european fund market data digest - broadridge...5 2016 edition european fund market review...

2016 EDITION

EUROPEAN FUND MARKETDATA DIGEST

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2016 EDITIONEUROPEAN FUND MARKET REVIEW

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©2016 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc.

AUTHOR INFORMATIONJérôme CouteurProduct Manager, [email protected]

Barbara FerraresiProduct Manager, [email protected]

Diana [email protected]

Broadridge Databases Featured:FundFileSalesWatchFund Distribution Intelligence

Kalie HewittGraphics [email protected]

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2016 EDITION EUROPEAN FUND MARKET REVIEW

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OVERVIEWEurope proved its worth as the region of highest growth potential for global asset managers in 2015. But, it was far from smooth sailing and those weighing anchor found the winds changing abruptly from the benign breezes of quantitative easing to macroeconomic headwinds that forced a retreat in the second half. The year ended with dark clouds on the horizon but by then Europe’s long-term funds had registered net sales volumes larger than any other global region, including the US. Money market funds, the staple diet of Chinese investors, bulked out the Asian score but at €215bn its long-term sectors lagged Europe’s €285bn influx. In comparison the pace of equivalent flows in the US was diminutive at just €69bn.

The sun was shining at the start of the year in Europe but it was the fuel supplied by the ECB’s quantitative easing programme that sparked some of the most frantic net fund purchasing that the region had ever seen. And no wonder – QE was already a tried-and-tested recipe for asset-price inflation in several countries and investors responded by hurling money into a variety of mutual fund pots. It led to record-breaking net inflows in the first quarter and Europe’s best-ever month of sales in April. But the QE boost failed to match the headwinds coming from the US Fed and expectations of rising interest rates. Sales volumes began to slow in May and from June the smart money started to take profits from the colossal bond holdings they had built up over the past three years. As the year rolled on investors pulled €63bn from fixed income funds, not quite depleting the €88bn they pumped into the sector during the first five months of 2015.

Equities have had a comparatively rough ride in recent years. Despite periods of obvious opportunity and significant market growth, investors have been reluctant to accept the risk they involve. In the last three years sales volumes have been modest, failing to match the momentum of either bond or mixed asset products.

All in all, 2015 was a reasonable year for sales of equity funds, which took in a net €82bn, though exactly half of this was placed in ETFs and another 28% in low-cost index trackers. European equities were the sweet spot but there was strong evidence of rotation out of US equivalents. US stocks had already benefited from the succour of American QE and were widely deemed expensive relative to other markets. Coupled with mounting anticipation of a rate rise in the US at some point in the year, investors weren’t minded to look Europe’s gift horse in the mouth, but new money remained in relatively short supply.

The other big area notably rattled by US policy moves was emerging markets – demand for such funds (both equities and bonds) was sparse for much of the year as the rising dollar encouraged capital flight and concerns over the ability of developing countries to service dollar-denominated debt. Of course, this area was also particularly susceptible to the entrenched crunch in commodity prices, led by cheap oil, as well as the shockwaves that emanated from the Chinese stock-market crash in the summer.

For most European investors the darling of the year was mixed asset funds, which attracted a record €189bn in net sales. Mixed assets have become the go-to option for investors buffeted by contradictory and fast-changing market winds, and for those looking for diluted access to equities. Independent specialists were the first movers in offering funds with flexible mandates, wrapped with absolute return promises but since 2014 continental retail banks have adopted the mantra to encourage their captive clients to migrate out of unproductive cash deposits and into mutual funds. Demand dwindled as the year wore on but the mixed asset category was the only one to reap positive net flows every month.

The active/passive struggleThe battle of the strategies ratcheted up in 2015 as the regulators and the press in a number of countries embarked upon a politically correct war of words against active managers. Ultimately this was a debate on pricing and the value offered by active strategies but with a commission-ban looming for independent distributors in wider Europe, the debate made its mark. Its impact on equity purchases was most profound with little more than 20% of inflows going into actively managed funds. Rotational issues were a feature with legacy investors pulling money out of core actively managed US, emerging market and global funds but then investing in stock funds offering alternative strategies and income-generating equivalents. Those looking for core regional sector exposure placed their bets on passive funds. There was some room for active managers in the race to gather performance benefit from European equities and here Invesco was the main beneficiary.

In the fixed income arena similar dynamics were at play but large outflows from maturing target date funds dragged the active sector into redemptions of €9bn, whilst passive funds benefited from €35bn of inflows. Mixed asset funds, meanwhile, remained almost totally immune to passive encroachment. In this space funds are judged on more than their adherence to benchmarks, making it easier for asset managers to offer persuasive arguments on the value they offer. With market volatility increasing in the early months of 2016, the expanding range of alternative Ucits funds will fall into the same attractive active camp for their offer of uncorrelated returns.

KEY DATA:TOTAL # OF MASTER GROUPS ........................................................ 1,829TOTAL # OF COMPANIES ................................................................ 2,691TOTAL # OF FUNDS ....................................................................... 33,777FUND LAUNCHES............................................................................ 2,346FUND CLOSURES ............................................................................ 2,986TOTAL NET ASSETS (DECEMBER 2015) ................................... €8,265BNASSET GROWTH (2014-2015) ..................................................... €766BNESTIMATED NET SALES (2015) ..................................................€377.1BNESTIMATED NET SALES (H1 2015) ............................................ €239.3BNESTIMATED NET SALES (H2 2015) .............................................€137.7BN

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Market successIn the multi-coloured patchwork of markets that comprise Europe there were four stand-out successes. The promotion of internally run funds by banks to their captive clients was the biggest driver of sales flows in all markets except the UK and, excluding money market funds, it was banks, supported by local boutiques in Italy and Germany that scored the largest inflows of €42bn and €32bn respectively. The vibrant wealth-management sector in Switzerland, also largely bank-directed, followed with €21bn of net receipts, making 2015 Switzerland’s best year on record.

