Lipper European fund market review 2014

REUTERS/YURIKO NAKAO

EUROPEAN FUND MARKET REVIEW 2014 EDITION

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© Thomson Reuters 2014. All Rights Reserved. This report is for informational purposes only, and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any

security of any entity in any jurisdiction. No guarantee is made that the information in this report is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained

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EUROPEAN FUND MARKET REVIEW

2014 EDITION

OVERVIEW

KEY DATA:

TOTAL # OF MASTER GROUPS

1,975

TOTAL # OF COMPANIES2,899

TOTAL # OF FUNDS37,870

FUND LAUNCHES2,655

FUND CLOSURES3,552

TOTAL NET ASSETS (DECEMBER 2013)

€6,380BN

ASSET GROWTH (2012-2013)€433.2BN

ESTIMATED NET SALES (2013)

€183.5BN

ESTIMATED NET SALES (H1 2013)

€121.8BN

ESTIMATED NET SALES (H2 2013)

€61.7BN

The following report is based on the unique fund flows information delivered through Lipper 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 Lipper within FundFile. The report offers a high-level overview of European fund flows activity in 2013.

Lipper FundFile allows 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 global sales data, the high quality and ease of use that have made FundFile the unparalleled source of data and analysis–compiling information on more than 100,000 funds over the past ten years–have been maintained.

The cross-border dimension of the European funds industry–the “international” fund market–can only truly be assessed with Lipper SalesWatch, a unique cooperative, 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 50 of the leading asset managers among its members. Some sample data taken from the tool can be seen on pages 17 and 18 of the current report.

Over the course of the year 2013 the European fund industry enjoyed net sales of €183.5bn into mutual funds. These consisted of sales of €96bn into bond funds, €92bn into equity funds and €85bn into mixed-asset funds. The highest outflows were seen in money market funds (-€93bn) and commodity funds (-€8bn). This year stands in considerable contrast to 2012 which saw the complete domination of sales into bond funds. Whilst there is no substantial evidence that the bond bubble is bursting, 2013 has been characterised by a considerable uptake in investor risk appetite

which has been reflected by more robust flows into equity funds. Equity sales have increased in all major countries (with the notable exception of Germany with outflows of -€6bn). For 2013 Global and European equities were ranked third and fourth respectively with around €26bn of net sales.

There was a marked inflection point in May and June 2013 with the first mentioning of “tapering” which spooked the market and resulted in large adjustments in fixed income composition. Interestingly, investors didn’t cash in their chips with bonds, but rather de-risked within the sector - moving out of EM debt and local currency bonds into better rated global currency and western high yield bonds. Indeed, global currency debt came in at number two on the sales hit parade at €27bn and more nimble flexible bond funds taking nearly €24bn.

In what is clearly a volatile asset allocation environment, there has been considerable growth into Mixed Asset funds (€85bn) which have proven particularly popular in Italy (€18bn) the UK (€12bn) and Germany (€10bn). The bulk of these mixed flows have come in via the cross border funds (€37bn) showing that the trend may be geographically wider than mere regional sales suggest. Certainly, sophisticated products like Standard Life Gars (€4.2bn) haven continued to raise the profile of the sector.

In terms of group success, BlackRock has maintained its number one ranking with €32bn of European sales however, given that this figure includes a substantial book of passive business, JP Morgan should be considered the top active house with flows of €21bn. The most notable omission in the league table is PIMCO. In light of the bond tapering scare, recent poor performance of their flagship fund and the departure of CIO/CEO Mohamed El-Erian, they have slipped from number one in 2012 (€35bn) to outside of the top 25 for 2013.


