.8

324.5

588.2


US ETPs Ranked by Year-To-Date Inflows and Outflows


InflowsAug-13Assets


Aug-13Assets

[ 16 ]

WisdomTree Japan Hedged Equity Fund DXJ US

iShares MSCI Japan EWJ US

iShares Russell 2000 IWM US

Vanguard Total Stock Market VTI US

Vanguard Short-Term Bond BSV US

PowerShares Senior Loan Portfolio BKLN US

Financial Select SPDR XLF US

Vanguard FTSE Developed Markets ETF VEA US

iShares Core S&P Mid-Cap IJH US

Vanguard S&P 500 VOO US

Grand Total

9,8798,443

10,4654,655

24,3014,451

32,5754,273

13,2504,114

5,3093,867

14,8903,865

14,8213,249

18,7983,115

10,7863,084

155,07443,117


US ETP Flows by Exposure: Equity

[ 17 ]

US Size and Style

Large Cap

Broad-based (15,307.3) 6,326.0 6.5 281,119.0 18.9 70

Growth 517.7 2,347.6 2.4 43,646.8 2.9 18

Value (29.7) 5,660.2 5.8 39,340.6 2.6 20

High Dividend Yield (15.5) 491.5 0.5 1,979.5 0.1 2

Risk-adjusted - 14.0 0.0 23.4 0.0 3

US Large Cap Total (14,834.8) 14,839.3 15.2 366,109.4 24.6 113

Mid Cap 3,480.5 8,859.2 9.1 71,013.5 4.8 45

Small Cap 222.5 13,672.5 14.0 74,613.2 5.0 57

Micro Cap 8.0 271.4 0.3 952.6 0.1 4

Total Market 53.2 7,581.1 7.8 46,858.7 3.1 33

Extended Market 22.9 742.7 0.8 3,167.9 0.2 2

Preferred Stock (813.5) (288.2) (0.3) 13,984.2 0.9 5

US Size and Style Total (11,861.3) 45,678.1 46.9 576,699.5 38.8 259

US Sector

Basic Materials 159.8 103.7 0.1 5,403.8 0.4 12

Consumer Cyclicals (1,513.9) 1,680.0 1.7 13,107.6 0.9 16

Consumer Non-cyclicals (1,164.6) (462.9) (0.5) 8,360.0 0.6 10

Energy (99.5) 3,316.0 3.4 29,644.5 2.0 38

Financials (1,194.9) 6,296.5 6.5 27,683.3 1.9 34

Health Care 270.4 3,515.8 3.6 20,286.2 1.4 23

Industrials 289.9 1,913.7 2.0 9,318.2 0.6 15

Real Estate (230.4) 1,895.6 1.9 27,446.9 1.8 19

Technology 481.3 4,416.7 4.5 20,462.9 1.4 25

Telecommunications (22.4) (65.5) (0.1) 985.6 0.1 5

Utilities (186.9) (48.6) (0.0) 8,237.0 0.6 10

Theme (18.3) 300.9 0.3 1,072.1 0.1 3

US Sector Total (3,229.5) 22,861.9 23.5 172,008.2 11.6 210

US Strategy 407.8 9,742.0 10.0 59,512.2 4.0 42

US Equity Total (14,682.9) 78,282.0 80.3 808,219.9 54.3 511

Developed International Equity

Global (221.4) 8,062.1 8.3 43,594.2 2.9 110

Global Ex-U.S. 2,772.6 11,906.4 12.2 96,903.2 6.5 87

North America 102.7 (583.5) (0.6) 7,696.1 0.5 15

Europe 4,729.2 9,840.4 10.1 28,675.4 1.9 38

Asia-Pacific (1,822.7) 12,058.8 12.4 34,774.6 2.3 42

Middle East & Africa (9.4) 9.9 0.0 91.5 0.0 2

Developed International Total 5,550.9 41,294.0 42.4 211,735.0 14.2 294

Emerging Markets Equity

Broad (986.1) (5,764.9) (5.9) 99,265.6 6.7 63

Regional (56.9) (657.2) (0.7) 2,884.6 0.2 23

Country (697.9) (4,634.6) (4.8) 30,378.3 2.0 89

EM Equity Total (1,741.0) (11,056.6) (11.3) 132,528.5 8.9 175

Equity Total (10,872.9) 108,519.4 111.3 1,152,483.3 77.4 980

Exposure (US$mn)1

August2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs


US ETP Flows by Exposure: Fixed Income, Commodities & Others

[ 18 ]