Spain, though, was a conundrum. After two years of progressively rising sales flows, the market seemed to be hit by a period of torpor last year. In reality Spain ranked as last year’s fourth success story thanks to the local banks defining a new distribution strategy that directed client money away from in-house single funds and into funds of funds. These products, offering similar diversification benefits to mixed assets funds, are excluded from Broadridge data totals to avoid double-counting. This is not normally a problem but, in the case of Spain in 2015, an inflow totaling €29bn was easy to miss. Significantly, the bulk of this new money benefited independent cross-border groups rather than the distributor banks’ captive funds.

The biggest inflows of all went to the large community of groups sourcing assets from multiple markets and regions. All told, they accumulated long-term fund inflows of €157bn with mixed asset and equity funds contributing the bulk in more or less equal measure. The bulk of these assets come from European investors although the relative importance of Asian markets should not be ignored. According to Broadridge SalesWatch data, sourced from 57 of Europe’s leading cross-border groups, Italy, Spain and Germany were responsible for the largest sales volumes for these groups. Their success in the Swiss market was far from obvious but Swiss fund selectors occupy the premium high-net-worth end of the market where money was moving at increasingly rapid speed through funds and sectors. Some cross-border groups will have undoubtedly scored wins in Switzerland, but at the expense of the losers.

OVERVIEWCompetitor successWhich groups gathered the largest volumes of new money across Europe? The good news is that the data offers no evidence of a winner-takes-all dynamic. In 2015, 200 groups each gathered over €1bn in net sales and 2,000 funds generated more than €100m apiece. The pan-European leader remains BlackRock with a market share of under 7%. However, BlackRock’s share of sales was so far ahead of the rest of the pack that the group now really stands in a class of its own. With ETFs included, BlackRock’s annual sales total reached €51bn, pushing the group close to the €500bn threshold of assets under management. To put this achievement into context, second-ranked Intesa SanPaolo registered annual net inflows of just €20bn. In fact BlackRock’s net sales gains more or less equalled the total asset size of a respectable mid-sized group like Carmignac. Its sales success (excluding ETFs) was broad-based with 64 funds generating over €100m of net inflows and there was no blockbuster to spell future danger for the group. Its top-selling fund was its flexible bond product – Fixed Income Strategies – but no sign of product concentration here. This fund accounted for just 10% of the total sales of BlackRock’s products that were in positive flow in 2015.

Diana MackayCEOMackay Williams LLP

BondEquityMixed AssetsFund of Funds Money MarketOther

EUROPEAN ASSETS BY INVESTMENT TYPE

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OVERVIEW

FIGURE 2 GLOBAL NET SALES IN 2015 (€M)

-100,000

0

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600,000

Asia-Pacific Europe Latin America MEA USA

Bond Equity Mixed Assets Money Market Other

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Q1 2015 Q2 2015 Q3 2015 Q4 2015

Bond Equity Mixed Assets Money Market Other

FIGURE 1 EUROPEAN NET SALES IN 2015 (€M)

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FIGURE 3 EUROPEAN ASSETS: BOND, EQUITY, & MIXED FUNDS (€M)

0

500,000

1,000,000

1,500,000

2,000,000

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2007 2008 2009 2010 2011 2012 2013 2014 2015

Bond Equity Mixed Assets

OVERVIEW

FIGURE 4 NUMBER OF FUND LAUNCHES BY ASSET CLASS

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2007 2008 2009 2010 2011 2012 2013 2014 2015

Bond Equity Mixed Assets

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BEST-SELLING EQUITY FUNDS IN 2015

FUND EQUITY CLASSIFICATION NET SALES (€M)UniGlobal Vorsorge Global Income 8,279.0

SSgA UK Equity Tracker United Kingdom 4,316.8

CF Woodford Equity Income UK Income 4,239.7

SSgA Europe ex UK Equity Tracker Europe Ex UK 3,132.4

Allianz European Equity Dividend Europe Income 2,850.4

FIGURE 6

BEST SELLERSFIGURE 5

FIGURE 7

BEST-SELLING BOND FUNDS IN 2015

FUND BOND CLASSIFICATION NET SALES (€M)BlackRock Fixed Income Strategies Flexible 3,612.2

PIMCO GIS Income Fund Global Currencies 3,305.4

BlackRock Fixed Income Global Opportunities Flexible 3,125.9

Eurizon EasyFund Treasury EUR T1 Global Currencies 2,807.9

Amundi Funds Bond Global Aggregate Global Currencies 2,584.4

BEST-SELLING MIXED FUNDS IN 2015

FUND MIXED CLASSIFICATION NET SALES (€M)Standard Life SICAV Global Absolute Return Strategies Allocation Alternative 7,113.7

JPMorgan Investment Funds - Global Income Income 5,469.6

Invesco Perpetual Global Targeted Returns Allocation Alternative 5,375.7

Nordea 1 - Stable Return Asset Allocation 4,227.5

Multiflex Sicav - Global Multi-Asset Income Income 4,000.4

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EUROPEAN SALESFIGURE 8 EUROPEAN MARKET RANKING BY ESTIMATED NET SALES IN 2015 (€M)

RANK FUND MARKET BOND COMMODITY EQUITY MIXED MM PROPERTY OTHER TOTAL1 International 26,338.2 2,320.5 62,745.3 73,319.8 36,539.4 264.9 -6,512.1 195,016.0 2 Italy 4,415.3 34.0 593.6 39,414.5 3,356.4 - -2,206.4 45,607.4 3 France 2,491.0 -232.6 -304.6 7,385.0 25,129.7 - -2,880.2 31,588.3 4 Germany 4,493.1 115.1 2,066.1 22,698.2 370.3 1,241.5 349.1 31,333.4 5 United Kingdom -9,255.1 0.1 -272.9 17,564.4 11,223.2 2,866.0 -1,168.9 20,956.8 6 Switzerland 7,265.1 -595.1 11,151.1 4,163.8 -2,023.8 292.2 386.5 20,639.7 7 Belgium -4,240.9 339.7 1,668.0 6,862.1 15,000.1 - -1,808.7 17,820.4 8 Sweden 500.9 - 585.3 2,064.6 1,884.0 - 2,897.6 7,932.3 9 Netherlands -105.2 145.4 3,837.3 422.2 889.7 - 41.2 5,230.7