4

OVERVIEW

FIGURE 2 GLOBAL NET SALES IN 2013 (€M)

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0

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100,000

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200,000

250,000

300,000

350,000

400,000

USA Europe Asia Pacific Latin America MEA

Bond Equity Mixed Assets Money Market Other

FIGURE 1 EUROPEAN NET SALES IN 2013 (€M)

-80,000

-60,000

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0

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40,000

60,000

80,000

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

Bond Equity Mixed Assets Money Market Other


5

BEST-SELLING EQUITY FUNDS IN 2013

FUND EQUITY CLASSIFICATION NET SALES (€M)

M&G Global Dividend Global 3,695.0

Polar Capital Funds Plc - Japan Fund Japan 2,358.8

AllianceBernstein SICAV - Select US Equity Portfolio North America 2,177.0

BlackRock - UK Equity Tracker United Kingdom 2,121.0

iShares MSCI Japan EUR Hedged UCITS ETF Japan 1,999.7

FIGURE 4

BEST SELLERS

FIGURE 3

FIGURE 5

BEST-SELLING BOND FUNDS IN 2013

FUND BOND CLASSIFICATION NET SALES (€M)

Templeton Global Total Return Fund Global 6,737.3

M&G Optimal Income Fund Flexible 5,541.8

ING (L) Renta Fund Global High Yield Global High Yield 3,493.6

PIMCO GIS Income Fund Global 3,183.5

SKY Harbor - U.S. Short Duration High Yield Fund USD Corp. High Yield 2,636.1

BEST-SELLING MIXED FUNDS IN 2013

FUND MIXED CLASSIFICATION NET SALES (€M)

Standard Life Global Absolute Return Strategies Asset Allocation 4,215.4

JPMorgan Investment Funds - Global Income Mixed Balanced 3,938.5

Schroder ISF-Global Multi-Asset Income Asset Allocation 2,841.1

Standard Life Global SIVAV Absolute Return Strategies Asset Allocation 2,573.3

Baillie Gifford Diversified Growth Asset Allocation 2,571.9


6

EUROPEAN SALESFIGURE 6 EUROPEAN MARKET RANKING BY ESTIMATED NET SALES IN 2013 (€M)

RANK FUND MARKET BOND COMMODITY EQUITY MIXED MM MM ENH PROPERTY OTHER TOTAL

1 International 71,848.1 -1,939.0 94,524.5 37,227.1 -54,198.1 -2,046.2 347.3 11,256.0 157,019.7 2 Spain 17,074.0 -0.0 2,831.5 2,006.3 3,413.1 272.6 -15.3 -5,602.5 19,979.5 3 Italy 1,704.0 48.4 182.3 17,858.7 -869.5 701.8 - -330.0 19,295.8 4 Sweden 2,884.9 4.9 4,213.6 2,015.1 1,450.8 - - 838.1 11,407.5 5 United Kingdom -4,435.6 -1.5 188.2 11,932.6 717.4 60.9 1,298.1 -318.8 9,441.3 6 Germany 4,134.5 -616.2 -5,932.9 9,590.6 -1,849.0 -82.9 527.3 -217.8 5,553.5 7 Norway 4,241.0 -16.1 1,247.3 93.3 -1,079.6 - - -58.1 4,427.8 8 Poland -408.5 1.6 683.7 754.7 1,719.5 -44.2 - -47.0 2,659.8 9 Hungary 1,127.3 -0.7 -36.4 159.7 772.0 2.4 231.4 226.5 2,482.2 10 Finland 827.9 -5.2 1,187.3 -1,329.6 774.4 131.0 4.6 -192.8 1,397.4 11 Romania 530.6 - -3.4 27.0 186.9 1.9 - 19.7 762.7 12 Czech Republic 39.3 4.3 235.2 158.0 -177.4 -2.7 38.8 375.9 671.5 13 Portugal -191.4 - -50.6 -465.4 1,456.5 - -148.2 -15.0 585.9 14 Slovakia 44.4 - 38.1 105.5 92.0 0.1 230.5 -2.4 508.2 15 Austria 236.3 5.5 300.0 -281.5 -123.6 -3.7 604.0 -249.3 487.6 16 Denmark -1,132.6 - -179.1 343.5 78.1 34.3 - 1,328.9 473.1 17 Russia 648.0 -11.2 -158.2 -70.2 3.2 - - 4.3 416.1 18 Malta 79.2 - 21.3 29.1 9.2 -0.3 - 37.8 176.4 19 Bulgaria 15.7 -0.7 10.6 7.4 26.3 - - 0.0 59.3 20 Estonia -5.2 - 60.7 - - - - 0.0 55.5 21 Croatia 19.1 - -23.2 -19.1 66.8 - - 0.0 43.5 22 Lithuania 2.0 - -2.2 0.4 - -0.6 - 4.7 4.4 23 Ukraine -0.3 - -0.3 -3.2 -0.7 - - 0.0 -4.5 24 Latvia 16.4 - -0.7 2.1 -22.5 - - 0.0 -4.7 25 Liechtenstein -49.8 -2.2 27.9 -22.5 - -0.5 - -4.9 -52.0 26 Slovenia -13.7 - -62.0 -22.0 13.4 - - 0.0 -84.3 27 Luxembourg -131.6 - 217.8 -353.8 -193.2 - - 25.5 -435.3 28 Turkey 175.5 -96.6 127.2 15.9 -746.9 - 0.0 -2.6 -527.5 29 Greece -412.8 -0.9 -117.5 21.4 -232.0 62.8 - -28.1 -707.1 30 Belgium -1,943.1 119.8 -2,974.4 3,590.8 -139.0 -23.3 - -1,970.5 -3,339.6 31 Netherlands -731.6 7.3 -1,713.3 -1,007.5 -27.8 - - -142.2 -3,615.1 32 Switzerland 4,282.4 -4,891.9 -4,860.4 1,351.8 -3,824.0 219.0 306.9 1,620.2 -5,796.0 33 France -4,091.7 -407.4 2,435.2 1,352.7 -41,233.2 3,307.6 - -1,210.3 -39,847.2

