Morningstar Rating Analysis

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1 Morningstar Research January 2017 Morningstar Rating Analysis of European Investment Funds Authors: Nikolaj Holdt Mikkelsen, CFA, CIPM Ali Masarwah

2 Content Morningstar European Rating Analysis of Investment Funds 3 Top 50 Asset Managers in Europe; Sorted by AUM; Open-Ended Funds 6 Top Asset Managers in Europe; Sorted by AUM; Exchange Traded Products 8 Largest Asset Managers (First Quartile of Managers with minimum EUR 5 Billion) 9 Top 50 Smaller Asset Managers (Second to Fourth Quartile of Managers with minimum EUR 5 Billion) 11 Morningstar Ratings Grouped by Domicile 13 Methodology 14 About Morningstar 15

3 Morningstar European Rating Analysis of Investment Funds The Morningstar European Rating Analysis of Investment Funds is designed to compare managed fund ranges across asset managers and domiciles in Europe by aggregating their Morningstar ratings. The research format is calculated on a quarterly basis. It provides a quantitative assessment of the risk-adjusted return of all Europeandomiciled open-end funds and ETFs carrying a Morningstar rating. The Morningstar Rating for funds, often called the Star rating, debuted in 1985 and was quickly embraced by investors and advisors. The Morningstar rating is a quantitative assessment of a fund s past performance both return and risk as measured from one to five stars. The methodology rates funds based on an enhanced Morningstar Risk-Adjusted Return measure. The Morningstar European Rating Analysis of Investment Funds aggregates the rankings by providers by brand name) and domiciles and thus provides a useful insight into the strengths and weaknesses of fund ranges. It is, however, not designed as a forward-looking tool and does not indicate the future positioning of asset managers or fund domiciles. This follows the line that the Morningstar rating is intended for use as the first step in the fund evaluation process. For one, the Morningstar Rating Analysis of European Investment Funds provides a ranking by arithmetic, averaging the overall Morningstar ratings of asset managers and domiciles. It also delivers an asset-weighted ranking of asset managers and European-domiciled funds. The arithmetic ranking sorts by average Overall Morningstar Rating, the asset-weighted ranking also shows the percentage of assets sitting in 4- and 5-Star rated funds of all rated assets. The ranking by average overall Morningstar rating and the asset-weighted ranking both have their merits. The ranking by average overall Morningstar rating mirrors the average quality of the overall fund range, given that all funds are weighted equally. The asset-weighted ranking gives a realistic assessment of the fields of an asset manager s weakness and strength, in light of how investors allocated assets between available investment options within the fund range. The Morningstar European Rating Analysis of Investment Funds includes all European-domiciled open-ended funds and exchange traded products with a Morningstar rating. This implies that funds belonging to several broad categories are excluded since they are not eligible for a Morningstar rating. This includes alternative funds, money market funds, directly invested property funds, and commodity funds/etps. The Morningstar European Rating Analysis of Investment Funds includes five tables updated quarterly. Table 1 shows the top 50 asset managers in Europe, ranked by rated assets under management. Assets include rated European-domiciled open-ended funds. The column Equal-Weighted Rating shows the simple