Fixed Income

Broad/Aggregate (320.8) 278.7 0.3 37,179.1 2.5 14

Govt/Corp 934.0 8,777.2 9.0 27,059.1 1.8 12

Emerging Markets (516.2) (2,302.7) (2.4) 9,539.4 0.6 16

Investment Grade Corporate (958.7) 291.7 0.3 52,985.6 3.6 43

High Yield Corporate (1,044.3) (373.6) (0.4) 31,095.0 2.1 24

Municipals (322.8) (416.8) (0.4) 11,640.8 0.8 32

Sovereign 77.5 147.7 0.2 2,947.3 0.2 16

U.S. Government (4,533.3) 2,040.5 2.1 32,896.7 2.2 50

Inflation (559.3) (4,187.1) (4.3) 22,152.7 1.5 16

Mortgage (1.1) (498.4) (0.5) 6,147.8 0.4 4

Others 589.5 4,974.4 5.1 7,533.5 0.5 7

Fixed Income Total (6,655.5) 8,731.5 9.0 241,177.0 16.2 234

Commodities

Broad Market 162.5 361.7 0.4 11,902.3 0.8 23

Agriculture (1.1) 27.6 0.0 2,395.9 0.2 34

Energy 159.7 (997.3) (1.0) 4,282.3 0.3 35

Industrial Metals 1.0 (16.7) (0.0) 452.9 0.0 20

Precious Metals Gold (240.8) (22,485.9) (23.1) 51,653.1 3.5 15

Silver 160.1 768.7 0.8 9,516.2 0.6 9

Other (105.6) 84.6 0.1 1,950.8 0.1 12

Precious Metals Total (186.4) (21,632.6) (22.2) 63,120.1 4.2 36

Commodities Total 135.7 (22,257.3) (22.8) 82,153.5 5.5 148

Currency (105.3) (254.6) (0.3) 4,056.0 0.3 36

Alternatives

Volatility (32.6) 1,388.2 1.4 2,932.0 0.2 16

Others 29.0 94.2 0.1 1,792.8 0.1 52

Alternatives Total (3.5) 1,482.4 1.5 4,724.8 0.3 68

Asset Allocation (7.0) 1,260.8 1.3 3,656.4 0.2 38

US ETP Total (17,508.6) 97,482.1 100.0 1,488,251.0 100.0 1,504

Exposure (US$mn)1

August2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Europe ETPs



Europe ETP Multi-Year Asset Growth and Top 10 Providers

[ 20 ]

Europe ETP Assets & Number of ETPs by Year1

Europe ETP Providers Ranked by Assets (US$bn)1


20 35 56 92

133 150

243 315

299 367 377

671 118 104

115167

305

503 854

1108

1593 18932105

2142

0

400

800

1200

1600

2000

2400

$0

$50

$100

$150

$200

$250

$300

$350

$400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13


Provider *Aug-2013

Assets% Market



2013 YTD Change

Assets% Market

Share

iShares

Deutsche Asset & Wealth Management (db x-trackers)

Lyxor / Soc Gen

ETF Securities

UBS

Source Holdings

Amundi

ZKB

State Street

Commerzbank

32 other providers in Europe

Grand Total

(4.9)

0.0

0.0

0.7

(1.4)

0.3

0.1

0.2

(1.9)

(1.2)

0.9

7.2

(17.4)

9.2

0.1

2.8

(4.8)

1.3

0.8

1.0

(6.5)

(3.6)

4.7

30.8

336

2,142

263

51

9

102

94

270

306

198

245

268

(0.6)

7.8

(0.3)

2.7

(2.2)

0.6

0.9

1.0

(3.3)

(2.3)

(0.3)

11.6

0.1

0.7

0.0

0.4

(0.1)

0.1

0.3

(0.2)

(0.1)

0.1

0.3

(0.2)

7.2

100.0

1.8

1.9

3.0

3.4

3.7

4.0

4.7

10.3

14.6

45.3

27.2

376.7

6.6

7.0

11.4

13.0

14.1

15.2

17.7

38.7

55.0

170.8


Europe ETPs Ranked by YTD Inflows and Outflows


InflowsAug-13Assets


Aug-13Assets

[ 21 ]

* Representing aggregate AUM attributed from all individual share classes. Flows are attributed per share class.