TOTAL EUROPE 96,382.7 -7,797.8 92,417.4 85,069.0 -93,936.6 2,589.8 3,425.4 5,345.2 183,495.3


7

FIGURE 7 TOP 25 SECTORS IN EUROPE (€M)

FIGURE 8 TOP AND BOTTOM FIVE SECTORS BY SALES

ALL SECTOR RANKING

-80000.00

-60000.00

-40000.00

-20000.00

0.00

20000.00

40000.00

60000.00

80000.00

Asset Alloc Bnd Gl Curr Eq Global Eq Europe Bnd Flex Eq UK Guarant'd Bnd USD MM USD MM Euro

RANK FUND SECTOR ENS 2013

1 Asset Allocation 59,944.0 2 Bonds Global Currencies 26,847.1 3 Equities Global 25,701.7 4 Equities Europe 25,567.5 5 Bonds Flexible 23,457.5 6 Equities Japan 16,130.0 7 Fund of Funds Asset Allocation 14,002.1 8 Bonds USD Corp. High Yield 13,734.9 9 Bonds EUR Short-Term 13,552.1 10 Equities North America 13,350.4 11 Mixed Assets Balanced 13,172.5 12 Bonds Speciality 12,133.7 13 Mixed Assets Conservative 11,483.4 14 Convertible Bonds & Options 11,458.3 15 Bonds EUR Corp. High Yield 9,588.7 16 Equities Emerging Markets 9,088.0 17 Equities Europe Mid/Small Caps 7,723.9 18 Bonds Global High Yield 7,572.9 19 Fund of Funds Balanced 7,481.9 20 Fund of Funds Conservative 6,913.3 21 Equities Speciality 6,742.6 22 Equities North America Mid/Small Caps 6,554.3 23 Target Maturity Euroland 6,446.6 24 Target Maturity Other 6,082.4 25 Fund of Funds Bonds 5,555.2

REST -137,178.5 TOTAL 223,106.6

Note: Includes funds of funds.