4 arithmetic mean of the overall Morningstar rating. The columns showing the Asset-Weighted Rating represent the asset-weighted average Morningstar rating overall, and by the broad categories of equity, fixed income, and allocation. Finally, the column at the far right shows the percentage of assets sitting in 4- and 5-Star rated funds as a percentage of total rated assets. Table 2 shows the top ETF providers in Europe, ranked by rated assets under management. Assets include rated European-domiciled exchange traded products. Only asset managers with more than EUR 1 billion (ETF) are included. The column Equal-Weighted Rating shows the simple arithmetic mean of the overall Morningstar rating. The columns showing the Asset-Weighted Rating represent the asset-weighted average Morningstar rating overall, and by the broad categories of equity, fixed income, and allocation. Finally, the column at the far right shows the percentage of assets sitting in 4- and 5-Star rated funds as a percentage of total rated assets. Table 2 is the only table in the report that includes exchange traded products. To enable peer group comparisons, we then group together large asset managers in Table 3 and the smaller asset managers in Table 4. Table 3 ranks the largest asset managers in Europe by rated assets under management (open-ended funds). Only asset managers with more than EUR 5 billion and a minimum of 10 share classes/funds are included in the underlying universe. The table shows the top quartile of asset managers by rated assets under management. The column Equal-Weighted Rating shows the simple arithmetic mean of the overall Morningstar rating. The columns showing the asset-weighted rating represent the asset-weighted average Morningstar rating overall, and by the broad categories of equity, fixed income, and allocation. Finally, the column to the far right shows the percentage of assets sitting in 4- and 5-Star rated funds as a percentage of total rated assets. Table 4 ranks the largest 50 asset managers by rated assets (open-ended funds) which belong to the subsequent three quartiles. Only asset managers with more than EUR 5 billion and a minimum of 10 share classes/funds are included. The column Equal-Weighted Rating shows the simple arithmetic mean of the overall Morningstar rating. The columns showing the Asset-Weighted Rating represent the asset-weighted average of the overall Morningstar rating, and by the broad categories of equity, fixed income, and allocation. Finally, the column to the far right shows the percentage of assets sitting in 4- and 5-Star rated funds as a percentage of total rated assets. Table 5 shows the Morningstar ratings (open-ended funds) grouped by domicile ranked by equal-weighted ratings (the simple arithmetic mean of the overall Morningstar rating). The columns to the right show the assetweighted rating, which represents the asset-weighted average of the overall Morningstar rating, and by the broad categories of equity, fixed income, and allocation. Finally, the column to the far right shows the percentage of assets sitting in 4- and 5-Star rated funds as a percentage of total rated assets. For further information about this report or Morningstar in general, please contact:

5 - Ali Masarwah, Morningstar Germany, , - Nikolaj Holdt Mikkelsen, CFA, Morningstar Denmark , nikolaj.mikkelsen@morningstar.com

6 Table 1: Top 50 Asset Managers in Europe; Sorted by AUM; Open-Ended Funds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ontinued on next page.

7 e g n Morningstar Rating European Rating Analysis of Investment Funds [ \ ] ^ _ ` ^ a b ] c d ] f d _ h h d f h [ ^ i j e g h h d f n d ` a o f d _ e ] f ` ^ a i k l ] m d ` a o f d _ q ` r d _ e ] f ` ^ a g m m i k l ` f p s ^ t u c d g m m u t ] f ` u ^ v g h h d f h w x y h f ] \ z { } ~ z ƒ ƒ ˆ Š ˆ Œ Ž ˆ ˆ ~ } Ž Ž Ž Š Œ ˆ Ž Ž ˆ Ž Š ˆ ˆ ˆ Ž ˆ Œ ƒ } ƒ Š Œ Š Š Œ š œ Œ Ž Œ Ž ˆ ž Ÿ } Ž ˆ ˆ š ƒ ƒ ~ } ˆ Š Ž Ž ~ ž } ƒ ˆ ˆ Ž Œ ˆ ˆ Œ ~ ƒ ž Œ Ž ˆ Š š ž ~ z Ž Œ ˆ Ž Š ƒ Ÿ z ƒ ƒ ˆ ˆ ˆ } ƒ š ƒ Š ˆ Ž ˆ } š ƒ ˆ ˆ Œ Š œ Œ ˆ Š ˆ Ž ˆ Œ š ˆ Ž Š Table 1: Assets include open-ended rated European-domiciled funds. Total Rated Asset bil. EUR included in the calculation. Equal-Weighted Rating: Simple arithmetic mean of Overall Morningstar Rating. Asset-Weighted Rating: Asset-weighted Overall Morningstar Rating, overall and on broad asset classes. Assets 4-5 Star: Percentage of assets invested in funds rated 4 & 5 stars.