10 Denmark 2,422.3 - -1,569.3 1,183.3 -79.7 - -65.5 1,891.0 11 Finland 126.6 -4.6 684.1 54.5 376.7 212.7 -212.0 1,238.0 12 Greece -35.4 - -29.5 15.2 1,059.7 - -87.2 922.7 13 Turkey 838.6 -63.3 70.9 196.7 -311.4 -0.0 53.8 785.3 14 Czech Republic 108.6 15.0 167.8 357.0 -93.4 156.6 25.1 736.7 15 Croatia 306.5 - 11.5 78.1 4.8 - -0.0 400.9 16 Poland -486.0 9.1 304.4 -14.9 539.8 - 38.0 390.4 17 Romania -32.4 - 14.6 123.4 74.3 - 57.5 237.3 18 Slovenia 28.9 - 62.7 42.9 18.6 0.6 - 153.8 19 Russia 23.7 -1.9 -30.9 46.0 -1.1 - -0.3 35.5 20 Slovakia -100.9 5.3 -20.3 319.6 -188.7 21.9 -2.6 34.2 21 Malta 2.5 - 10.4 76.0 -83.4 -4.0 19.9 21.3 22 Bulgaria 6.7 0.1 8.6 9.2 -16.0 - 0.0 8.5 23 Luxembourg -0.8 - 14.0 -9.9 - - - 3.4 24 Ukraine - - -0.0 -0.2 0.0 - - -0.3 25 Lithuania 2.9 - -1.3 -0.2 -5.0 - -1.7 -5.3 26 Latvia 6.1 - 0.8 2.8 -24.7 - - -15.0 27 Estonia -13.6 - -7.7 - - - - -21.3 28 Liechtenstein -47.5 - -39.2 2.9 0.6 - 13.4 -69.7 29 Portugal -662.2 - -28.4 103.8 389.4 54.3 -4.9 -147.9 30 Austria -1,102.1 -9.3 -348.3 683.9 -23.1 560.0 -38.4 -277.3 31 Hungary -97.7 -0.1 6.5 201.4 -676.1 82.0 -138.4 -622.3 32 Norway 1,510.8 - -2,893.6 155.2 -105.3 - 21.9 -1,311.0 33 Spain -9,387.3 -3.3 3,095.4 11,773.1 -1,493.4 -0.8 -7,416.7 -3,433.0

TOTAL EUROPE 25,320.8 2,074.1 81,552.1 189,294.2 91,731.6 5,747.9 -18,640.0 377,080.6

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FIGURE 9 TOP 25 SECTORS IN EUROPE (€M)

FIGURE 10 TOP AND BOTTOM FIVE SECTORS BY SALES IN 2015 (€M)

ALL SECTOR RANKING

RANK FUND SECTOR ENS 20151 Asset Allocation 54,316.1 2 Asset Allocation Alternative 49,341.9 3 Equities Europe 36,559.2 4 Money Market EUR 35,238.7 5 Money Market USD 33,095.2 6 Fund of Funds Conservative 30,909.4 7 Mixed Assets Conservative 28,807.8 8 Equities Alternative 25,936.6 9 Mixed Assets Income 24,404.5

10 Fund of Funds Balanced 23,395.1 11 Mixed Assets Balanced 22,798.8 12 Fund of Funds Asset Allocation 21,851.1 13 Money Market GBP 21,068.8 14 Equities Euroland 20,479.9 15 Bonds Global Currencies 15,923.1 16 Equities Europe Ex UK 11,783.2 17 Equities Europe Income 10,481.9 18 Equities Global Income 10,225.6 19 Equities Japan 10,193.8 20 Equities Europe Mid/Small Caps 8,243.3 21 Bonds EUR Corp. Inv. Grade 7,512.4 22 Bonds European Currencies Corp. High Yield 7,382.9 23 Fund of Funds Bonds 7,323.6 24 Bonds USD Corp. Inv. Grade 7,220.9 25 Bonds Global Corporates 6,662.8

REST -60,224.1 TOTAL 470,932.6

-30,000

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Asset Alloc Asset AllocAlt

Eq Europe MM Euro MM USD Eq China Derivatives Targ MatEuroland

Guarant'd Eq Nth Am

Note: Includes funds of funds.

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Note: Excludes money market funds and funds launched/merged in 2015

Eq Global

Eq Nth Am

Eq Europe

Derivatives

Bnd Gl CurrBnd Gl Curr

Eq Japan

Eq EurolandBnd CHF

Eq Eur S/MidAsset Alloc AltMix Bal

Bnd Flex

Asset Alloc

Eq China Eq DE

Mix Cons

Mix Income

Targ Mat Euroland

Bnd Eur Sh-T

Bnd Em Mkt Loc Cur Commod

Eq Em Mkt

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0

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

Sales contribution (€m)

Perf

orm

ance

con

trib

utio

n (€

m)

FIGURE 11 SECTOR POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO ASSET GROWTH IN 2015 (€M)


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Top 540%

6-1533%

16-2519%

Rest8%

RANK MASTER GROUP NAT # FUNDS ENS 20151 BlackRock US 512 51,070.9 2 Intesa SP IT 527 19,886.6 3 Deutsche AM DE 779 16,407.9 4 UBS CH 664 13,769.8 5 Cr Suisse CH 365 12,994.6 6 Vanguard US 51 11,634.0 7 Nordea SE 251 11,303.1 8 Allianz GI DE 418 10,960.3 9 VR/Union DE 445 10,650.6