8

ALL SECTOR RANKINGFIGURE 9 SECTOR POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO

ASSET GROWTH IN 2013 (€M)

Eq Global

Eq UK

Eq Nth Am

Eq Europe

Eq EurolandEq DE

Eq JapanEq Europe Ex UK

Mix BalAsset Alloc

Bnd Eur CIGBnd USD Corp HY

Bnd Eur Sh-TBnd Flex

Bnd USD Bnd Gl CurrBnd Gl Curr

Eq Em MktCommod

Bnd Em Mkt Loc Cur

-20,000

-10,000

0

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20,000

30,000

40,000

50,000

60,000

70,000

80,000

-20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Sales contribution (€m)

Perf

orm

ance

con

trib

utio

n (€

m)

Note: Excludes money market funds.


9

Top 549%

6-1532%

16-2519%

FIGURE 10

FIGURE 11

TOP 25 EUROPEAN MASTER GROUPS BY SALES IN 2013 (€M)

MARKET SHARE OF LEADING MASTER GROUPS BY SALES

PAN-EUROPEAN MASTER GROUPS SALES

RANK MASTER GROUP NAT # FUNDS ENS 2013

1 BlackRock US 497 32,453.4 2 JP Morgan US 233 21,301.3 3 Fr Templeton US 107 10,847.9 4 Vanguard US 44 8,575.1 5 Prudential/M&G GB 117 7,847.0 6 Standard Life GB 90 7,395.3 7 Schroders GB 200 6,251.2 8 Goldman Sachs US 101 5,819.5 9 Intesa SP IT 463 5,561.4 10 Nordea SE 261 5,432.2 11 Neuberger Berman US 21 5,285.1 12 BNY Mellon US 203 5,100.1 13 Pioneer IT 439 5,077.3 14 Invesco US 142 4,105.0 15 Baillie Gifford GB 29 4,063.8 16 Polar Capital GB 16 3,585.9 17 UBP CH 72 3,572.2 18 BP Cooperativa IT 48 3,380.4 19 Santander ES 261 3,322.4 20 Wellington US 45 3,295.2 21 MMC/Mercer US 39 3,083.8 22 Leonardo IT 29 3,058.7 23 Stone Harbor US 14 3,044.8 24 Babson US 5 3,010.9 25 MFS US 38 2,966.0

TOP 25 3,514 167,435.9 REST 26,889 109,996.0 TOTAL 30,403 277,431.8



10

Top 2542%

Rest58%

FIGURE 12

FIGURE 13

TOP 25 FUNDS BY ESTIMATED NET SALES IN 2013 (€M)

