Global debt flows. Exposure builds in Turkey & Italy amplified pain. Six things learnt from latest flows data. Economic & Financial Analysis

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1 Economic & Financial Analysis Global Debt & Rates 25 May 218 Rates and Credit Note: The weekly data in this report reference the week ended Wednesday 23 th May 218 Global debt flows Exposure builds in Turkey & Italy amplified pain We note that investors had been building allocations to both Turkey and Italy though April, which no doubt exacerbated the subsequent selling seen in recent weeks. We also find that allocations to Germany were at their lowest of the year at end April and well below normal, so an element of short covering there added to the recent bid to Bunds. Latest flows data also show reasonable buying in inflation linked funds plus some nibbling in corporates. High yield and emerging markets outflows have ground to a halt for the latest week, but the underlying trend is still a leakage. High yield though is weathering things far better. Graph of the week: Outflows from EM (has calmed in past week, but still vulnerable) Total Professional Retail EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM Six things learnt from latest flows data 1) The flows data show a clear build in exposure to core Government front end funds and a reduction in exposure to long end funds, thus marking a market-wide duration short. There has been less selling of corporates though. 2) We note a clear long Italy / short Germany tendency (exposure to Germany was especially underweighted) built through April, which we think exacerbated the BTP spread widening and lower bund yield trajectory in recent weeks. 3) High yield has continued to see aggregate outflows in the past month, but they are quite muted now, and for a change contrast positively with the much bigger outflows seen from emerging markets in previous weeks. 4) The high yield space is weathering better the strong dollar / higher rates combo that has crippled emerging markets, although the latter has also had to deal with some notable idiosyncratic risks (eg Turkey, Argentina a.o). Padhraic Garvey, CFA Global Head of Debt and Rates Strategy London padhraic.garvey@ing.com View all our research on Bloomberg at ING<GO> 5) Outflows from emerging markets dominated in the past month, with retail selling hard currency while professionals liquidated local currency. For the latest week more subdued conditions are in play, summing to only mild outflows. 6) Turkey has been a central to the outflows theme. Turkey in fact saw allocations rise through April, which likely added to the pain then seen through May. Turkey saw inflows again for the latest week (still vulnerable though). 1

2 Contents Global Manager (average) Allocations by Region 3 Emerging markets 4 Emerging Markets Summary themes... 5 Global EM Manager Asset Allocations... 7 Regional EM Manager Asset Allocation... 8 Selected EMEA and Latam Country Flows... 9 Selected Asia and ME/Africa Country Flows... 1 High Yield 11 High Yield Summary themes High Yield EU and USD vs EM (all currency) Developed Markets 14 Developed Markets Summary themes Developed Markets Net Fund Flows Global DM Manager Asset Allocations Developed Markets Country Flows