10 State Street US 192 10,416.2 11 Standard Life GB 115 9,237.3 12 Pioneer IT 436 9,146.5 13 Soc Gen/Lyxor FR 327 7,427.6 14 GAM CH 262 7,153.5 15 Invesco US 157 7,072.1 16 Henderson GB 87 6,542.6 17 JP Morgan US 205 6,471.2 18 Fidelity US 231 6,452.7 19 ANIMA IT 138 5,686.1 20 New York Life / Candriam US 158 5,207.9 21 Old Mutual ZA 120 5,108.8 22 Generali IT 215 4,624.4 23 Northern Trust US 19 4,453.4 24 Woodford Investment GB 1 4,239.7 25 Natixis FR 279 4,036.9

TOP 25 6,954 261,954.7 REST 22,509 23,394.3 TOTAL 29,463 285,349.0

FIGURE 12

FIGURE 13

TOP EUROPEAN MASTER GROUPS BY SALES IN 2015 (€M)

MARKET SHARE OF LEADING MASTER GROUPS BY SALES IN 2015 (€M)

PAN-EUROPEAN MASTER GROUPS SALES

Note: Excludes money market funds.

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Top 2532%

Rest68%

FIGURE 14

FIGURE 15

TOP 25 FUNDS BY ESTIMATED NET SALES IN 2015 (€M)

MARKET SHARE OF BEST-SELLING 25 FUNDS

PAN-EUROPEAN FUND LEADERS SALES

RANK MASTER GROUP NAT FUND NAME DOMICILE LAUNCH DATE TYPE ENS 20151 VR/Union DE UniGlobal Vorsorge DE Jul-15 Eq 8,279.0 2 Standard Life GB Standard Life SICAV Global Absolute Return Strategies LU Jan-11 Mix 7,113.7 3 JP Morgan US JPMorgan Investment Funds - Global Income LU Dec-08 Mix 5,469.6 4 Invesco US Invesco Perpetual Global Targeted Returns UK Sep-13 Mix 5,375.7 5 State Street US SSgA UK Equity Tracker UK Apr-05 Eq 4,316.8 6 Woodford Investment GB CF Woodford Equity Income UK Jun-14 Eq 4,239.7 7 Nordea SE Nordea 1 - Stable Return Fund LU Nov-05 Mix 4,227.5 8 GAM Holding CH Multiflex Sicav - Global Multi-Asset Income LU May-15 Mix 4,000.4 9 BlackRock US BlackRock Fixed Income Strategies Fund LU Sep-09 Bnd 3,612.2

10 Generali IT FORTUNA INVEST - Risk Control CH Sep-14 Mix 3,431.8 11 Standard Life GB Standard Life Global Absolute Return Strategies UK Jan-08 Mix 3,394.9 12 PIMCO US PIMCO GIS Income Fund IE Nov-12 Bnd 3,305.4 13 State Street US SSgA Europe ex UK Equity Tracker UK Nov-06 Eq 3,132.4 14 BlackRock US BlackRock Fixed Income Global Opportunities LU Jan-07 Bnd 3,125.9 15 VR/Union DE PrivatFonds: Kontrolliert DE Jul-10 Mix 3,099.3 16 Allianz GI DE Allianz European Equity Dividend LU Mar-09 Eq 2,850.4 17 Intesa SP IT Eurizon EasyFund Treasury EUR T1 LU Mar-15 Bnd 2,807.9 18 UBS CH UBS European Opportunity Unconstrained LU Nov-10 Eq 2,698.6 19 Amundi FR Amundi Patrimoine FR Feb-12 Mix 2,614.0 20 Allianz GI DE Allianz Income and Growth LU Jun-11 Mix 2,594.7 21 ETHENEA LU Ethna-AKTIV LU Oct-01 Mix 2,591.7 22 Amundi FR Amundi Funds Bond Global Aggregate LU Oct-07 Bnd 2,584.4 23 BlackRock US iShares Core MSCI World UCITS ETF IE Sep-09 Eq 2,575.2 24 Deutsche AM DE db x-trackers EURO STOXX 50® UCITS ETF (DR) LU Jan-07 Eq 2,491.5 25 BlackRock US BlackRock European Equity Income LU Dec-10 Eq 2,442.8

TOTAL TOP 25 92,375.4 REST 192,973.6 TOTAL 285,349.0


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PRODUCT THEMES

FIGURE 16

FIGURE 17

TOP 10 MASTER GROUPS BY SALES IN 2015 (€M)

TOP 10 FUNDS BY SALES IN 2015 (€M)

RANK MASTER GROUPS NAT ASSETS DEC 2015 ENS 20151 BlackRock US 214,151.9 26,269.6 2 Deutsche AM DE 55,432.0 9,486.9 3 Soc Gen/Lyxor FR 46,147.7 7,325.2 4 UBS CH 24,906.5 6,883.0 5 Vanguard US 17,691.0 4,062.8 6 Amundi FR 19,488.2 3,319.9 7 Source US 15,278.7 2,223.3 8 State Street US 14,599.2 2,116.2 9 Commerzbank DE 7,001.7 1,181.9