iShares S&P 500 UCITS ETF (Inc) IUSA LN

iShares MSCI Japan EUR Hedged UCITS ETF IJPE LN

PIMCO Euro Enhanced Short Maturity Source ETF PJS1 GY

iShares Euro Government Bond 3-5yr UCITS ETF IBGX LN

Vanguard S&P 500 UCITS ETF VUSA LN

iShares MSCI World UCITS ETF (Inc) IWRD LN

PIMCO US Dollar Short Maturity Source ETF MINT LN

iShares Euro Corporate Bond UCITS ETF IEBC LN

SPDR S&P US DVD ARISTOCRATS SPYD GY

iShares STOXX Europe 600 (DE) SXXPIEX GY

Grand Total

14,1922,100

2,6931,777

1,332925

1,599874

966857

6,146770

1,342742

2,999614

1,340556

3,100539

35,7089,753

ETFS Physical Gold PHAU LN

iShares MSCI Emerging Markets UCITS ETF (Inc) IEEM LN

Physical Gold Source P-ETC SGLD LN

GBS Bullion Securities GBS LN

ZKB Gold ETF (CHF) ZGLD SW

db x-trackers II EONIA Total Return Index ETF XEON GY

db x-trackers MSCI Emerging Market TRN Index ETF XMEM GY

ZKB Gold ETF (USD) ZGLDUS SW

db x-trackers MSCI EM Asia TRN Index XMAS GY

Lyxor ETF Euro Cash (EONIA) CSH FP

Grand Total

5,285(1,923)

4,913(1,381)

1,989(1,350)

5,025(1,219)

3,911(738)

904(714)

3,723(702)

1,924(674)

1,124(589)

896(522)

29,692(9,811)

Share Class of ZGLD SW

6,790*

935*

30,680


European ETP Flows by Exposure: Equity

[ 22 ]

Exposure (US$mn)1

August 2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Pan-European Size and Style

