Q IPREO REGIONAL FLOW OF FUNDS SERIES

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1 Q IPREO REGIONAL FLOW OF FUNDS SERIES

2 Flow of Funds: Market Overview Q3-17 Western European () equity fund flows remained strong and positive (+$43.1B), but the pace of inflows decelerated from the preceding quarter. The bulk of net inflows into the region continued to be driven by North American managers (albeit at a slower pace) whilst the pace of UK & Ireland inflows doubled over the same period. Index investors continued to drive inflows for a second consecutive quarter with 4 of the top 5 buyers being Index driven. Blackrock Fund Advisors and Vanguard led North American buying whilst Lyxor led European buying. All macro sectors were net beneficiaries of fund inflows with cyclicals topping the list i.e. Financials (+$15.9B) and Utilities (+$6.7B). The Italian market posted strong net inflows +$5.0B in Q3-17 accelerating from +$3.7B in the preceding quarter. North America topped inflows, +$2.3B led by Capital World, Capital Research and Blackrock. Similar to activity that saw Financials and Utilities top inflows, three of the top five most bought stocks in were in the Utilities and Financials sectors i.e. Enel +$1.3B (Utilities) as well as UniCredit (+$1.3B) Financials and Intesa Sanpaolo (+$895M) Financials. Top buyer Capital Research held an overweight position in Intesa Sanpaolo and Enel via the Capital World Growth and Income Fund as well as American Funds - Capital Income Builder Fund. According to the Q3-17 commentary from American Funds Portfolio Series, funds with larger concentrations in companies domiciled outside the U.S. tended to fare better than those with significant holdings in U.S. companies, due in part to currency appreciation versus the U.S. dollar. Eshe Nelson, Economics and Markets Reporter commenting on sterling performance of the Italian Financials notes, "Despite three banks receiving state bailouts in the past year, Italian bank stocks have climbed almost 30% in [Quartz Aug-17]. According to PWC's July 2017 report on The Italian NPL market, Ailing banks are going through a restructuring process, significant banks are engaged in massive NPL deleverage plans, overall the NPL management is passing through a prominent overhaul under new ECB guidelines and the NPL servicers are experiencing a deep evolution and facing consolidation manoeuvres." William Bower, Portfolio Manager of the Fidelity Diversified International Fund which slightly reduced its position in Intensa Sanpaolo states, We likely will stick with financials, where we believe not only that the worst is behind us but that a lot can go right. European financials are sensitive to rising rates; their net interest margins the difference between what is paid on deposits versus charged on loans are historically low; and their costs, well-contained. Also, valuations still don't seem to us priced for much of a recovery. Institutional Investment Flow Highlights Net Change by Region Net Change by Style 3, , , , , , , , , , , , , ,500.0 W. Europe N. America UK & Ireland Scandinavia Asia MENA Other Q4-16 Q1-17 Q2-17 Q ,000.0 Agg Gr./Growth Deep Val./Value Index GARP Specialty Yield Alternative Q4-16 Q1-17 Q2-17 Q3-17 Whilst in Q2-17 UK & Ireland investment flows were relatively flat, in Q3-17 inflows jumped to +$1.6B. This was mainly driven by Standard Life (+$596.6M), Henderson (+$323.5M) and Schroder (+S157.7M). Standard Life was buying into UBI through their Standard Life Investments Global Absolute Return Strategies Fund. Guy Stern Portfolio Manager of John Hancock Funds II - Global Absolute Return Strategies Fund notes, We opened a European equity banks versus EURO STOXX 50 strategy in the fund toward the end of the period. This relative value position expresses our view that the market underestimates favorable implications for the banking segment of a potential interest-rate hike before the end of the European Central Bank s asset purchase program. We also expect European banks to benefit from a reduction in regulatory pressures in the medium term Ownership by Investor Region vs Issuer Region Ownership by Investor Style vs Issuer Region E. Europe 0.3% E. Europe 0.1% Alternative 3.9% Alternative 2.7% Rest of World 1.2% Rest of World 0.6% Yield 2.4% Yield 2.4% MENA 1.4% MENA 1.2% Specialty 2.7% Specialty 1.3% Asia 1.6% Asia 1.1% Scandinavia 7.7% Scandinavia 16.3% GARP 8.4% GARP 6.2% UK & Ireland 18.4% UK & Ireland 16.3% Index 17.8% Index 18.5% W. Europe 35.5% W. Europe 27.7% Deep Val./Value 34.5% Deep Val./Value 37.0% N. America 34.1% N. America 36.7% Agg Gr./Growth 30.2% Scandinavian investors controlled 16.3% of equities whilst in they held 7.7%. Scandinavia is the only region that recorded net outflows of -$143.8M from Italian equities Q3-17 helping contribute to the relative underweighting of Scandinavian ownership in vs the. The key drivers of these outflows were Norges Bank Investment Management -$157.1M, Nordea Investment Management (Denmark) -$100.8M and Danske Capital (Denmark) -$54.4M. leads proportional ownership of Italian equities at 35.5% (7.8 pp off comparable ownership of equities by investors). Key top holders of Italian stocks include top domestic investors UBI Pramerica, Eurizon Capital and Arca Fondi. Passive investors control 26.2% in vs 25.3% of equities. Since Q3-16 Active investors saw a +53.3% increase in ownership just below the +54.9% rise in Passive ownership in the same period. Rising interest in Italian equities is symptomatic of, Investors faith in Europe s economic recovery which has made stocks in the best performers in the G7 so far this year and given the euro s performance against the dollar, s gain is even more impressive in dollar terms, up 27% so far this year, Eshe Agg Gr./Growth 32.0%