3 Global Manager (average) Allocations by Region Fig 1 Global allocations one month ago (%) Fig 2 EM allocations one month ago (%) Middle East, Asia.9 Other,.8 Cash, 3.4 Ex-Japan, 2.9 Africa, 9.8 Africa,.9 Emerging Europe, Latin America, Middle East, 7.5 Latin America, 35.3 Developed Asia, 9. North America, 39.6 Other, 1.1 Asia Ex-Japan, 2.3 Developed Europe, 35.1 Emerging Europe, 22.8 Fig 3 EM detailed allocations one month ago (%) Fig 4 EMEA allocations one month ago (%) Korea (South),.4 Srilanka,.7UAE, 1.3 Cash, 2.6 Dom. Rep., 1.1 Panama,.7 Brazil, 8. Chile, 2.2 Venezuela,.6 India, 1.8 Ukraine, 1.4 Kazakhstan, 1.4 Philippines, 1.4 Romania, 1. Thailand, 1.5 China, 3.4 Peru, 2.7 Hungary, 2. Malaysia, 2.8 Argentina, 4. Poland, 3.1 South Africa, 4.6 Mexico, 7.3 Russia, 5.2 Colombia, 4.2 Indonesia, 6.4 Turkey, 5.2 Azerbaijan, Czechrepublic, Slovenia,.2 Cash, 1.3 Serbia, 1.3 Lithuania,.6 Croatia, 3.2 Ukraine, 5.5 Kazakhstan, 5.3 Romania, 4. Hungary, 7.8 Poland, 11.7 South Africa, 17.6 Turkey, 19.9 Russia, 19.6 Fig 5 Asia EM allocations one month ago (%) Fig 6 Latam allocations one month ago (%) Vietnam,.6 Singapore, 3.3 Mongolia,.5 Bangladesh,. Cash, 5.2 Taiwan,. Pakistan, 1.9 Hongkong, 2.6 Srilanka, 3.7 Korea (South), 2.1 Indonesia, 31.7 Jamaica, 1. Ecuador, 2.2 Guatemala,.7.1. Cuba, Elsalvador, 1.3 Cash,. 4. Paraguay,.9 Uruguay, 3.3 Costarica, 1.8 Panama, 2.1 Venezuela, 1.7 Brazil, 23. India, 8.9 Dom. Rep., 3.2 Chile, 6.4 Philippines, 6.9 Peru, 7.6 Mexico, 21. Thailand, 7.2 China, 16.9 Malaysia, 13.7 Argentina, 11.5 Colombia, 12.2 Fig 7 Developed allocations one month ago (%) Fig 8 Eurozone allocations one month ago (%) Newzealand,.4 Denmark,.3Norway,.4 Cash, 3.9 Switzerland, 1.2 Sweden, 1. Australia, 2.2 Canada, 4.3 Japan, 7.4 UK, 9.3 USA, 41.1 Finland,.7 Greece, 1.5 Slovakia,.1.. Cash, 2.3 Portugal, France, 24.2 Ireland, 3.6 Austria, 1.4 Belgium, 4.3 Spain, 13.2 Netherlands, 8.7 Germany, 14.9 Euro, 24.5 Italy,

4 Emerging markets 4

5 Emerging Markets Summary themes Outflows from emerging market funds have dominated in the past month, broadly balanced between hard and local currency funds, although the latter funds did see the more persistent selling. Retail liquidated emerging market funds more aggressively than professional players. Retail also sold more in hard currency funds, while professional players were more likely to liquidate in local currency funds. For the latest week, retail were marginal sellers of emerging markets, again biased towards hard currency selling. In contrast, professional players were seen building some mild net longs, although still underweighting local currency. On a 3mth view emerging markets are broadly balanced in terms of flows, and in the past year are still running at inflows of 11% of assets under management, which presents a cushion against which to contextualise recent outflows. Fig 9 Feature Chart: Light blue line total returns including flows (clear down of late) 6, 4, 2, -2, -4, -6, -8, $ million $bn (cumulative AUM) EM Hard (all investors) EM Local (all investors) EM Blend (all investors) EM Total (all investors) In terms of country allocations, the latest data we have refer to 3 th April. Interestingly it shows that allocations to Turkey were at 19.9% in the average EMEA portfolio, which compares with a 19.2% allocation in the previous month. So allocations to Turkey were building ahead of the capitulation sell-off in the lira, which no doubt added to the pain. In contrast, we find that allocation to Russia on an EMEA portfolio had fallen to 19.6% on 3 th April, down from an allocation 21.6% a month before that. This offered a cushion to Russia, as the market was a tad short (but also of course also underpinned by the pop in the oil price and better relative fundamentals). Latest flows data through to this week highlight outflows from Romania, Poland and Czech in the past week. In contrast, Turkey managed inflows. In Latam, outflows from Brazil contrast with inflows to Colombia in the past week. In Asia, outflows have dominated in the past weeks, led by Mongolia (in proportionate terms). In contrast, MENA saw resumed inflows this week after a month of outflows. BOTTOM LINE: Outflows from emerging markets have dominated in the past month, with retail seen liquidating hard currency while professionals preferred to liquidate local currency. For the latest week more subdued conditions are in play, summing to only a mild outflow, but driven by ongoing retail selling in contrast to professional driven inflows to hard currency funds. Turkey has been a central factor underpinning the outflow theme, and we find that Turkey allocations were on the rise through April, which likely added to the pain then seen through May. We also note a build in outflows from Romania in particular of late, but also from Poland and Czech, while Turkey in fact saw inflows for the latest week. Still vulnerable though despite the recent emergency hike. 5