MARKET SHARE OF BEST-SELLING 25 FUNDS

PAN-EUROPEAN FUND LEADERS SALES

RANK MASTER GROUP NAT FUND NAME DOMICILE LAUNCH DATE TYPE ENS 2013

1 Fr Templeton US Templeton Global Total Return Fund LU Aug-03 Bnd 6,737.3 2 Prudential/M&G GB M&G Optimal Income Fund UK Nov-06 Bnd 5,541.8 3 Standard Life GB Standard Life Global Absolute Return Strategies UK Jan-08 Mix 4,215.4 4 JP Morgan US JPMorgan Investment Funds - Global Income LU Dec-08 Mix 3,938.5 5 Prudential/M&G GB M&G Global Dividend UK Jul-08 Eq 3,695.0 6 ING NL ING (L) Renta Fund Global High Yield LU Apr-01 Bnd 3,493.6 7 PIMCO US PIMCO GIS Income Fund IE Nov-12 Bnd 3,183.5 8 Schroders GB Schroder ISF-Global Multi-Asset Income LU Apr-12 Mix 2,841.1 9 SKY Harbor US SKY Harbor U.S. Short Duration High Yield LU Apr-12 Bnd 2,636.1 10 JP Morgan US JPMorgan Funds - Income Opportunity Fund LU Jul-07 Bnd 2,609.5 11 Standard Life GB Standard Life Global SICAV Absolute Return Strategies LU Jan-11 Mix 2,573.3 12 Baillie Gifford GB Baillie Gifford Diversified Growth UK Dec-08 Mix 2,571.9 13 Morgan Stanley US Morgan Stanley-Diversified Alpha Plus Fund LU Jun-08 Mix 2,536.8 14 BlackRock US BlackRock Global Funds - Global Allocation Fund LU Jul-93 Mix 2,513.6 15 Santander ES Santander Fondepositos, FI SP Mar-08 Bnd 2,506.8 16 Baring US Baring Dynamic Asset Allocation Fund IE Jan-07 Mix 2,497.6 17 Allianz GI DE Allianz Income and Growth LU Jun-11 Mix 2,403.4 18 Polar Capital GB Polar Capital Funds Plc - Japan Fund IE Oct-01 Eq 2,358.8 19 Neuberger Berman US Neuberger Berman High Yield Bond Fund IE May-06 Bnd 2,333.5 20 ETHENEA LU Ethna-AKTIV E LU Oct-01 Mix 2,329.7 21 PIMCO US PIMCO GIS Diversified Income Duration Hedged Fund IE May-11 Bnd 2,257.0 22 AXA/AB FR AllianceBernstein SICAV - Select US Equity Portfolio LU Oct-11 Eq 2,177.0 23 PIMCO US PIMCO GIS Unconstrained Bond Fund IE Oct-08 Bnd 2,129.3 24 BlackRock US BlackRock UK Equity Tracker UK Jul-05 Eq 2,121.0 25 JP Morgan US JPMorgan Funds - JF Asia Pacific Income Fund LU Jun-01 Mix 2,106.0

TOTAL TOP 25 74,307.5 REST 104,179.9 TOTAL 161,357.3



11

PRODUCT THEMESEXCHANGE TRADED FUNDS

FIGURE 14

FIGURE 15

TOP 10 MASTER GROUPS BY SALES IN 2013 (€M)

TOP 10 FUNDS BY SALES IN 2013 (€M)

RANK MASTER GROUPS NAT ASSETS DEC 2013 ENS 2013

1 BlackRock US 145,538.5 12,407.1 2 Vanguard US 3,106.7 2,659.9 3 State Street US 8,371.6 2,452.9 4 Source US 9,889.7 2,074.0 5 UBS CH 11,291.3 1,595.4 6 Amundi FR 11,309.5 797.1 7 Deka DE 5,457.6 673.7 8 ThinkCapital NL 721.2 557.2 9 Natixis FR 824.3 230.5 10 Invesco US 1,209.6 174.6

TOTAL TOP 10 197,720.1 23,622.5 TOTAL 289,537.3 13,824.0

RANK MASTER GROUPS FUND NAME ENS 2013

1 BlackRock iShares MSCI Japan EUR Hedged UCITS ETF 1,999.7 2 Vanguard Vanguard S&P 500 UCITS ETF 1,658.4 3 BlackRock iShares Euro Government Bond 3-5yr UCITS ETF 1,115.9 4 BlackRock iShares STOXX Europe 600 (DE) 898.2 5 BlackRock iShares MSCI World UCITS ETF (Inc) 869.0 6 BlackRock iShares EURO STOXX 50 UCITS ETF (Inc) 864.0 7 BlackRock iShares $ Treasury Bond 1-3yr UCITS ETF 779.2 8 BlackRock iShares Euro Corporate Bond UCITS ETF 774.0 9 DeAWM Db x-trackers II iBoxx Sovereigns Eurozone Yield Plus UCITS ETF 731.4 10 Amundi Amundi Govt Bond Lowest Rated EuroMTS invest. Grade UCITS ETF 712.7