3 MOST INVESTED MOST INVESTORS BOUGHT SOLD Flow of Funds: Active vs. Passive Investment (% Chg) Ownership by Orientation vs Issuer Region 60.0% 100.0% 26.2% 25.1% 50.0% 80.0% 40.0% 30.0% 60.0% 20.0% 40.0% 10.0% 20.0% 0.0% Q3-16 Q4-16 Q1-17 Q2-17 Q % 73.8% 74.9% Active Passive Active Passive Most Bought & Sold Sectors - Active Investors Most Bought & Sold Sectors - Passive Investors -1, , , , Basic Materials Consumer Goods Consumer Services Energy Financials Healthcare Industrials Technology Utilities Basic Materials Consumer Goods Consumer Services Energy Financials Healthcare Industrials Technology Utilities Most Bought & Sold Stocks Security Industry Change $M Enel S.p.A. Utilities 1,308.8 UniCredit S.p.A. Banking 1,307.2 Intesa Sanpaolo S.p.A. () Banking Ferrari N.V. Automotive dobank SpA Industrial Goods and Services Assicurazioni Generali S.p.A. Insurance Unione di Banche Italiane S.p.A. Banking Banco BPM S.p.A. Banking Telecom Italia S.p.A. Telecommunications Snam S.p.A. Utilities Includes Active & Passive Investors 4,801.4 Security Industry Change $M Atlantia S.p.A Transportation Societa Iniziative Autostradali e Servizi S.p.A. Transportation Moncler S.p.A. Consumer Non-Durables De'Longhi SpA Consumer Durables Luxottica Group S.p.A. Consumer Non-Durables Aeroporto Guglielmo Marconi Di Bologna SpA Transportation Prada S.p.A. Consumer Non-Durables Recordati Industria Chimica e Farmaceutica S.pBiotechnology and Pharmaceuticals Cerved Information Solutions S.p.A. Industrial Goods and Services Anima Holding S.p.a. Financial Services Includes Active & Passive Investors Top Invested Cities Country / City Total Equity Assets Value Activity # Firms Country / City Total Equity Assets Value Activity # Firms United Kingdom (London) 2,887, , United Kingdom (London) 2,887, , (Milan) 74, , France (Paris) 462, , France (Paris) 462, , United States (New York) 3,618, , Norway (Oslo) 673, , Spain (Madrid) 75, , United States (San Francisco) 2,666, , Luxembourg (Luxembourg) 40, , United States (Malvern) 2,711, , (Milan) 74, , United States (New York) 3,618, , Switzerland (Zürich) 350, , United States (Boston) 4,077, , United States (Boston) 4,077, , United States (Los Angeles) 1,248, , , Germany (Frankfurt) 368, , (Turin) 8, , Canada (Toronto) 751, , () 6, , United States (Chicago) 1,007, , Germany (Frankfurt) 368, , Japan (Tokyo) 768, United Kingdom (Edinburgh) 309, , Switzerland (Geneva) 114, , United States (Chicago) 1,007, , Sweden (Stockholm) 307, , United States (Austin) 419, , () 6, , Includes Active & Passive Investors 149, , Includes Active & Passive Investors 105, ,

