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1 THOMSON REUTERS LIPPER EUROPEAN FUND FLOWS REPORT: June 2017 Please attribute the content to Detlef Glow, Head of EMEA Research at Thomson Reuters Lipper and the author of this report.

2 EXECUTIVE SUMMARY June 2017: Diversification and returns were key drivers of European fund flows June 2017 was the sixth consecutive month showing a positive picture for long-term mutual funds. European fund promoters enjoyed net inflows into bond funds ( bn), followed by mixed-asset funds ( bn), alternative UCITS products (+ 4.3 bn), and real estate funds (+ 0.6 bn) as well as commodity funds ( bn). Meanwhile, equity funds (- 0.3 bn) and, once again, other funds (- 1.2 bn) faced net outflows. Opposite to the long-term products, money market products ( bn) posted massive net outflows for June. In line with their actively managed peers ETFs investing in money market instruments posted small net outflows (- 0.1 bn). This flow pattern led the overall fund flows to mutual funds in Europe to net outflows of 3.5 bn for June and a positive bn for 2017 so far. Luxembourg ( bn) was the fund domicile with the highest net inflows for June, followed by Ireland (+ 5.6 bn), the United Kingdom (+ 2.7 bn), the Netherlands (+ 1.9 bn), and Switzerland (+ 1.6 bn). Bond Global (+ 7.2 bn) was the best selling sector among long-term funds. PIMCO, with net sales of 6.0 bn, was the best selling fund promoter for June overall, ahead of Aegon (+ 2.2 bn) and BNY Mellon (+ 1.9 bn). The ten best selling long-term funds gathered at the share-class level total net inflows of 7.6 bn for June. AEGON Diversified Equity Fund (+ 1.3 bn) was the best selling individual longterm fund for June.

3 EUROPEAN FUND FLOWS, JUNE 2017 European Fund-Flow Trends, June 2017 June was the sixth consecutive month showing a positive picture for long-term mutual funds. European fund promoters enjoyed net inflows into bond funds ( bn), followed by mixed-asset funds ( bn), alternative UCITS products (+ 4.3 bn), and real estate funds (+ 0.6 bn) as well as commodity funds ( bn). Meanwhile, equity funds (- 0.3 bn) and, once again, other funds (- 1.2 bn) faced net outflows. These fund flows added up to overall net inflows of 35.7 bn into long-term investment funds for June. ETFs contributed 7.8 bn to these flows. Money Market Products Opposite to the long-term products, money market products ( bn) posted massive net outflows for June. In line with their actively managed peers ETFs investing in money market instruments posted small net outflows (- 0.1 bn). This flow pattern led the overall fund flows to mutual funds in Europe to net outflows of 3.5 bn for June and a positive bn for 2017 so far. Money Market Products by Sector Money Market EUR Leveraged (+ 1.0 bn) was the best selling money market sector for June, followed by Money Market CHF (+ 0.5 bn) and Money Market SEK (+ 0.1 bn). At the other end of the spectrum Money Market EUR ( bn) suffered again the highest net outflows overall, bettered by Money Market USD ( bn) and Money Market GBP (- 6.5 bn). Comparing this flow pattern with the flow pattern for May 2017 showed that European investors decreased their overall money market positions by further decreasing their positions in the euro as well as in their former favorites the British pound sterling and the U.S. dollar. These shifts might have been caused by asset allocation decisions as well as for other reasons such as cash dividends or payments, since money market funds are also used by corporations as replacements for cash accounts. Graph 1: Estimated Net Sales by Asset Type, June 2017 (Euro Billions)

4 Fund Flows by Sectors Within the segment of long-term mutual funds Bond Global (+ 7.2 bn) was once again the best selling sector, followed by Bond EUR Short Term (+ 3.4 bn), Bond Emerging Markets Global in Hard Currencies (+ 2.4 bn), and Bond Emerging Markets in Local Currencies (+ 2.3 bn) as well as Mixed Asset EUR Balanced-Global (+ 2.1 bn). Graph 2: Ten Top Sectors, June 2017 (Euro Billions) At the other end of the spectrum Bond USD High Yield (- 1.8 bn) suffered the highest net outflows from longterm mutual funds, bettered somewhat by Equity US (- 1.8 bn) and Bond DKK (- 1.4 bn) as well as Equity Denmark (- 1.0 bn) and Target Maturity Bond EUR (- 0.8 bn). Graph 3: Ten Bottom Sectors, June 2017 (Euro Billions)