8 Table 2: Top Asset Managers in Europe; Sorted by AUM; Exchange Traded Products ª «± ² ³ µ ³ ³ µ ª ¹ º» ¼ ½ ³ ¾ µ ³ µ ¼ ¼ º» µ ³ µ ½ ³ ¾ µ ³ µ À Á ³ Â Ã Ä ² ³ ¼ ¼ Ä Ã µ Ä Å ³ µ Æ Ç È µ «É Ê Ë Ì Í Î Ï Ð Ð Ñ Ò Ð Ó Ò Ð Ó Ó Ò Ô Ð Ó Ò Ñ Ð Ó Ò Ð Ñ Õ Ö Ø Ù Ú Û Õ Ü Í Ì Ý Þ Î Í Ï ß Ò Ð Ó Ò à Ó Ó Ò Ö Ð Ó Ò ß Ó Ó Ò Ñ Ô ß Ò á Ð Ó á Ø â ã ä å Í Ó á Ò Ö Ó Ò Ó Ñ Ó Ò ß ß Ó Ò ß æ Ó Ò Ó Ð Õ ß Ñ Ø ç Ì è é ê Ì Í Ù Ó á Ò à Ó Ò Ñ à ß Ò Ô æ ß Ò Ô æ ß Ò à à Õ á Ø ë ì ê è Ù É Ñ Ò Ð Ó Ò Ô Ó Ò ß æ Ó Ò ß Ô Ó Ò Ö à Õ ß Ö Ø í î Ê æ Ò à Ó Ò Ó Ò Ó à Ó Ò Ó Ñ Ò á Ð Ò à à Ó æ Ø Ê Ü Ì Ü Î Ê Ü Í Î Î Ü ß Ò á Ó Ò ß ß Ó Ò Ñ ß Ò à ß Ó Ò Ð á Õ æ Ö Ø Ê å ê Í Ý Î Ñ Ò æ Ó Ò Ð Ñ ß Ò à Ô ß Ò à Ô Õ Õ Ô ß Ø ï Î Þ Ì æ Ò Ñ Ó Ò à à Ð Ò Ñ à Ó Ò Ð à Ò á à Õ æ Ø ð ñ ò ó ô Ö Ò Ô Ó Ò Ó Ó Ó Ò Ó ß Õ Ó Ò Ó ß Õ Ó ß Ø ó å ì ì Î Í õ Ú Ì è Þ Ö Ò Ó Ò à Ó Ò Ô Ö Ó Ò Ô Ô Ó Ò Ö Ö Õ Ö ß Ø ö Ì è Ù Î Ï Ú Ì è Þ Î è ß Ò Ó Ð Ò Ö à Ð Ò Ö Ð Ð Ò Ö Ð Õ Õ à Ø ö Ê î ó ß Ò Ó Ò à ß ß Ò à Ñ ß Ò à Ñ Õ Õ Ô ß Ø ø ö ù ë ò Ó Ò Ð Ó Ò ß ß Ò Ó Ó ß Ò Ó à Ö Ò à à Õ Ñ æ Ø ñ è ú Î Ï Ý å Ò æ Ó Ò à Ñ ß Ò Ô ß ß Ò Ô ß Õ Õ á Ô Ø ø Ë É è Þ ù ø û Ï Ò Ô Ó Ò Ö Ö Ó Ò ß ß Ò à Ð Ò Ð Ó ß Ò Ô á æ ß Ø ô Ê Ê ñ ë ò Ò Ó Ò Ô à Ó Ò Ó æ Ó Ò Ó æ Õ Õ Ð Ö Ø Table 2: Assets include rated European-domiciled Exchange-Traded-Products. Total Rated Asset bil. EUR included in the calculation. Equal- Weighted Rating: Simple arithmetic mean of Overall Morningstar Rating. Asset-Weighted Rating: Asset-weighted Overall Morningstar Rating, overall and on broad asset classes. Assets 4-5 Star: Percentage of assets invested in funds rated 4 & 5 stars.

9 Table 3: Largest Asset Managers (First Quartile of Managers with minimum EUR 5 Billion); Sorted by Average Overall Morningstar Rating; Open-Ended Funds ü ý þ ÿ ÿ þ þ ü þ þ ÿ þ ÿ ÿ þ ÿ þ ý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able 3: Only asset managers with more than EUR 5 billion in AUM and a minimum of 10 share classes/funds are included in the table.

10 Assets include rated open-ended European-domiciled funds. Total Rated Asset bil. EUR included in the calculation. Equal-Weighted Rating: Simple arithmetic mean of Overall Morningstar Rating. Asset-Weighted Rating: Asset-weighted Overall Morningstar Rating, overall and on broad asset classes. Assets 4-5 Star: Percentage of assets invested in funds rated 4 & 5 stars.