4 TOP SELLERS TOP BUYERS TOP HOLDERS Flow of Funds: Top Active & Passive Holders, Buyers & Sellers Firm Country Style Turnover Equity Assets Value Change % Portfolio % Portfolio Chg Norges Bank Investment Management (Norway) SWF Norway Value Low 634, , % -1.4% The Vanguard Group, Inc. P United States Index Low 2,711, , % 3.1% BlackRock Fund Advisors P United States Index Low 1,866, , % 7.6% Capital World Investors (U.S.) United States Value Low 672, , % 28.6% Mediobanca S.p.A. Specialty Low n/a 3, n/a 0.0% BlackRock Advisors (U.K.), LTD P United Kingdom Index Low 167, , % -1.3% Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 395, , % 3.5% Capital Research Global Investors (U.S.) United States GARP Low 457, , , % 53.6% Aabar Investments PJSC SWF United Arab Emirates Growth Medium 3, , % 0.0% Schroder Investment Management, LTD United Kingdom GARP Medium 115, , % 7.5% BlackRock Investment Management (U.K.), LTD United Kingdom Growth Low 367, , % 1.5% People's Bank of China China Growth Low n/a 2, n/a 0.0% Fidelity Management & Research Company United States Growth Low 902, , % -11.5% T. Rowe Price Associates, Inc. United States Growth Low 638, , % -11.3% Anima SGR S.p.A. Value High 14, , % -0.6% BlackRock Asset Management (Deutschland) AG P Germany Index Low 52, , % 7.3% TIAA-CREF Investment Management, LLC United States Growth Low 306, , % -5.0% Dodge & Cox United States Value Low 183, , % -4.3% Baillie Gifford & Company, LTD United Kingdom Growth Low 141, , % -0.8% J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 114, , % 6.8% 71, ,457.8 Firm Country Style Turnover Equity Assets Value Change % Portfolio % Portfolio Chg Capital Research Global Investors (U.S.) United States GARP Low 457, , , % 53.6% Capital World Investors (U.S.) United States Value Low 672, , % 28.6% Standard Life Investments, LTD (U.K.) United Kingdom Growth Medium 67, , % 64.2% BlackRock Fund Advisors P United States Index Low 1,866, , % 7.6% Henderson Global Investors, LTD (U.K.) United Kingdom Growth Medium 56, , % 27.4% The Vanguard Group, Inc. P United States Index Low 2,711, , % 3.1% Lyxor Asset Management SAS P France Index High 69, , % 13.3% Winslow Capital Management, LLC United States Agg. Growth High 18, % Buy-in Northern Cross, LLC United States Value Low 30, % Buy-in Schroder Investment Management, LTD United Kingdom GARP Medium 115, , % 7.5% Allianz Global Investors GmbH Germany Growth Low 79, , % 15.4% BlackRock Asset Management (Deutschland) AG P Germany Index Low 52, , % 7.3% Darsana Capital Partners, L.P. United States Alternative High 2, % Buy-in J.P. Morgan Investment Management, Inc. United States Growth Low 273, % 41.5% Kairos Partners SGR S.p.A. GARP High 1, , % 13.4% Deutsche Asset Management Investment GmbH Germany Value Low 134, , % 12.0% Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 395, , % 3.5% J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 114, , % 6.8% BlackRock International, LTD United Kingdom Value Medium 19, % 175.6% Morgan Stanley Investment Management Inc. United States Growth Medium 63, % 94.0% 43, ,675.3 Firm Country Style Turnover Equity Assets Value Change % Portfolio % Portfolio Chg Fidelity Management & Research Company United States Growth Low 902, , % -11.5% T. Rowe Price Associates, Inc. United States Growth Low 638, , % -11.3% Wellington Management Company, LLP United States Value Low 490, , % -11.2% State Street Global Advisors France S.A. P France Index Medium 19, % -46.2% Harris Associates, L.P. United States Value Medium 112, , % -9.8% Norges Bank Investment Management (Norway) SWF Norway Value Low 634, , % -1.4% Lazard Asset Management, LLC (U.S.) United States Value Medium 93, % -20.2% Exane Asset Management S.A. France Value Very High 4, % -27.0% Fidelity International Limited - FIL Investments International (It GARP High 1, % -11.1% Nordea Investment Management (Denmark) Denmark Value Low 73, % -14.3% TIAA-CREF Investment Management, LLC United States Growth Low 306, , % -5.0% Fideuram Investimenti SGR S.p.A. Value Medium 2, , % -8.5% Columbia Threadneedle Investments (U.K.) United Kingdom Growth Medium 60, % -8.8% Amber Capital UK, LLP United Kingdom Alternative Low % -17.1% AXA Investment Managers Paris S.A. France Growth Low 16, , % -8.4% Dodge & Cox United States Value Low 183, , % -4.3% AKO Capital, LLP United Kingdom Alternative Medium 1, % -13.6% Brandes Investment Partners, L.P. United States Deep Value Low 16, % -12.1% Hexavest, Inc. P Canada Growth High 10, % -46.5% Danske Capital (Denmark) Denmark Growth Medium 21, % -13.9% Includes Investors with EUM greater than $100M. 29, ,555.9 SWF - Sovereign Wealth Fund; HF - Hedge Fund/Alternative; P - Passive Investor

5 Flow of Funds: > Visit Ipreoink.com for more regional flow of funds reports and other insightful articles ABOUT IPREO We work as an extension of our clients' Investor Relations team Ipreo is a leading global provider of financial services technology, data and analytics. We support all participants in the capitalraising process including banks, public and private companies, institutional and individual investors, as well as research, asset management and wealth management firms. Our extensive suite of investor relations services provides our corporate clients with unparalleled cross-asset class surveillance, investor targeting, buy-side perception studies, transaction analysis and predictive analytics. Additionally, Ipreo s BD Corporate IR workflow platform offers the most accurate and comprehensive database covering global institutional contacts, profiles, and ownership data. Our critical insights and flexible solutions help our clients run more effective investor relations programs. Ipreo is private-equity held by Blackstone and Goldman Sachs Merchant Banking Division, and as more than 1,000 employees, supporting clients in every major financial hub around the world. GET IN TOUCH Tel: +44 (0) or us at callmenowir@ipreo.com