TOTAL TOP 10 10,402.4 TOTAL 13,824.0


12

PRODUCT THEMESBONDS USD CORP. HIGH YIELD

FIGURE 16

FIGURE 17




1 Neuberger Berman US 9,749.2 2,849.4 2 SKY Harbor US 3,813.6 2,742.6 3 AXA/AB FR 18,297.3 2,602.4 4 Allianz GI DE 5,544.8 1,589.3 5 Goldman Sachs US 2,113.4 1,197.3 6 UBI IT 1,491.5 1,165.6 7 BlackRock US 4,936.2 763.1 8 UBS CH 3,986.3 748.2 9 Pioneer IT 1,568.0 610.7 10 UBP CH 913.7 487.1

TOTAL TOP 1O 52,414.0 14,755.7 TOTAL 87,908.1 13,734.9


1 SKY Harbor SKY Harbor U.S. Short Duration High Yield Fund 2,636.1 2 Neuberger Berman Neuberger Berman High Yield Bond Fund 2,333.5 3 Allianz GI Allianz Global Investors Fund - Allianz US High Yield 1,589.3 4 AXA/AB AXA World Funds - US High Yield Bonds 1,547.1 5 AXA/AB AXA IM FIIS - US Short Duration High Yield 1,269.4 6 Goldman Sachs GS Global High Yield Portfolio 1,244.5 7 UBI UBI SICAV - High Yield Bond 1,165.6 8 Pioneer Pioneer Funds - US High Yield 610.7 9 UBS UBS (Lux) Bond Sicav - USD High Yield (USD) 518.2 10 Neuberger Berman Neuberger Berman Short Duration High Yield Bond 515.9

TOTAL TOP 1O 13,430.3 TOTAL 13,734.9


13

PRODUCT THEMESEQUITIES EUROPE

FIGURE 18

FIGURE 19




1 BlackRock US 18,490.5 5,658.4 2 Fr Templeton US 6,245.9 2,623.7 3 Invesco US 4,814.9 2,002.2 4 Alken GB 4,699.1 1,475.0 5 MFS US 3,332.7 1,344.7 6 JP Morgan US 5,423.1 1,254.1 7 Métropole FR 2,335.4 1,060.6 8 Henderson Global GB 3,646.0 1,003.8 9 Prudential/M&G GB 1,549.3 989.0 10 ABN AMRO NL 1,028.9 854.8

TOTAL TOP 1O 51,565.9 18,266.2 TOTAL 230,961.9 25,567.5


1 Fr Templeton Franklin European Growth Fund 1,872.5 2 BlackRock BlackRock Global Funds - European Fund 1,547.4 3 Alken Alken Fund - European Opportunities 1,475.0 4 Invesco Invesco Pan European Equity Fund 1,388.8 5 MFS MFS Meridian - European Value Fund 1,193.4 6 Métropole Métropole Sélection 1,076.4 7 Prudential/M&G M&G European Strategic Value Fund 969.7 8 BlackRock iShares STOXX Europe 600 898.2 9 BlackRock BlackRock Europe Equity Index Fund 819.8 10 BlackRock BlackRock Global Funds - European Value Fund 779.2

TOTAL TOP 1O 12,020.4 TOTAL 25,567.5


14

Next 10 sectors

28%

16-25 sectors

15%

Top 5 sectors

35%

Rest22%

RANK FUND SECTOR # FUNDS ENS 2013

1 Asset Allocation 288 18,078.82 Target Maturity Euroland 114 15,532.23 Target Maturity Other 53 10,136.54 Equities Global 123 8,141.45 Bonds Global Currencies 67 6,411.96 Protected Fund 144 6,244.67 Bonds Flexible 53 6,086.18 Fund of Funds Asset Allocation 170 5,869.49 Fund of Funds Guaranteed 52 5,777.710 Guaranteed Fund 57 5,336.711 Equities Emerging Markets 62 3,576.012 Bonds Speciality 38 3,071.513 Equities Europe 46 2,939.014 Bonds Global Corporates 19 2,896.915 Fund of Funds Bonds 40 2,836.516 Fund of Funds Equities Global 27 2,754.617 Equities North America 53 2,683.918 Money Market USD 4 2,482.919 Bonds EUR 43 2,482.620 Equities Speciality 64 2,462.421 Bonds EUR Short-Term 20 2,252.522 Money Market EUR 14 2,199.223 Derivatives 37 2,166.524 Mixed Assets Balanced 54 2,070.125 Speciality 55 1,954.1