Large Cap 119.6 (937.6) (12.1) 27,572.1 7.3 63

Mid Cap 138.1 168.8 2.2 915.9 0.2 8

Small Cap 163.2 278.8 3.6 1,700.3 0.5 12

Total Market 137.6 324.2 4.2 19,486.0 5.2 60

Size and Style Total 558.5 (165.7) (2.1) 49,674.4 13.2 143

Pan European Sector

Basic Materials 42.1 54.4 0.7 966.5 0.3 13

Consumer Cyclicals 30.9 77.9 1.0 644.7 0.2 21

Consumer Non-cyclicals (21.2) (33.4) (0.4) 646.6 0.2 10

Energy 33.0 (39.2) (0.5) 621.4 0.2 10

Financials 161.6 (18.2) (0.2) 3,427.6 0.9 24

Health Care (12.2) 107.4 1.4 1,129.3 0.3 11

Industrials (26.0) (129.8) (1.7) 653.7 0.2 19

Real Estate (61.7) (187.8) (2.4) 1,855.6 0.5 10

Technology (9.2) (47.7) (0.6) 256.8 0.1 9

Telecommunications 67.8 (76.3) (1.0) 402.1 0.1 9

Utilities 2.4 30.3 0.4 388.5 0.1 8

Theme 10.0 16.6 0.2 258.9 0.1 7

Sector Total 217.6 (245.8) (3.2) 11,251.9 3.0 151

Pan European Strategy 89.2 336.7 4.3 2,734.1 0.7 16

Pan European Total 865.3 (74.8) (1.0) 63,660.3 16.9 310

Europe Single Country

Germany (300.1) (677.0) (8.7) 34,924.7 9.3 50

U.K. 300.9 1,179.9 15.2 14,360.7 3.8 43

Switzerland (66.8) 58.4 0.8 8,482.7 2.3 21

France 18.7 (760.9) (9.8) 4,645.0 1.2 16

Sweden (31.0) 89.8 1.2 2,515.8 0.7 12

Italy 167.2 371.8 4.8 2,593.2 0.7 13

Others 16.7 (41.5) (0.5) 1,338.6 0.4 29

Single Country Total 105.5 220.5 2.8 68,860.7 18.3 184

Europe Equity Total 970.8 145.7 1.9 132,521.1 35.2 494

North America (43.1) 8,361.1 107.5 44,972.1 11.9 141

Asia-Pacific (427.9) 3,900.6 50.2 18,745.2 5.0 88

Global (169.2) 3,175.0 40.8 22,567.4 6.0 114

Developed Equity Total 330.7 15,582.4 200.4 218,805.8 58.1 837

Emerging Markets Equity

Broad (139.1) (2,321.8) (29.9) 14,634.0 3.9 44

Regional (93.0) (1,242.3) (16.0) 4,100.9 1.1 41

Country (97.1) (1,037.6) (13.3) 11,135.7 3.0 102

EM Equity Total (329.2) (4,601.7) (59.2) 29,870.6 7.9 187

Equity Total 1.5 10,980.7 141.2 248,676.5 66.0 1,024


European ETP Flows by Exposure: Fixed Income, Commodities & Others

[ 23 ]

Exposure (US$mn)1

August 2013

Net Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Fixed Income

Broad/Aggregate 3.1 273.7 3.5 1,371.0 0.4 6

Govt/Corp 122.4 1,006.1 12.9 1,503.2 0.4 4

Emerging Markets (145.0) 906.2 11.7 4,583.3 1.2 16

Government Sovereign 533.6 3,188.8 41.0 27,282.1 7.2 162

U.S. Government 245.0 649.6 8.4 2,805.7 0.7 26

Government Total 778.6 3,838.4 49.4 30,087.8 8.0 188

High Yield Corporate 70.5 760.6 9.8 4,398.0 1.2 9

Inflation (210.5) (273.3) (3.5) 4,478.5 1.2 17

Investment Grade Corporate 159.5 536.2 6.9 18,726.6 5.0 34

Money Market 196.5 (1,018.0) (13.1) 5,134.6 1.4 16

Mortgage (30.8) (126.0) (1.6) 1,493.1 0.4 3

Others 37.1 544.3 7.0 2,378.7 0.6 18

Fixed Income Total 981.4 6,448.2 82.9 74,154.7 19.7 311

Commodities

Broad Market (139.7) (642.3) (8.3) 6,109.5 1.6 90

Agriculture 84.5 55.4 0.7 2,799.0 0.7 160

Energy 51.1 (78.9) (1.0) 3,402.1 0.9 158

Industrial Metals (58.4) (11.5) (0.1) 1,554.7 0.4 95

Precious Metals

Gold (421.7) (9,197.4) (118.3) 30,904.7 8.2 64

Silver 191.6 347.9 4.5 4,397.8 1.2 49

Other 49.5 (68.9) (0.9) 2,994.5 0.8 60

Precious Metals Total (180.7) (8,918.4) (114.7) 38,297.0 10.2 173

Commodities Total (243.1) (9,595.7) (123.4) 52,162.3 13.8 676

Alternatives

Volatility (5.1) 48.4 0.6 277.5 0.1 23

Others (48.3) (175.6) (2.3) 764.5 0.2 17

Alternatives Total (53.4) (127.2) (1.6) 1,042.0 0.3 40

Asset Allocation - 23.2 0.3 173.2 0.0 3

Currency 10.9 46.4 0.6 455.3 0.1 88

Europe ETP Total 697.3 7,775.6 100.0 376,664.0 100.0 2,142

Asia Pacific ETPs



Asia Pacific ETP Multi-Year Asset Growth and Top 10 Providers

[ 25 ]

Asia Pacific ETP Assets & Number of ETPs by Year1

Asia Pacific ETP Providers Ranked by Assets (US$bn)1


Provider *Aug-2013

Assets% Market



2013 YTD Change

Assets% Market

Share

10 25 34 39 42 53 61

52 64

87 93

137 153

12

2938

4245

6287

173217

312

432

542

591

0

100

200

300

400

500

600

$0

$20

$40

$60

$80

$100

$120

$140

$160

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13


Nomura Group

Daiwa Securities Group

State Street

Nikko Asset Management

iShares

China AMC

Samsung Group

HSBC

Harvest Fund Management

Yuanta Financial Holdings

83 other providers in Asia Pacific

Grand Total 0.0

(3.4)

(0.6)

(1.6)

(0.2)

0.4

1.3

(1.3)

0.8

(1.1)

3.7

2.1

16.0

(1.1)

(0.3)

(1.7)

0.5

1.5

2.7

(0.9)

2.6

(0.1)

6.7

6.1

591

388

11

5

9

29

11

28

24

15

22

49

17.8

1.9

(0.2)

(1.2)