10 ThinkCapital NL 1,623.5 473.8 TOTAL TOP 10 416,320.4 63,342.6 TOTAL 449,667.4 64,170.0

RANK MASTER GROUPS FUND NAME ENS 20151 BlackRock iShares Core MSCI World UCITS ETF 2,575.2 2 Deutsche AM db x-trackers EURO STOXX 50® UCITS ETF (DR) 2,491.5 3 BlackRock iShares Core S&P 500 UCITS ETF (USD) 2,314.6 4 BlackRock iShares EURO STOXX 50 UCITS ETF (DE) 2,307.7 5 Vanguard Vanguard S&P 500 UCITS ETF 2,196.2 6 BlackRock iShares STOXX Europe 600 (DE) 2,150.7 7 Deutsche AM db x-trackers DAX® UCITS ETF (DR) 2,082.5 8 BlackRock iShares MSCI Europe UCITS ETF (Inc) 1,766.0 9 BlackRock iShares $ High Yield Corporate Bond UCITS ETF 1,706.9

10 BlackRock iShares Core Euro Corporate Bond UCITS ETF 1,527.0 TOTAL TOP 10 21,118.3 TOTAL 64,170.0

EXCHANGE TRADED FUNDS

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RANK MASTER GROUPS FUND NAME ENS 20151 State Street SSgA UK Equity Tracker 4,316.8 2 State Street SSgA Europe ex UK Equity Tracker 3,132.4 3 Swisscanto Swisscanto (CH) Index Bond Fund Total Market AAA-BBB CHF 1,586.0 4 Vanguard Vanguard Global Bond Index 1,570.1 5 Northern Trust Northern Trust Europe Equity Index UCITS FGR 1,285.2 6 Vanguard Vanguard FTSE UK All Share Index Unit Trust 969.1 7 Delta Lloyd Delta Lloyd Institutioneel Global Equity Index 869.4 8 Northern Trust Northern Trust World Custom ESG Equity Index 857.0 9 MMC/Mercer Mercer QIF - Passive Global Equity CCF 850.0

10 BlackRock BlackRock Index Selection - Emerging Markets Index 833.8 TOTAL TOP 10 16,269.7 TOTAL 36,522.8

PRODUCT THEMES

FIGURE 18

FIGURE 19



RANK MASTER GROUPS NAT ASSETS DEC 2015 ENS 20151 State Street US 27,021.7 8,082.5 2 Vanguard US 66,653.3 7,718.5 3 Cr Suisse CH 56,178.3 5,291.2 4 Swisscanto CH 25,166.6 4,768.0 5 Northern Trust US 5,309.6 4,453.4 6 UBS CH 56,025.7 1,915.3 7 HSBC GB 11,017.6 1,277.4 8 MMC/Mercer US 3,779.9 1,118.6 9 Fidelity US 4,545.0 1,087.6

10 Legal & General GB 23,705.4 1,030.2 TOTAL TOP 10 279,403.2 36,742.8 TOTAL 534,040.4 36,522.8

INDEX TRACKING FUNDS

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Active86%

Index Tracking

8%ETFs6%

Active96%

ETF1%

Index Tracking

3%

PRODUCT THEMES

FIGURE 20 MARKET SHARE OF PASSIVE FUNDS BY ASSETS

ACTIVE VS. PASSIVE

FIGURE 21 HISTORICAL NET SALES (€M)

0

50,000

100,000

150,000

200,000

250,000

300,000

2012 2013 2014 2015

Active ETF Index Tracking


AS OF DECEMBER 2015AS OF DECEMBER 2013

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RANK MASTER GROUPS FUND NAME ENS 20151 Invesco Invesco Pan European Structured Equity Fund 2,411.4 2 BlackRock iShares STOXX Europe 600 (DE) 2,150.7 3 MFS MFS Meridian - European Value Fund 1,794.5 4 BlackRock iShares MSCI Europe UCITS ETF (Inc) 1,766.0 5 Invesco Invesco Pan European Equity Fund 1,506.6 6 Northern Trust Northern Trust Europe Equity Index UCITS FGR Fund 1,285.2 7 Allianz GI Allianz Europe Equity Growth 1,209.1 8 Jupiter The Jupiter Global Fund - Jupiter European Growth 1,135.4 9 Henderson Henderson Horizon - Pan European Equity Fund 979.7

10 BlackRock BlackRock Global Funds - European Fund 977.5 TOTAL TOP 1O 15,216.2 TOTAL 36,559.2

PRODUCT THEMES

FIGURE 22

FIGURE 23



RANK MASTER GROUPS NAT ASSETS DEC 2015 ENS 20151 BlackRock US 29,028.6 6,156.2 2 Invesco US 12,916.2 4,124.7 3 MFS US 8,481.5 2,649.3 4 Henderson GB 9,199.4 2,507.2 5 Natixis FR 9,129.2 1,734.5 6 Northern Trust US 1,484.0 1,637.1 7 Cr Suisse CH 5,323.1 1,383.9 8 Allianz GI DE 11,855.7 1,331.3 9 Jupiter GB 3,107.5 1,300.1

10 Deutsche AM DE 7,375.4 1,242.6 TOTAL TOP 1O 97,900.6 24,066.9 TOTAL 299,535.6 36,559.2

EQUITIES EUROPE

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PRODUCT THEMES

FIGURE 24

FIGURE 25



RANK MASTER GROUPS NAT ASSETS DEC 2015 ENS 20151 UBS CH 6,676.9 3,144.4 2 Old Mutual ZA 5,445.1 2,217.6 3 GAM CH 3,068.6 2,140.4 4 BlackRock US 4,923.1 2,005.4 5 Natixis FR 1,828.4 1,533.6 6 Exane FR 2,728.5 1,354.3 7 Pictet CH 3,740.9 1,272.6 8 BAML US 3,253.0 1,240.1 9 Allianz GI DE 1,895.0 1,078.5