TOP 25 1,735 126,444.0TOTAL 2,655 163,343.3

PRODUCT DEVELOPMENTNEW FUNDS BY SECTOR

FIGURE 20

FIGURE 21

TOP 25 SECTORS OF NEW FUNDS (€M)

MARKET SHARE OF LEADING SECTORS OF NEW FUNDS


15

CROSS-BORDER PROGRESSGROUP WINNERS

FIGURE 22 TOP 25 INTERNATIONAL GROUPS BY ESTIMATED NET SALES IN 2013 (€M)


RANK MASTER GROUP NAT # FUNDS ASSETS DEC 2013 ENS 2013

1 BlackRock US 428 273,788.5 29,919.22 JP Morgan US 190 85,211.5 20,571.63 Prudential/M&G GB 72 64,985.7 11,920.04 Fr Templeton US 94 127,143.7 10,548.15 Invesco US 92 31,368.9 8,235.16 Schroders GB 122 63,870.2 6,888.57 Vanguard US 37 37,479.5 6,398.28 Goldman Sachs US 101 32,497.6 5,819.59 Neuberger Berman US 21 13,099.8 5,285.110 Nordea SE 90 28,546.1 4,055.011 Amundi FR 205 37,257.0 3,874.912 KBC BE 74 12,971.1 3,828.713 Polar Capital GB 16 7,119.5 3,585.914 Wellington US 45 17,087.7 3,295.215 Allianz GI DE 50 18,049.9 3,192.716 BNY Mellon US 60 18,079.9 3,185.917 ING NL 96 27,845.3 3,169.118 Henderson Global GB 32 14,483.4 3,111.019 MMC/Mercer US 39 13,466.2 3,083.820 Stone Harbor US 14 12,958.4 3,044.821 Babson US 5 4,844.6 3,010.922 MFS US 38 22,001.8 2,966.023 Muzinich US 11 13,456.6 2,961.724 State Street US 96 17,021.9 2,749.125 SKY Harbor US 2 3,813.6 2,742.6

TOP 25 2,030 998,448.5 157,442.3REST 7,597 1,395,954.4 53,775.4TOTAL 9,627 2,394,402.9 211,217.7


16

FIGURE 23 GROUP POSITIONING BY SALES AND PERFORMANCE CONTRIBUTION TO ASSET GROWTH IN 2013 (€M)

Stone HarborWellington

Goldman Sachs

Fr TempletonNB

Invesco

Schroders

Amundi JP MorganNatixis Vanguard

Prudential/M&G

Fidelity

BlackRock

-10,000

-5,000

0

5,000

10,000

15,000

20,000

-10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Sales contribution (€m)

Perf

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ance

con

trib

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n (€

m)


CROSS-BORDER PROGRESSGROUP WINNERS


17

CROSS-BORDER PROGRESSFOREIGN SHARE OF SALES IN EUROPE

-10,000

0

10,000

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50,000

IT CH DEU SP FR BE UK AU NL SWE

Domestic Foreign

FIGURE 24 NET SALES OF FOREIGN GROUPS BY MARKET IN 2013 - ALL FUNDS (€M)

-8,000

-6,000

-4,000 -2,000

0

2,000

4,000

6,0008,000

10,000

12,000

IT SP CH BE UK NL FR AU DEU SWE

Domestic Foreign

FIGURE 25 NET SALES OF FOREIGN GROUPS BY MARKET IN 2013 - EQUITY ONLY (€M)

-10,000

-5,000

0

5,000

10,000

15,000

20,000

IT CH DEU FR BE SP AU UK SWE NL

Domestic Foreign

FIGURE 26 NET SALES OF FOREIGN GROUPS BY MARKET IN 2013 - BOND ONLY (€M)

Note: Excludes money market funds & ETFs 1. Foreign activity is actual sales as measured by the Lipper SalesWatch

Confidential Service. 2. The 50 members are estimated to account for 75-80% of the total

cross-border sales activity.