1.1

2.2

3.2

0.3

1.3

0.4

5.7

3.1

2.3

0.6

0.0

0.0

(0.1)

(0.2)

0.0

0.0

0.6

(0.1)

0.4

1.2

100.0

22.2

2.8

3.5

5.2

5.9

5.8

5.7

9.5

9.0

10.3

20.2

152.8

33.9

4.3

5.4

8.0

9.0

8.8

8.7

14.5

13.7

15.7

30.9


Asia Pacific ETPs Ranked by YTD Inflows and Outflows


InflowsAug-13Assets


Aug-13Assets

[ 26 ]

Daiwa ETF TOPIX 1305 JP

ChinaAMC CSI 300 Index ETF 510330 CH

Samsung KODEX Leverage ETF 122630 KS

Daiwa ETF NIKKEI 225 1320 JP

NIKKEI 225 ETF 1321 JP

NEXT FUNDS Nikkei 225 Leveraged 1570 JP

Hang Seng H-Share Index ETF 2828 HK

SHANGHAI SSE180 ETF 510180 CH

China Southern Kaiyuan CSI 300 Index ETF 159925 CH

China AMC SSE 50 510050 CH

Grand Total

8,6324,186

3,2473,204

2,6121,674

6,9501,512

14,7011,349

1,151887

2,914875

1,981727

528657

3,232624

45,94815,696

HARVEST Shanghai & Shenzhen 300 159919 CH

E Fund CSI 100 A-Share ETF 83100 HK

Huatai-Pinebridge CSI 300 510300 CH

E Fund SZSE 100 159901 CH

China AMC CSI 300 83188 HK

Yuanta/P-shares Taiwan Top 50 ETF 0050 TT

iShares FTSE A50 China 2823 HK

China SME ETF 159902 CH

Harvest MSCI China A Index ETF 83118 HK

SPDR S&P/ASX 200 Fund STW AU

Grand Total

4,725(1,422)

301(1,306)

2,359(1,232)

2,256(757)

1,545(585)

2,820(430)

6,409(284)

489(272)

219(151)

1,935(145)

23,058(6,583)


Asia Pacific ETP Flows by Exposure: Equity

[ 27 ]

Exposure (US$mn)1

Aug2013

Net Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Asia Pacific Regional Equity (1.4) 27.2 0.2 220.0 0.1 9

Japan Equity

Size and Style

Large Cap 2,081.7 5,410.2 30.4 34,621.9 22.7 25

Mid Cap - - - 10.2 0.0 1

Small Cap 0.0 0.0 0.0 49.8 0.0 2

Total Market 639.3 5,365.9 30.2 28,754.8 18.8 9

Size and Style Total 2,721.0 10,776.1 60.6 63,436.8 41.5 37

Sector 215.0 704.8 4.0 1,612.3 1.1 38

Strategy 19.8 158.3 0.9 186.3 0.1 2

Japan Equity Total 2,955.8 11,639.2 65.5 65,235.4 42.7 77

Australia 40.4 215.1 1.2 3,756.4 2.5 27

Hong Kong (148.9) 291.7 1.6 12,018.1 7.9 17

New Zealand 1.7 2.9 0.0 159.8 0.1 3

Singapore - (11.4) (0.1) 397.2 0.3 4

Developed Asia Pacific Single Country Total 2,848.9 12,137.6 68.3 81,566.9 53.4 128

Asia Pacific Equity Total 2,847.5 12,164.9 68.4 81,786.9 53.5 137

Other Developed Equity (Europe, North America, Global and Global ex-US) 33.8 (29.7) (0.2) 365.4 0.2 20