10 RWC GB 1,965.3 807.5 TOTAL TOP 1O 35,524.8 16,794.4 TOTAL 86,983.5 25,936.6

RANK MASTER GROUPS FUND NAME ENS 20151 UBS UBS (Lux) Equity Sicav - European Opportunity Unconstrained 2,698.6 2 GAM Julius Baer Multistock - Absolute Return Europe Equity 2,150.5 3 Old Mutual Old Mutual Global Equity Absolute Return 2,111.9 4 Natixis DNCA Invest - Miuri 1,511.6 5 BlackRock BlackRock European Absolute Return Fund 1,275.6 6 Pictet Pictet Total Return - Agora 1,069.0 7 BAML Merrill Lynch Investment Solutions - Marshall Wace Tops 970.6 8 Allianz GI Allianz Discovery Europe Strategy 784.7

9 Columbia Threadneedle Threadneedle UK Absolute Alpha 660.0

10 Alken Alken Fund - Absolute Return Europe 659.8 TOTAL TOP 1O 13,892.3 TOTAL 25,936.6

EQUITIES ALTERNATIVE

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PRODUCT THEMES

FIGURE 26

FIGURE 27

HISTORICAL ASSETS (€M)

NET SALES IN 2015 (€M)

MIXED ASSETS FUNDS

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2008 2009 2010 2011 2012 2013 2014 2015

Asset Allocation

Asset Allocation Alternative

Life Cycle

Mixed Assets Balanced

Mixed Assets Conservative

Mixed Assets Dynamic

Mixed Assets Income

0 10,000 20,000 30,000 40,000 50,000 60,000

Life Cycle

Mixed Assets Dynamic

Mixed Assets Balanced

Mixed Assets Income

Mixed Assets Conservative

Asset Allocation Alternative

Asset Allocation

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PRODUCT THEMESMIXED ASSETS FUNDS

11-20Rest

Top 1015%

11-206%

Rest79%

FIGURE 28

FIGURE 29

TOP 10 FUNDS BY ASSETS IN DEC 2015 (€M)

MARKET SHARE OF LEADING FUNDS BY ASSETS

RANK MASTER GROUP FUND NAME DOMICILE LAUNCH DATE SECTOR ASSETS

DEC 20151 Standard Life Standard Life Global Absolute Return Strategies UK Jan-08 Asset Allocation Alternative 36,333.7 2 Carmignac Carmignac Patrimoine FR Jan-92 Mixed Assets Balanced 24,845.4 3 BlackRock BlackRock Global Funds - Global Allocation LU Jul-93 Mixed Assets Balanced 20,796.9 4 Standard Life Standard Life SICAV Global Absolute Return Strategies LU Jan-11 Asset Allocation Alternative 15,955.4 5 JP Morgan JPMorgan Investment Funds - Global Income LU Dec-08 Mixed Assets Income 15,531.9 6 BNY Mellon Newton Real Return UK Sep-93 Asset Allocation Alternative 12,360.9 7 ETHENEA Ethna-AKTIV LU Oct-01 Asset Allocation 11,713.1 8 Allianz GI Allianz Income and Growth LU Jun-11 Mixed Assets Income 11,655.4 9 BlackRock BlackRock Dynamic Diversified Growth JE Jun-08 Asset Allocation 9,317.3

10 Baillie Gifford Baillie Gifford Diversified Growth UK Dec-08 Asset Allocation 8,100.7 TOTAL TOP 10 166,610.9

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Next 10 sectors

29%

16-25 sectors

12%

Top 5 sectors

38%

Rest21%

RANK FUND SECTOR # FUNDS ENS 20151 Asset Allocation Alternative 98 16,986.92 Asset Allocation 213 15,555.23 Bonds Global Currencies 114 11,333.44 Equities Global 188 10,611.35 Equities Global Income 27 9,355.16 Mixed Assets Income 28 8,108.27 Target Maturity Other 41 7,158.18 Equities Emerging Markets 67 5,897.69 Mixed Assets Balanced 78 5,334.9

10 Fund of Funds Asset Allocation 118 5,240.111 Equities Europe 89 4,601.612 Fund of Funds Guaranteed 9 4,082.613 Protected Fund 83 3,783.014 Life Cycle 22 3,008.315 Equities North America 49 2,472.116 Mixed Assets Conservative 63 2,459.317 Bonds EUR 45 2,456.118 Equities Alternative 48 2,203.119 Bonds Global Corporates 31 2,069.220 Bonds Global High Yield 20 1,902.221 Bonds Emerging Markets 28 1,879.522 Target Maturity Euroland 23 1,860.123 Bonds CHF 5 1,842.424 Bonds Alternative 30 1,836.125 Equities Real Estate 13 1,653.5

TOP 25 1,735 133,690.0TOTAL 2,346 170,107.4

PRODUCT DEVELOPMENT

FIGURE 30

FIGURE 31

TOP 25 SECTORS OF NEW FUNDS IN 2015 (€M)

MARKET SHARE OF LEADING SECTORS OF NEW FUNDS

NEW FUNDS BY SECTOR

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REGION # FUNDS ENS 2015Europe 1,263 109,331.1 International 1,083 60,776.4 TOTAL 2,346 170,107.4

PRODUCT DEVELOPMENT

FIGURE 32 FUND LAUNCHES BY REGION IN 2015 (€M)

NEW FUNDS BY REGION AND GROUP

RANK MASTER GROUP # FUNDS ENS 20151 Intesa SP 52 17,738.6 2 VR/Union 23 10,887.5 3 Pioneer 30 6,785.7 4 Cr Suisse 29 6,187.0 5 ANIMA 23 5,827.2 6 GAM 16 5,159.7 7 KBC 96 4,956.0 8 Deutsche AM 61 4,842.2 9 Northern Trust 11 4,351.6

10 Soc Gen/Lyxor 40 3,537.8 TOP 10 381 70,273.3 Total 2,346 170,107.4

FIGURE 33 FUND LAUNCHES BY GROUP IN 2015 (€M)

RANK MASTER GROUP # FUNDS ENS 20151 Mixed Assets 538 52,722.0 2 Equity 822 47,542.2 3 Bond 526 43,920.0 4 Commodity 6 266.3 5 Property 2 163.6 6 Fund of Funds 271 14,803.2 7 Money Market 28 2,912.1 8 Other 153 7,778.1

Total 2,346 170,107.4

FIGURE 34 FUND LAUNCHES BY INVESTMENT TYPE IN 2015 (€M)

Note: Includes funds of funds and money market funds.