6 Emerging Markets Net Fund Flows Fig 1 Emerging Markets - Change in the past week (%) Fig 11 Emerging Markets - Change in past week (US$m) % AUM PAST WEEK Total Professional Retail $ millions PAST WEEK Total Professional Retail EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM Fig 12 Emerging Markets - Change in the past month (%) Fig 13 Emerging Markets - Change in past month (US$m) Total Professional Retail $ millions PAST MONTH Total Professional Retail EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM Fig 14 Emerging Markets - Change in past quarter (%) Fig 15 EM - Change in past quarter (US$m) 3. % AUM PAST QUARTER 3 $ millions PAST QUARTER Total Professional Retail -4 Total Professional Retail EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM Fig 16 Emerging Markets - Change in the past year (%) Fig 17 Emerging Markets - Change in past year (US$m) 25. % AUM PAST YEAR 6 $ millions PAST YEAR Total Professional Retail -1 Total Professional Retail EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM EM Hard Currency Funds EM Local Currency Funds EM Blend Currency Funds Total EM 6

7 Global EM Manager Asset Allocations Fig 18 GEM allocations one month ago (%) Fig 19 GEM detailed allocations one month ago (%) Latin America, 35.3 Africa, 9.8 Middle East, 7.5 Other, 1.1 Korea (South),.4 Srilanka,.7UAE, 1.3 Cash, 2.6 Dom. Rep., 1.1 Panama,.7 Brazil, 8. Chile, 2.2 Venezuela,.6 India, 1.8 Ukraine, 1.4 Kazakhstan, 1.4 Philippines, 1.4 Romania, 1. Thailand, 1.5 China, 3.4 Mexico, 7.3 Indonesia, 6.4 Asia Ex-Japan, 2.3 Peru, 2.7 Hungary, 2. Turkey, 5.2 Emerging Europe, 22.8 Malaysia, 2.8 Argentina, 4. Poland, 3.1 South Africa, 4.6 Russia, 5.2 Colombia, 4.2 Fig 2 GEM allocations two months ago (%) Fig 21 GEM detailed allocations two months ago (%) Latin America, 35.9 Emerging Europe, 23. Africa, 9.6 Middle East, 7.1 Other, 1.2 Asia Ex-Japan, 19.8 Korea (South),.4 Srilanka,.6UAE, 1.4 Cash, 2.6 Dom. Rep., 1.2Panama,.8 Brazil, 8.3 Chile, 2.2 Venezuela,.7 India, 1.8 Ukraine, 1.7 Kazakhstan, 1.1 Philippines, 1.3 Romania, 1. Thailand, 1.4 China, 3.3 Peru, 2.7 Hungary, 2.1 Malaysia, 2.7 Argentina, 4. Poland, 2.9 South Africa, 4.7 Mexico, 7.4 Russia, 5.8 Colombia, 4.2 Indonesia, 6.4 Turkey, 5.1 Fig 22 GEM allocations one quarter ago (%) Fig 23 GEM detailed allocations one quarter ago (%) Latin America, 35.9 Emerging Europe, 23.6 Africa, 8.8 Middle East, 6.8 Other,.8 Asia Ex-Japan, 2.5 Korea (South),.5 Srilanka,.7UAE, 1.2 Cash, 2.6 Dom. Rep., 1. Panama,.8 Brazil, 9. Chile, 2.1 Venezuela,.5 India, 1.8 Ukraine, 1.9 Kazakhstan, 1.3 Philippines, 1.3 Romania, 1.1 Thailand, 1.4 China, 3.1 Peru, 2.9 Hungary, 2.2 Malaysia, 2.8 Argentina, 3.8 Poland, 2.9 South Africa, 4.5 Mexico, 7.3 Russia, 5.1 Colombia, 3.8 Indonesia, 6.7 Turkey, 5.5 Fig 24 GEM allocations one year ago (%) Fig 25 GEM detailed allocations one year ago (%) Latin America, 38. Africa, 8.3 Middle East, 5.1 Other, 1.1 Asia Ex-Japan, 2. Korea (South),.8 Srilanka,.9UAE, 1. Cash, 2.6 Dom. Rep., 1.3 Panama,.8 Brazil, 9. Chile, 1.4 Venezuela, 1.2 India, 1.7 Ukraine, 1.7 Kazakhstan, 1.6 Philippines, 1.2 Romania, 1.2 Thailand, 1.6 China, 2.4 Peru, 2.7 Mexico, 8.5 Indonesia, 7. Hungary, 2.3 Malaysia, 2.8 Turkey, 5.4 Emerging Europe, 24.8 Argentina, 4.4 Poland, 2.8 South Africa, 4.3 Colombia, 4.2 Russia, 6.2 7