Developed Equity Total 2,881.3 12,135.1 68.3 82,152.3 53.8 157

Broad Emerging Markets Equity - (25.7) (0.1) 72.4 0.0 1

Regional Emerging Markets Equity (2.2) 82.1 0.5 78.8 0.1 9

China Equity

Size and Style

Large Cap 108.1 3,769.8 21.2 24,706.3 16.2 55

Mid Cap - (102.9) (0.6) 157.8 0.1 4

Small Cap - (22.2) (0.1) 112.0 0.1 3

Total Market (8.7) (2,793.0) (15.7) 14,506.7 9.5 22

Size and Style Total 99.4 851.7 4.8 39,482.8 25.8 84

Sector (5.1) 275.1 1.5 975.8 0.6 30

Strategy - (48.7) (0.3) 323.2 0.2 2

China Equity Total 94.4 1,078.1 6.1 40,781.7 26.7 116

South Korea Equity

Size and Style

Large Cap (550.4) 660.3 3.7 4,567.7 3.0 46

Mid Cap - (2.0) (0.0) 11.3 0.0 2

Small Cap - - - 10.9 0.0 1

Total Market (405.0) 1,837.5 10.3 7,906.0 5.2 13

Size and Style Total (955.4) 2,495.8 14.0 12,495.9 8.2 62

Sector 3.4 22.8 0.1 465.2 0.3 32

Strategy 1.2 (14.3) (0.1) 118.4 0.1 5

South Korea Equity Total (950.7) 2,504.4 14.1 13,079.5 8.6 99

Other EM Single Country Equity (371.3) (226.5) (1.3) 5,108.8 3.3 83

EM Single Country Equity Total (1,227.7) 3,355.9 18.9 58,970.1 38.6 298

Emerging Markets Equity Total (1,229.9) 3,412.3 19.2 59,121.3 38.7 308

Equity Total 1,651.4 15,547.4 87.5 141,273.7 92.5 465


Asia Pacific ETP Flows by Exposure: Fixed Income, Commodities & Other

[ 28 ]

Exposure (US$mn)1

Aug2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Fixed Income

Broad/Aggregate 0.4 28.2 0.2 479.2 0.3 4

Emerging Markets 594.9 1,490.6 8.4 3,255.9 2.1 25

Government 60.5 476.6 2.7 4,154.9 2.7 12

High Yield Corporate 38.4 72.7 0.4 92.4 0.1 2

Inflation - - - 9.0 0.0 1

Investment Grade Corporate - 17.7 0.1 41.9 0.0 2

Money Market - 24.0 0.1 32.2 0.0 3

Fixed Income Total 694.3 2,109.7 11.9 8,065.5 5.3 49

Commodities

Broad Market - - - 3.1 0.0 2

Agriculture - 0.5 0.0 23.1 0.0 6

Energy - (25.0) (0.1) 51.0 0.0 9

Industrial Metals - 0.9 0.0 18.1 0.0 5

Precious Metals

Gold (24.8) 13.5 0.1 2,821.7 1.8 32

Silver 1.9 21.3 0.1 131.5 0.1 4

Other 0.0 (4.2) (0.0) 56.7 0.0 8

Total (23.0) 30.6 0.2 3,010.0 2.0 44

Commodities Total (23.0) 7.1 0.0 3,105.1 2.0 66

AlternativesVolatility 5.2 54.6 0.3 119.8 0.1 3

Alternatives Total 5.2 54.6 0.3 119.8 0.1 3

Asset Allocation 6.2 7.9 0.0 46.8 0.0 3

Currency 12.3 51.7 0.3 150.6 0.1 5

Asia Pacific ETP Total 2,346.5 17,778.5 100.0 152,761.6 100.0 591

Canada ETPs



Canada ETP Multi-Year Asset Growth and Top 10 Providers

[ 30 ]

Canada ETP Assets & Number of ETPs by Year1

Canada ETP Providers Ranked by Assets (US$bn)1


Provider *Aug-2013

Assets% Market



2013 YTD Change

Assets% Market

Share

3 3 6 7 11 13 18

16

29

38 42

56 56

14 1516 16 20

25

4576

109

157

227

272287

0

50

100

150

200

250

300

$0

$20

$40

$60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13



Canada ETPs Ranked by YTD Inflows and Outflows


InflowsAug-13Assets


Aug-13Assets

[ 31 ]

* Representing aggregate AUM attributed from all individual share classes. Flows are attributed per share class.

