European fund distribution 2014

European fund distributionMarket intelligence: fund flows that matter September 2014

ContactsLaurent DenayerPartner+352 42 124 8340laurent.denayer@lu.ey.com

Rafael AguileraExecutive Director+352 42 124 8365rafael.aguilera@lu.ey.com

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EY analysis is based on fund data provided by

Regulatory intelligence

Fund registration

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EYGFD

European market trends European distribution markets’ growth over the 12-month period ending 31 July 2014

European market features

The heat map above illustrates the growth of the largest European distribution markets based on variations of the total net assets held by local investors in domestic and cross-border funds available for sale. The annual growth is defined by the ratio between the sum of all fund flows over the 12-month period ending 31 July 2014 and the total net assets held by local investors at the beginning of the 12-month period. The bubble size reflects the size of the market as at July 2014.

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Annual growth of local distribution markets

-9% -5% -1% 1% 5% 9%

Bubble scaling for market insight (total net assets)About €500 billionAbout €250 billion<€50 billion

-30

-20

-10

0

10

20

30

40

DE FR GB IT CH ES SE LU NL IE AT NO DK BE FI PT

-50

-40

-30

-20

-10

0

10

20

30

40

50

08/2013 09/2013 10/2013 11/2013 12/2013 01/2014 02/2014 03/2014 04/2014 05/2014 06/2014 07/2014

-20

-10

0

10

20

30

40

50

1 2 3 4 5 6 7

15%7% 5% 6% 9%

17%8% 15%

6% 9% 13%2% 5% 9% 4%

20%

14%

9% 9%20% 11%

19%

14%

20%

9%9%

10%

4%7%

43%

6%

15%

12%32%

14%

8%8%

11%

9%

3%

12% 11% 6%

13% 3%

1%

10%

13%

27%21%

23%

40%

35%

31%

19%

39%

29%39% 39%

41% 47%

19%

36%

31%

31% 31%

48%

25%37%

22%

49%

23%

44%32% 32%

39% 39%27%

44%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DE FR GB IT CH ES SE LU NL IE AT NO DK BE FI PT

33%

33%

23%

4% 4%

3%

35%

27%

12%

16%

3% 3% 4%

DE

FR

GB

IT

CH

ES

SE

LU

NL IE

AT

NO

DK

BE

FI

PT GR

PL

CZ

LI

GG

HU

Net fund flows per country of distribution Allocation per fund domicile 08/2013-07/2014

excluding money market funds

European market DNAMarket share* per asset class based on AuM 07/2014

for selected European distribution markets

Market share per asset class in EuropeRetail vs. institutional based on AuM 07/2014

Monthly net fund flows per asset classAllocation per asset class 08/2013-07/2014

Net fund flows per SRRI class Year-to-date (YtD) and 12-month analysis

€ bi

llion

s€

billi

ons

Synthetic risk and reward indicators

€ bi

llion

s

EquityMoney marketAlternativeOthers

Fixed incomeAllocation/balancedGuaranteed

Net fund flows 08/2013-07/2014 (12 months)Net fund flows 01/2014-07/2014 (YtD)

Other domicilesIE domiciledLU domiciledDomestic funds

EquityFixed incomeMoney marketAllocation/balancedAlternativeGuaranteedOthers

EquityFixed incomeMoney marketAllocation/balancedOthers

* Market shares may not sum to 100% due to rounding

Retail share classes(outer circle)€4.8 billion

Institutional share classes(inner circle)€1.3 billion

Recently (YtD), low-risk funds could again attract new money after having suffered outflows for a long time. Risk categories four and five continue to attract most of the inflows.

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