11 q Morningstar Rating European Rating Analysis of Investment Funds Table 4: Top 50 Smaller Asset Managers (Second to Fourth Quartile of Managers with minimum EUR 5 Billion); Sorted by Average Overall Morningstar Rating; Open- Ended Funds Z [ \ ] ^ _ ] ` a \ b c d \ e c ^ f g g c e g h Z _ i j k l d m f g g c e p q c _ ` r e c ^ d \ e _ ] ` k n o \ i p c _ ` r e c ^ t _ u c ^ d \ e _ ] ` f i i k n o _ e s v ] w x b c f i i x w \ e _ x ] f g g c e g y z { g e \ [ } ~ ƒ ˆ ˆ ˆ ˆ ˆ ˆ ˆ ˆ Š Œ Ž Ž Ž ƒ Œ ~ Œ Ž ˆ Š Œ ~ ~ Ž š ˆ ˆ ˆ Š ƒ œ ƒ Œ ƒ Ž Š š Ž ƒ ˆ ˆ Š ž Ÿ š Ž Ž ˆ ˆ Š ž ˆ ˆ ˆ ˆ Š ž š Ž ƒ Œ ~ Œ Ž Ž ~ ƒ ˆ Š Œ š ˆ Š Ž ª ª ~ ƒ š ~ Œ ~ Œ Ž Ž ~ ˆ Š š ªŒ Œ «ƒ Œ ª ˆ ˆ ˆ Š Ž ƒ ˆ ˆ ˆ ˆ Š Œ ~ Ž Ž š ~ Ž Š ª š Œ š ~ œ ƒ š Š Œ š ~ Œ ª Ž ˆ ˆ Š ƒ Ž ˆ ˆ ˆ Š ~ ƒ ˆ ˆ ˆ Š š ~ Ž ˆ ˆ ˆ ˆ ˆ Š Œ ª ª Ž ± ± š ˆ ˆ Š Ž ˆ Š œ ƒ š Ž Œ ~ Š } ± ± Ž ˆ ˆ ˆ ˆ ˆ Š Ž Ž ª š Œ ª ~ Ž ƒ Ž ˆ ˆ Š Ž ~ Ž ƒ Š } «ƒ Ž ˆ ˆ Š š } «Œ Œ Š œ ˆ ˆ Š Œ «ƒ Œ ~ Œ ~ Œ ª ˆ Š ˆ ˆ Š œ ƒ Œ ƒ Ž œ ƒ Ž Ž ƒ ˆ ˆ Š ² š ~ ƒ š Ž ª ˆ Š ³ Ž ªƒ Œ ª š ˆ ˆ Š ª ª Œ ~ ˆ Š Œ «± ³ Ž ª Ž ~ Ž ƒ Œ ~ Œ ˆ ˆ Š µ Ž «Ž ~ ˆ Š Continued on next page.

12 ¹ º» ¹ ¼ ½ ¾ À Á º Â Ã Ã Á Ã Ä» Å Æ Ç È À É Ç Ê Ë Å Ì Í» ¼ Î Á º À Á» ¹ ¼ Â Å Å Ç Ê Ë» Á Ï Â Ã Ã Á Ì Í» ¼ Î Á º À Á» ¹ ¼ Ð» Ñ º Ò ¹ Ó Ô ¾ Â Å Å Ô Ó Á» Ô ¹ Â Ã Ã Á Ã Õ Ö Ã Á Ø Ù Ú Û Ü Ý Ù Þ Ü ß à á â ã â ä ã å æ ä ã ç å ä ã è ç ç ã ç é ä ã ê ê ä ê ë ì Þ à í Ú ß Ü î ß ï ð Ý ç é ã ç ä ã å æ ä ã ñ é å ã æ á ä ã ä á å ã é ä ñ é ë ò ó Ý Ý Û à à ç ä ã ä ä ã å æ ä ã è ñ ä ã é ä ä ã ä å ä ã á ñ è á ë ò Þ ô ð Ý ï ð Ù à í ñ ã ê ä ã ä é ä ã â æ ç ã ç æ å ã æ è å ã å ñ ê è ë õ ö õ ø ò ù á ç ã á ä ã ä é ä ã è ç ä ã å ñ ä ã ê ñ å ã æ ñ ñ ê ë õ ú ï ß á ê ã ñ ä ã ä â ä ã å æ ä ã æ æ ä ã è æ ä ã ä å ä ç ë ö û ø Û à à Þ Ü ä æ ã ê ä ã ä è ä ã é è å ã ç æ ä ã å á ä ã ñ è ê â ë ù í í Þ ø Û ú Ùô Û Ü õ Ý Ý Û ô ø ß á æ ã â ä ã ä ê ä ã â á å ã á è ä ã è è ä ã å á è æ ë ü ý Ü Ý þ ÿ ú Ý ý ú Ù Ü ß ú á á ã å ä ã ä ñ ä ã ä ä ä ã ç ñ ç ã ê â ä ã ñ é ñ ä ë à Ù ñ ã ê ä ã ä å å ã æ ê ä ã è å å ã ç ç ä ã ñ ä â á ë Ü Û Ý ô Û ï ç é ã å ä ã ä á ä ã ê ç ä ã â æ ä ã ñ æ ä ã ä ñ ñ ê ë î ß ú Ù Ü Û Ý ô ê ã å ä ã ä á ä ã ç å ä ã ä è ç ã â é å ã ç ç ä á ë ü ß Ù Ü ß Ü ï Ù ú Û í Û à ï ð Ù ó ñ ã è ä ã ä æ ä ã ç æ ä ã æ ä ç ã ä á ä ã ê ê ç â ë ø ß ú à Þ ú Þ ó ð ñ ã ê ä ã ç ê å ã ç ñ å ã ä ñ ä ã ê ê ä ã á ê â é ë Ø ö ç á ã ñ ä ã ç ñ ä ã ñ è ä ã ñ é ä ã ê ñ ä ã á å ñ ç ë Table 4: Only asset managers with more than EUR 5 billion in AUM and a minimum of 10 share classes/funds are included in the table. Asset managers from the top quartile are excluded. Assets include open-ended rated European-domiciled funds. Total Rated Asset bil. EUR included in the calculation. Equal-Weighted Rating: Simple arithmetic mean of Overall Morningstar Rating. Asset-Weighted Rating: Assetweighted Overall Morningstar Rating, overall and on broad asset classes. Assets 4-5 Star: Percentage of assets invested in funds rated 4 & 5 stars.