BMO S&P/TSX Laddered Preferred Share Index ETF ZPR CN

BMO S&P 500 ETF ZSP CN

Horizons BetaPro S&P/TSX 60 Index ETF HXT CN

BMO Mid-Term US IG Corporate Bond Index ETF ZIC CN

BMO International Equity Hedged to CAD Index ETF ZDM CN

BMO Mid-Term US IG Corporate Bond Hedged to CAD Ind.. ZMU CN

iShares 1-5 Yr Laddered Corporate Bond CBO CN

PowerShares Ultra DLUX Long Term Government Bond Ind.. PGL CN

iShares S&P US Dividend Growers (CAD-Hedged) CUD CN

Horizons BetaPro NYMEX Natural Gas Bear Plus HND CN

Grand Total

780825

627616

914466

359377

440282

221233

1,588220

595208

313200

200167

6,0383,593

666*

362*

1,705*

344*

6,227

iShares S&P/TSX 60 XIU CN

BMO Dow Jones Canada Titans 60 Index ETF ZCN CN

iShares DEX Universe Bond XBB CN

iShares S&P/TSX Energy XEG CN

iShares DEX All Corporate Bond XCB CN

BMO Short Federal Bond Index ETF ZFS CN

iShares DEX Real Return Bond XRB CN

iShares S&P/TSX Capped Composite XIC CN

Horizons BetaPro NYMEX Natural Gas Bull Plus HNU CN

iShares Gold Bullion CGL CN

Grand Total

10,413(1,712)

898(508)

1,606(230)

676(194)

1,658(182)

217(175)

449(138)

1,196(105)

88(93)

364(91)

17,565(3,429)

408*

17,609


Canada ETP Flows by Exposure

[ 32 ]

Exposure (US$mn)1

August2013 Net

Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

North America Regional Equity (4.4) 37.2 0.9 321.6 0.6 6

Canada

Size and Style

Large Cap (212.9) (1,776.9) (45.1) 12,501.4 22.2 13 Small Cap 1.4 4.1 0.1 123.7 0.2 1 Total Market (85.9) 54.1 1.4 2,104.7 3.7 10 Preferred Stock (56.0) 1,047.0 26.6 2,435.7 4.3 4 Size and Style Total (353.4) (671.7) (17.1) 17,165.6 30.5 28 Basic Materials 2.2 (14.1) (0.4) 140.5 0.2 2 Consumer Non-cyclicals (2.8) 16.4 0.4 27.6 0.0 1 Energy 46.5 (197.0) (5.0) 778.1 1.4 6 Financials 69.8 82.2 2.1 3,247.2 5.8 11 Industrials - 3.3 0.1 8.5 0.0 1

Sector

Real Estate 9.7 128.5 3.3 1,517.5 2.7 3 Technology (1.6) (5.2) (0.1) 27.3 0.0 1 Utilities (6.8) 18.6 0.5 341.6 0.6 2 Theme - 1.8 0.0 19.1 0.0 1 Sector Total 117.1 34.5 0.9 6,107.3 10.8 28

Strategy 3.7 421.8 10.7 3,021.2 5.4 12 Canada Equity Total (232.6) (215.4) (5.5) 26,294.1 46.7 68

U.S. 153.9 1,856.2 47.1 5,174.6 9.2 37 North America Equity Total (83.1) 1,678.0 42.6 31,790.3 56.4 111 Other Developed Equity (Asia Pac, Global and Global ex-US) 92.5 625.0 15.9 3,732.0 6.6 34 Developed Equity Total 9.4 2,302.9 58.5 35,522.3 63.1 145 EM Equity Total (18.9) 48.5 1.2 774.1 1.4 18 Equity Total (9.4) 2,351.5 59.7 36,296.4 64.4 163

Fixed Income

Broad/Aggregate (111.6) (229.8) (5.8) 2,765.1 4.9 7 Govt/Corp 33.6 161.8 4.1 2,406.2 4.3 5 Emerging Markets (10.1) 78.6 2.0 277.5 0.5 3 Municipal (16.2) 225.5 5.7 208.7 0.4 3 Government (102.3) 3.5 0.1 2,611.3 4.6 13 Inflation (13.9) (135.9) (3.5) 474.6 0.8 2 High Yield Corporate (24.2) 213.6 5.4 2,463.6 4.4 7 Investment Grade Corporate (86.6) 975.5 24.8 6,090.0 10.8 27 Money Market (7.2) 48.7 1.2 100.7 0.2 1 Others 32.6 232.7 5.9 919.8 1.6 7 Fixed Income Total (306.1) 1,574.1 40.0 18,317.7 32.5 75

Commodities

Broad Market (1.1) (16.4) (0.4) 58.3 0.1 2 Agriculture - 1.2 0.0 6.4 0.0 1 Energy 1.5 18.1 0.5 584.0 1.0 10 Industrial Metals - (0.9) (0.0) 7.0 0.0 3