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Top 556%

6-1540%

Rest4%

CROSS-BORDER PROGRESS

FIGURE 35 TOP 25 INTERNATIONAL GROUPS BY ESTIMATED NET SALES IN 2015 (€M)


RANK MASTER GROUP NAT # FUNDS ASSETS DEC 2015 ENS 20151 BlackRock US 433 404,514.6 47,351.2 2 Deutsche AM DE 418 124,342.8 12,551.0 3 Nordea SE 91 50,876.4 9,992.9 4 UBS CH 392 108,355.3 9,746.8 5 Vanguard US 44 71,807.8 8,780.6 6 Allianz GI DE 79 47,913.0 8,446.4 7 Soc Gen/Lyxor FR 263 49,865.0 8,013.8 8 Standard Life GB 37 24,770.0 7,565.1 9 JP Morgan US 163 124,176.1 6,605.9

10 Henderson GB 36 28,387.6 6,491.0 11 GAM CH 135 42,669.3 6,009.9 12 Invesco US 107 56,291.1 5,767.2 13 Fidelity US 162 94,221.3 5,388.2 14 New York Life / Candriam US 92 20,543.1 4,959.4 15 BNY Mellon US 73 30,374.1 4,587.8 16 Amundi FR 212 58,769.2 4,325.5 17 Pictet CH 91 56,130.7 4,188.0 18 Jupiter GB 16 10,797.3 3,740.9 19 Schroders GB 133 91,139.4 3,643.0 20 Wellington US 61 24,108.4 3,479.1 21 Natixis FR 78 25,738.6 3,452.2 22 Pioneer IT 55 47,315.9 3,380.6 23 UBP CH 44 11,855.6 3,247.7 24 Old Mutual ZA 34 10,023.6 3,187.5 25 MFS US 48 33,569.3 3,026.8

TOP 25 3,297 1,648,555.5 187,928.5 REST 6,646 1,699,191.6 -29,452.0 TOTAL 9,943 3,347,747.2 158,476.5

FIGURE 36 MARKET SHARE OF LEADING MASTER GROUPS BY SALES IN 2015 (€M)

GROUP WINNERS

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BlackRock

Fidelity

UBSAXA

VanguardJP Morgan

Deutsche AMSchroders

PictetSoc Gen/Lyxor

Nordea

Standard Life

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

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

Sales contribution (€m)

Perf

orm

ance

con

trib

utio

n (€

m)

FIGURE 37 GROUP POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO ASSET GROWTH IN 2015 (€M)

CROSS-BORDER PROGRESSGROUP WINNERS


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-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

IT SP DEU BE AU FR SWE CH UK NL

Domestic Foreign

FIGURE 38 NET SALES OF FOREIGN GROUPS BY MARKET IN 2015 - ALL FUNDS (€M)

-8,000 -6,000 -4,000 -2,000

02,0004,0006,0008,000

10,00012,00014,000

SP IT AU BE SWE UK DEU FR CH NL

Domestic Foreign

FIGURE 39 NET SALES OF FOREIGN GROUPS BY MARKET IN 2015 - EQUITY ONLY (€M)

-15,000

-10,000

-5,000

0

5,000

10,000

SP DEU AU NL IT FR SWE BE UK CH

Domestic Foreign

FIGURE 40 NET SALES OF FOREIGN GROUPS BY MARKET IN 2015 - BOND ONLY (€M)

Note: Excludes money market funds & ETFs1. Foreign activity is actual sales as measured by the Broadridge SalesWatch Confidential Service.2. The 57 members are estimated to account for 75-80% of the total crossborder sales activity

FOREIGN SHARE OF SALES IN EUROPE

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FIGURE 41 TOP 5 DOMESTIC AND FOREIGN SECTORS IN THE MAJOR MARKETS

Note: Excludes money market funds & ETFs

FRANCEDOMESTIC ENS 2015 FOREIGN REAL SALES 2015

1 Asset Allocation 5,348.0 Equities Europe Confidential2 Mixed Assets Conservative 1,547.4 Asset Allocation3 Equities Alternative 1,147.7 Bonds EUR Corp. High Yield4 Convertible Bonds & Options 892.3 Bonds Asian Currencies5 Equities Euroland Mid/Small Caps 846.4 Convertible Bonds & Options

GERMANYDOMESTIC ENS 2015 FOREIGN REAL SALES 2015

1 Equities Global Income 10,533.1 Bonds EUR Confidential2 Mixed Assets Conservative 8,996.9 Mixed Assets Income3 Asset Allocation Alternative 4,512.8 Mixed Assets Balanced4 Asset Allocation 3,960.5 Equities Alternative5 Mixed Assets Balanced 3,494.1 Asset Allocation Alternative

ITALYDOMESTIC ENS 2015 FOREIGN REAL SALES 2015

1 Asset Allocation Alternative 10,373.6 Mixed Assets Income Confidential2 Asset Allocation 10,324.2 Asset Allocation3 Mixed Assets Conservative 7,673.1 Equities Europe4 Bonds Global Currencies 4,896.0 Asset Allocation Alternative5 Mixed Assets Income 4,284.4 Equities Alternative

SWITZERLANDDOMESTIC ENS 2015 FOREIGN REAL SALES 2015

1 Asset Allocation 4,278.2 Bonds European Currencies Corp. High Yield Confidential2 Equities Emerging Markets 3,877.0 Bonds Global Currencies3 Bonds Global Currencies 3,807.3 Equities Europe4 Equities Europe 2,532.2 Bonds USD Corp. Inv. Grade5 Equities Global 2,255.6 Asset Allocation