13 Table 5: Morningstar Ratings Grouped by Domicile; Sorted by Average Overall Morningstar Rating; Open-Ended Funds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able 5: Assets include open-ended rated European-domiciled funds. Total Rated Asset bil. EUR included in the calculation. Equal-Weighted Rating: Simple arithmetic mean of Overall Morningstar Rating. Asset-Weighted Rating: Asset-weighted Overall Morningstar Rating, overall and on broad asset classes. Assets 4-5 Star: Percentage of assets invested in funds rated 4 & 5 stars.

14 Methodology The Morningstar Rating is a global comparison of funds with similar investment exposure taking into account funds risk-adjusted return. Morningstar assigns ratings based on comparisons of all funds within a specific Morningstar Category. The Morningstar Category system for funds is designed to help investors make meaningful comparisons between Investment funds. Morningstar regularly reviews the category structure and the funds within each category to ensure that the system meets the needs of investors and keeps pace with market developments. This Morningstar analysis is a comparison of Overall Morningstar Ratings across branding names, domiciles, and so on. All rated European-domiciled funds/share classes are included in this report. Funds or share classes with share class total net assets older than four months are excluded. For share classes with updated fund size but no share class size, we assume assets are divided equally among such share classes in a given fund.

15 About Morningstar Morningstar, Inc. 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 525,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on nearly 18 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, with more than $180 billion in assets under advisement and management as of March 31, The company has operations in 27 countries. Morningstar s mission is to create great products that help investors reach their financial goals. We accomplish this by working directly with investors, as well as the advisors and institutions that serve them. ] ^ _ ` a ` _ b c d e use Morningstar to make educated investment decisions. They access our independent investment information and analysis through publications, conferences, and online resources such as Morningstar.com and our other investing websites around the world. f ` ^ c ^ g ` c d c _ a ` e h i e and other investment professionals turn to Morningstar for tools that help them research, analyse, and present their investment ideas. We support these professionals with software, services, events, and our advisor platforms: Morningstar Office and Morningstar Advisor Workstation. ] ^ e j ` j b j ` h ^ e value our independence, breadth of information, and customized services. We help them meet business goals through our investment consulting and investment management services, as well as through offerings such as Morningstar Data and our institutional investment analysis platform, Morningstar Direct.

Morningstar Rating Analysis

Morningstar Research January 2018 Morningstar Rating Analysis of European Investment Funds Authors: Nikolaj Holdt Mikkelsen, CFA, CIPM Ali Masarwah Content Morningstar European Rating Analysis of Investment