Precious Metals

Gold - (83.3) (2.1) 455.1 0.8 4 Silver 2.4 (4.8) (0.1) 185.6 0.3 5 Other - - - 4.1 0.0 1 Precious Metal Total 2.4 (88.1) (2.2) 644.7 1.1 10

Commodities Total 2.8 (86.0) (2.2) 1,300.5 2.3 26

Alternatives

Volatility - 28.3 0.7 27.0 0.0 5 Others 0.5 (0.9) (0.0) 60.2 0.1 8 Alternatives Total 0.5 27.4 0.7 87.2 0.2 13

Asset Allocation (8.0) 44.2 1.1 268.2 0.5 8 Currency 1.0 26.0 0.7 47.4 0.1 2 Canada ETP Total (319.2) 3,937.2 100.0 56,317.4 100.0 287

Latin America ETPs



Latin America ETP Multi-Year Asset Growth, Top Providers and Flows by Exposure

[ 34 ]

Latin America ETP Assets & Number of ETPs by Year1

Latin America ETP Providers Ranked by Assets (US$bn)1


Provider *Aug-2013

Assets% Market



2013 YTD Change

Assets% Market

Share

Equity

Emerging Markets

Mexico (164.8) 1,016.7 94.2 8,194.2 71.5 11

Colombia 71.1 505.9 46.9 1,518.4 13.3 1

Brazil (126.4) (461.5) (42.8) 1,270.7 11.1 16

China - (0.1) (0.0) 103.1 0.9 1

EM Equity Total (219.9) 1,058.9 98.1 11,096.2 96.8 30

Equity Total (219.9) 1,058.9 98.1 11,096.2 96.8 30

Fixed Income 2.9 20.7 1.9 361.3 3.2 6

Latin America Listed ETP total (217.0) 1,079.5 100.0 11,457.5 100.0 36

Exposure (US$mn)1

Aug2013

Net Flows

2013 YTD Net

Flows

% of YTD

Flows Assets% of

Assets # ETPs

Latin America ETP Flows by Exposure

1.32.7

6.3

5.5

9.810.1 10.3

12.2

11.5

22

6 10

17

26

31

35 36

0

5

10

15

20

25

30

35

40

$0

$5

$10

$15

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Aug-13

# ETPsAssets ($bn)


Latin America ETPs Ranked by YTD Inflows and Outflows


InflowsAug-13Assets


Aug-13Assets

[ 35 ]


Exchange traded products (ETPs) are portfolio exposure securities that trade intra-day on an exchange

The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report.

1. Data is as of August 29, 2013 for Europe and August 30, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of July 30, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.

2. We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly.

3. Source: Eurostat Flash Estimate as of Q2 2013

4. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-July 2013 data is sourced from EPFR monthly data. August 2013 data is sourced from EPFR weekly data for the four weeks ended Aug 28, 2013. Money Market mutual fund flows is sourced from EPFR weekly data for the four weeks ended Aug 28, 2013.

5. Source: BlackRock

6. Source: Bloomberg US Generic Govt 10 Year Yield Index (USGG10YR Index), as of August 2013

7. Source: BlackRock, Bloomberg, Reuters

Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Endnotes

ABOUT BLACKROCK

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2013, BlackRock’s AUM was $3.857 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2013, the firm has approximately 10,700 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.

[ 36 ]


REGULATORY INFORMATION

BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 ThrogmortonAvenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000.

This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request.

This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results.

This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors.

The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change.

This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction.

This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate.

BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements.

This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, ‘BlackRock’).

This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.

Disclaimer

[ 37 ]


NOTICE TO RESIDENTS IN AUSTRALIA:

Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iSharesTrust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc. (collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at iShares.com.au.You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest.

iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called “Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the iShares funds.

FOR INVESTORS IN CANADA:

The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates.

FOR INVESTORS IN HONG KONG:

Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under.

NOTICE TO RESIDENTS IN INDIA:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India.

NOTICE TO RESIDENTS IN JAPAN:

This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request.

Disclaimer (continued)

[ 38 ]

Disclaimer (continued)

FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA:

In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America.

NOTICE TO RESIDENTS IN SINGAPORE:

This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA.

NOTICE TO RESIDENTS IN THAILAND:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.

NOTICE TO RESIDENTS IN VIETNAM:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.

© 2013 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded.

BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES, are registered and unregistered trademarks of BlackRock, Inc. or itssubsidiaries in the United States and elsewhere. All other marks are those of their respective owners.

iS-10608-0913

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