UNITED KINGDOMDOMESTIC ENS 2015 FOREIGN REAL SALES 2015

1 Asset Allocation Alternative 11,876.5 Bonds Flexible Confidential2 Equities Europe Ex UK 6,084.4 Equities Global3 Real Estate 2,866.0 Bonds Global High Yield4 Equities Japan 2,843.8 Asset Allocation5 Mixed Assets Balanced 2,656.1 Bonds EUR Corp. Inv. Grade

DOMESTIC VS. FOREIGN SECTORS

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IN FOCUS: U.S. FUND AND EFT MARKET REVIEWUSE OF ETFS AND PASSIVELY MANAGED PRODUCTS ACCELERATES IN 2015

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U.S. LONG TERM MUTUAL FUNDS AND ETF ASSETS 2014-2015TOTAL ETF ASSETS HIT AN ALL-TIME HIGH OF $2.2 TRILLION IN 2015, DRIVEN BY THE CONTINUED GROWTH IN POPULARITY OF PASSIVE INVESTMENT VEHICLES.

-2.2%

6.1%

LTMFs

ETFs

GROWTH IN AUM IN ALL THIRD-PARTY CHANNELS2014-2015

ETFS GROW, LTMFS DECLINE

-1%

2%Passive managed

index funds & ETFs

Actively managedfunds & ETFs

GROWTH BY ASSET TYPE2014-2015

PASSIVELY MANAGED INVESTMENT OUTPACE ACTIVE

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INCREASED USAGE OF PASSIVELY MANAGED FUNDS IN 2015WHILE MOST ASSETS IN THE U.S. ARE IN ACTIVELY MANAGED FUNDS, THE USE OF PASSIVE MANAGEMENT HAS ACCELERATED DURING 2015

OVERALL HOLDINGS, PASSIVE VS. ACTIVE MANAGEMENT IN 2015

MOST ASSETS HELD STILL ACTIVELY MANAGED

69%

31%

ACTIVEPASSIVE

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DEMAND FOR PASSIVE MANAGEMENT SPANS ALL DISTRIBUTION CHANNELSPASSIVE HOLDING HIGHEST IN BANK AND DISCOUNT CHANNELS

19%

26%

30%

31%

40%

48%

57%

0% 10% 20% 30% 40% 50% 60%

IBD

Wirehouse

RIA

Trust Company

Bank

Private Bank

Discount

PASSIVE MANAGED ASSETS AS A % OF TOTAL FUNDS AND ETFS IN 2015

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INCREASED USE OF ETFS DURING 2015ETFS CAPTURE A LARGER SHARE OF U.S. ASSETS DURING 2015

FUND\ETF ASSETS -2015FUND\ETF ASSETS -2014

21.9%

78.1%

ETFsLTMFs

23.3%

76.7%

ETFsLTMFs

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INCREASED USE OF ETFS BY FINANCIAL ADVISORSETFS ARE USED FOR CORE ALLOCATIONS BY FINANCIAL ADVISORS

ETF RETAIL CHANNEL - ASSET GROWTH BY CATEGORY 2014-2015

ETF RETAIL CHANNELS - PRODUCT GROWTH BY CATEGORY

25%

13%

-18%-14%

11%

18%

Allocation Alternative Commodities Convertibles Equity Fixed

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FOOTNOTES1. All data is at December 2015 unless otherwise stated.2. ‘International’ fund market. Broadridge defines an International fund as a fund

that sources less than 80% of its assets from any single country. Some fund groups have domestic and international funds.

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

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

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

6. Property funds are open-ended property funds only.7. Master group. Analysis that aggregates the European mutual fund assets under the

umbrella of their parent company name. ENS stands for estimated net sales.8. ETFs are included in broadridge’s database on mutual funds, but this excludes

exchange-traded commodity products that are not mutual funds.9. References to foreign activity relate to actual sales as measured by Broadridge’s

SalesWatch confidential service. The 57 SalesWatch members are estimated to account for 75-80% of total cross-border sales activity.

10. Data on pages 26-30 ‘US Funds and ETFs in 2015’ relates to the Fund Distribution Database.

The following report is based on the unique fund flows information delivered through Broadridge FundFile, our leading global fund flows database. The charts and tables in this report reflect only the tip of the iceberg in terms of the depth and breadth available from Broadridge FundFile. The report offers a high-level overview of European fund flow activity for 2015 year to date.

Broadridge FundFile enables deep fund flows analysis of all key geographical markets, covering Asia Pacific, Latin America, the Middle East and Africa, and the U.S., and delivers a truly global fund flows solution. By gradually building the international reach of its global sales data and maintaining its high quality and ease of use over the past ten years, FundFile has become the unparalleled source of data and analysis, with information on more than 100,000 funds.

The cross-border dimension of the European funds industry–the “international” fund market–can truly be assessed only with Broadridge SalesWatch, a unique cooperative and confidential benchmarking service that allows leading fund groups to track their cross-border sales and assets against their competitors’ by country, distribution channel, institutional versus retail activity, and both gross and net sales. This service now counts 57 of the leading asset managers among its members. (Some sample data taken from the tool can be seen on pages 23 and 24 of the current report).

ABOUT THE REPORT

For more information please contact us [email protected] or phoneus at +1 617 960 2598 (North America)or +44 207 551 3287 (UK, Europe and Asia).

As product line-ups, fund structures, Investor bases and geographies expand, the complexities of fee calculations increase. Broadridge’s services and solutions help organisations with the calculations of dynamic and complex fee schedules. Our automated end to end solution reduces revenue loss, fee leakage and improves revenue forecasts; providing clients the access, visibility and control they need to operate with confidence.

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© 2016 Broadridge Financial Solutions, Inc., Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc.

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