Global fund distributionMarket intelligence: fund flows that matter June 2015

Market insight

Evolution of net assets (04/2014 — 03/2015) Distribution markets (03/2015)

** No growth figure has been calculated for CHN, CYM, HKG, IND, and THA markets.

*** CHN and China refer to the Mainland China market.Square scaling for market insight (03/2015)ca.US$20b of net assets

Regional insight

EY Contacts

EY analysis is based on fund data provided by

These heat maps illustrate the growth of the largest distribution markets based on the variation of the total net assets held by local investors in open-ended domestic and cross-border funds available for sale. The rectangle’s size gives an indication of the market size in March 2015. The rectangle’s color, the growth, is defined by the sum of flows during the 12 month period ending March 2015 as a percentage of the total net assets in March 2014.

“

”

0 500 1000 1500 2000 2500 3000 3500 148005000 1,500 2,0001,000 2,500 3,000 14,8003,500

Locally net assets distributed Locally net assets domiciled

Net assets in US$b

Annual growth of local distribution markets

-12% -9% -6% -3% 0% 3% 6% 9% 12%

Regulatory intelligence

Fund registration

Market intelligence

Fund reporting

EYGFD

Laurent DenayerPartner, Global Fund Distribution Leader+352 42 124 8340laurent.denayer@lu.ey.com

France MessierManager+352 42 124 8534france.messier@lu.ey.com

To learn more, visit ey.com/GFD

Connect with us on LinkedIn EY GFD - Global Fund Distribution

http://bit.ly/GFD-EY

USA

Singapore

South Korea

Japan

Mexico

Finland

Israel

Switzerland

Italy

Chile

Austria

France

United Kingdom

Germany

India

Luxembourg

The Netherlands

Ireland

South Africa

Thailand

Spain

Canada

Norway

Denmark

New Zealand

Hong Kong

Brazil

Australia

Malaysia

China***

Sweden

Belgium

Taiwan

Cayman Islands

Morocco

USA

SGP

KOR

JPN

MEX

FIN

ISR

CHE

ITA

CHL

AUT

FRA

GBR

DEU

IND

LUX

NLD

IRL

ZAF

THA

ESP

CAN

NOR

DNK

NZL

HKG

BRA

AUS

MYS

CHN

SWE

BEL

TWN

CYM

MAR

* Market share and net assets (03/2015)

53.4%US$15,211 b*

North America

31%US$8,442b*

Europe

7.6% US$2,072b*

Asia**4.6%US$1,302b*

LatinAmerica**

2.8% US$786b*

Oceania

Africa0.6% US$167b*

DEU

USA

FRA

CAN

GBR

CHE

ITA

ESP

SWE

NLD

LUX

IRL

AUT NOR

DNKBEL

FINOthers Europe

CHN**,***

KOR JPN

TWN

ISR MYS

HKG**

SGPIND**

Others Asia

BRA

CHL MEX

AUS

ZAF

MARCYM**

NZL

THA**

CoreNon-core

EY G

FD coverage

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Australia

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BahrainBelgiumBrazilCanadaChileColom

biaCzech RepublicDenm

arkFinlandFranceGerm

anyH

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IndiaIrelandItalyJapanLuxem

bourgM

acaoM

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Laurent Denayer

Partner, Global Fund Distribution Leader+352 42 124 8340laurent.denayer@

lu.ey.com

Fund Registration Services

Rafael Aguilera

Executive Director+352 42 124 8365rafael.aguilera@

lu.ey.com

Fund Tax Reporting Services

Maria Scherer

Executive Director+352 42 124 7279m

aria.scherer@lu.ey.com

Fund Reporting Services

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anager+352 42 124 8139sebastien.founy@

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Asset Flows by Morningstar RatingTM ($Mil)

Morningstar Asset Flows by Firm Name Estimated Net Flow Net Assets

Firm Name 1 Year ($Mil) ($Bil)

Vanguard 98,718 165,894

Goldman Sachs 30,762 56,543

BlackRock 28,264 92,006

iShares 25,074 50,707

Dimensional 16,190 28,814

JPMorgan 13,328 48,676

Morgan Stanley 12,385 27,168

MFS 10,583 19,475

Oakmark 7,237 15,859

State Street -1,008 26,206

Date as of June 2014. Source: Morningstar, Inc.

To learn more and to receive a free monthly asset flows commentary,

enabling you to stay current with industry trends, please visit

http://global.morningstar.com/MorningstarAssetFlows

Morningstar is a leading provider of independent investment research

in North America, Europe, Australia, and Asia. The company offers an

extensive line of products and services for individual investors,

financial advisors, asset managers, and retirement plan providers and

sponsors. Morningstar provides data on approximately 473,000 investment

offerings, including stocks, mutual funds, and similar vehicles, along with

real-time global market data on more than 12 million equities, indexes,

futures, options, commodities, and precious metals, in addition to foreign

exchange and Treasury markets. Morningstar also offers investment

management services through its investment advisory subsidiaries and had

approximately $169 billion in assets under advisement and management

as of June 30, 2014. The company has operations in 27 countries.

Morningstar Asset Flows Data ServiceMorningstar launched its asset flows data service, a tool for monitoring

current asset flows and market share data, in March 2009. Morningstar’s

asset flows data service enables industry professionals to review fund

flows by sector, fund type, fund group, and legal structure to analyse

investment trends and investor sentiment across the asset management

industry. It is available within Morningstar Direct,TM the company’s global

institutional research platform, as well as Morningstar’s data feed

solution, Morningstar Licensed Data.

Morningstar also provides bespoke asset flow datasets (for specific

regions) including:

By firm: Compare inflows and outflows of a bespoke list of asset managers.

By individual firm fund flows: Diagnose month by month fund flows by

asset manager.

By asset curve: Analyse fund flows between equity, fixed income,

alternative, allocation and money market funds.

By investor reaction: Use fund flows to assess investor response to major

market events.

By country: Compare UK investor habits with a variety of domiciles

including, Australia, France, Germany, Italy, Spain, Sweden, Switzerland,

and the United States.

Morningstar, Inc.

©2014 Morningstar, Inc. All rights reserved. The Morningstar name and logo are registered marks of Morningstar. Marks used in conjunction with Morningstar products or services are the property of Morningstar or its subsidiaries.

3

3

3

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195,413

309,159Q Q Q Q QQ Q Q QQ Q QQ QQ -32,783

-122,897

-92,539

EY’s global fund flow trends and analysis are powered by fund data provided by Morningstar. The EY Global Fund Distribution (GFD) reports use EY’s proprietary methodology, developed to offer a unique perspective on global fund flows, that also considers SRRI volatility levels, TER bands, fund categories and more. By looking beyond changes in total net assets to looking at estimated fund flows, asset managers and servicers gain insight on market movements dividing fund flows into specific fund categories and investment regions. This information enables fund groups to better plan fund distribution and marketing strategies.

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