18

CROSS-BORDER PROGRESSDOMESTIC VS. FOREIGN SECTORS

FIGURE 27 TOP 5 DOMESTIC AND FOREIGN SECTORS IN THE MAJOR MARKETS

Note: Excludes money market funds & ETFs

FRANCE

DOMESTIC ENS 2013 FOREIGN REAL SALES 20131 Equities Europe 3,447.6 Bonds USD Corp. High Yield Confidential2 Short Term Dynamic 2,951.9 Bonds Emerging Markets - Local Currency3 Bonds EUR Short-Term 1,971.6 Equities Europe Mid/Small Caps4 Mixed Assets Conservative 1,889.0 Equities Global5 Convertible Bonds & Options 1,770.4 Asset Allocation

GERMANY

DOMESTIC ENS 2013 FOREIGN REAL SALES 20131 Asset Allocation 5,872.3 Bonds Global Currencies Confidential2 Mixed Assets Conservative 4,314.4 Bonds Flexible3 Bonds CNY 1,397.4 Bonds EUR Short-Term4 Bonds Global Currencies 1,059.5 Equities North America5 Bonds EUR Short-Term 828.2 Equities Euroland

iTALY

DOMESTIC ENS 2013 FOREIGN REAL SALES 20131 Asset Allocation 16,750.0 Bonds Global Currencies Confidential2 Target Maturity Other 5,573.3 Bonds Flexible3 Bonds USD Corp. High Yield 1,165.6 Equities Europe4 Bonds USD Corp. Inv. Grade 1,161.7 Equities Global5 Equities Speciality 1,044.9 Asset Allocation

SWITZERLAND

DOMESTIC ENS 2013 FOREIGN REAL SALES 20131 Bonds Global High Yield 1,830.3 Bonds Flexible Confidential2 Mixed Assets Conservative 1,305.6 Equities Europe3 Equities Emerging Markets 1,083.2 Bonds USD Corp. High Yield4 Bonds Global Corporates 879.4 Bonds Speciality5 Bonds Global Currencies 829.9 Bonds Global Currencies

UNITED KINGDOM

DOMESTIC ENS 2013 FOREIGN REAL SALES 20131 Asset Allocation 8,576.7 Asset Allocation Confidential2 Mixed Assets Balanced 3,350.4 Bonds Flexible3 Equities Global 2,109.8 Bonds Global Currencies4 Bonds Global Currencies 1,915.4 Equities Europe5 Equities Japan 1,900.4 Bonds Speciality


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FOOTNOTES1. All data as at 31 Dec 2013 unless otherwise stated.

2. ‘International’ fund market. Lipper 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, commodities 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.

8. ENS stands for estimated net sales.

9. ETFs are included in Lipper’s database on mutual funds, but this excludes exchange-traded commodity products that are not mutual funds.

10. References to foreign activity relate to actual sales as measured by Lipper’s SalesWatch confidential service. The 50 SalesWatch members are estimated to account for 75-80% of total cross-border sales activity

REUTERS/KHAM


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REUTERS/YURIKO NAKAO

PRODUCT MANAGER, LIPPER FUNDFILE:JÉRÔME COUTEUR [email protected]

SABINA GRABOWSKA [email protected]

PRODUCT MANAGER, LIPPER SALESWATCH:BARBARA FERRARESI [email protected]

EDITORIALDETLEF GLOW [email protected]

JAKE MOELLER [email protected]

CONTACT USLIPPER DATABASES FEATURED:FUNDFILE - http://bit.ly/LipperFundFile SALESWATCH - http://bit.ly/LipperSalesWatch

DESIGNED BY:NAOMI HANDKE

Lipper European fund market review 2014

Economy & Finance

Transcript of Lipper European fund market review 2014