5 Fund Flows by Markets (Fund Domiciles) Single fund domicile flows (including those to money market products) showed in general a positive picture for June, with 20 of the 34 markets covered in this report showing net inflows and 14 showing net outflows. Luxembourg ( bn) was the fund domicile with the highest net inflows, followed by Ireland (+ 5.6 bn), the United Kingdom (+ 2.7 bn), the Netherlands (+ 1.9 bn), and Switzerland (+ 1.6 bn).on the other side of the table it was not surprising that France was, with regard to the flows in the money market segment, the single fund domicile with the highest net outflows ( bn), bettered by Denmark ( bn) and Norway (- 0.3 bn). Graph 4: Estimated Net Sales by Fund Domiciles, June 2017 (Euro Billions) Within the bond sector, funds domiciled in Luxembourg ( bn) led the table for June, followed by those domiciled in Ireland ( bn), France (+ 2.8 bn), the United Kingdom (+ 1.1 bn), and Finland (+ 0.4 bn). Bond funds domiciled in Denmark (- 5.1 bn), Spain (- 0.5 bn), and Italy (- 0.4 bn) stood at the other end of the table. For equity funds, products domiciled in Ireland (+ 3.1 bn) led the table for June, followed by funds domiciled in Luxembourg (+ 1.7 bn), the Netherlands (+ 1.6 bn), and France (+ 1.2 bn) as well as Spain (+ 0.2 bn). Meanwhile, Denmark (- 7.4 bn), Switzerland (- 0.4 bn), and the United Kingdom (- 0.2 bn) were the domiciles with the highest net outflows from equity funds. With regard to mixed-asset products Luxembourg (+ 4.4 bn) was the domicile with the highest net inflows, followed by funds domiciled in the United Kingdom (+ 1.3 bn), Spain (+ 0.8 bn), Italy (+ 0.7 bn), and France (+ 0.7 bn). On the other side of the table funds domiciled in Jersey showed the highest net outflows (- 0.2 bn), bettered by funds domiciled in Poland (- 0.1 bn) and Guernsey ( bn). Ireland (+ 2.2 bn) was the domicile with the highest net inflows into alternatives for June, followed by Luxembourg (+ 1.2 bn), France (+ 0.7 bn), and the United Kingdom (+ 0.3 bn) as well as Guernsey (+ 0.1 bn). Italy (- 0.4 bn), bettered by Denmark (- 0.1 bn) and the Netherlands ( bn), stood at the other end of the table.

6 Fund Flows by Promoters PIMCO, with net sales of 6.0 bn, was the best selling fund promoter for June overall, ahead of Aegon (+ 2.2 bn) and BNY Mellon (+ 1.9 bn). Table 1: Ten Best Selling Promoters, June 2017 (Euro Billions) Considering the single-asset bases, PIMCO (+ 6.0 bn) was once again the best selling promoter of bond funds for June, followed by BlackRock (+ 3.3 bn), Amundi (+ 1.1 bn), and AB (+ 1.1 bn) as well as Eurizon Capital (+ 1.0 bn). Within the equity space BlackRock (+ 2.0 bn) stood at the head of the table for June, followed by Aegon (+ 1.2 bn), UBS (+ 0.6 bn), and Amundi (+ 0.6 bn) as well as Natixis (+ 0.6 bn). JP Morgan (+ 0.8 bn) was the leading promoter of mixed-asset funds in Europe for June, followed by Union Investment (+ 0.6 bn), M&G (+ 0.6 bn), and Amundi (+ 0.6 bn) as well as Invesco (+ 0.5 bn). GAM (+ 0.7 bn) was once again the leading promoter of alternatives funds for the month, followed by Aqr Capital Management (+ 0.4 bn), Bank of America Merrill Lynch (+ 0.4 bn), and Legg Mason (+ 0.3 bn) as well as Insight (+ 0.3 bn). Best Selling Funds The ten best selling long-term funds gathered at the share-class level total net inflows of 7.6 bn for June. The split of the ten best selling funds by asset type was in line with the overall sales numbers. Since bond funds dominated the overall sales numbers, it was not surprising that bond funds (+ 3.7 bn) also dominated the sales table for the single funds, followed by equity funds (+ 2.6 bn) and mixed-asset funds (+ 1.2 bn). Table 2: Ten Best Selling Long-Term Funds, June 2017 (Euro Millions)

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