8 Regional EM Manager Asset Allocation Fig 26 EMEA allocations one month ago (%) Fig 27 EMEA allocations two months ago (%) Azerbaijan, Czechrepublic, Slovenia,.2 Cash, 1.3 Serbia, 1.3 Lithuania,.6 Croatia, 3.2 Ukraine, 5.5 Kazakhstan, 5.3 Romania, 4. Turkey, 19.9 Azerbaijan, 1..1 Czechrepublic, 1.4 Serbia, Slovenia,..2 Cash, 1. Lithuania,.6 Croatia, 3.2 Ukraine, 6.5 Kazakhstan, 4.3 Romania, 3.9 Turkey, 19.2 Hungary, 7.8 Russia, 19.6 Hungary, 7.8 Russia, 21.6 Poland, 11.7 Poland, 1.9 South Africa, 17.6 South Africa, 17.7 Fig 28 Asia allocations one month ago (%) Fig 29 Asia allocations two months ago (%) Vietnam,.6 Singapore, 3.3 Mongolia,.5 Bangladesh,. Cash, 5.2 Taiwan,. Pakistan, 1.9 Vietnam,.5 Bangladesh,. Cash, 5.1 Mongolia,.6 Taiwan,. Pakistan, Singapore, Hongkong, 2.6 Srilanka, 3.7 Korea (South), 2.1 Indonesia, 31.7 Hongkong, 2.4 Srilanka, 3.3 Korea (South), 2.2 Indonesia, 32.3 India, 8.9 India, 9. Philippines, 6.9 Philippines, 6.8 Thailand, 7.2 Malaysia, 13.7 Thailand, 6.9 Malaysia, 13.7 China, 16.9 China, 16.9 Fig 3 Latam allocations one month ago (%) Fig 31 Latam allocations two months ago (%) Jamaica, 1. Ecuador, 2.2 Guatemala,.7.1. Cuba, Elsalvador, 1.3 Cash,. 4. Paraguay,.9 Uruguay, 3.3 Costarica, 1.8 Panama, 2.1 Venezuela, 1.7 Dom. Rep., 3.2 Chile, 6.4 Brazil, 23. Jamaica, 1. Ecuador, 2.3 Guatemala,.6 Elsalvador, 1.3 Paraguay,.9 Uruguay, 3.1 Costarica, 1.8 Panama, 2.2 Venezuela, 1.9 Dom. Rep., 3.3 Chile, Cuba,. Cash, 7.4 Brazil, 23.4 Peru, 7.6 Mexico, 21. Peru, 7.6 Mexico, 21. Argentina, 11.5 Colombia, 12.2 Argentina, 11.4 Colombia, 11.7 Fig 32 Africa & ME allocations one month ago (%) Fig 33 Africa & ME allocations two months ago (%) Oman, 8.5 Iraq, 2.3 Ethiopia,.7 Jordan, 1.8. Rwanda,.4 Saudi Arabia, 8.9 Bahrain, UAE, 12.5 Israel, 8.3 Oman, 8.7 Ethiopia,.7 Iraq, 2.3 Jordan, 1.9 Rwanda,.5 Saudi Arabia, 8.3 Bahrain, UAE, 13.3 Israel, 8.7 Namibia,.6 Ivorycoast, 5.1 Namibia,.7 Ivorycoast, 4.8 Tunisia, 1. Gabon, 1.3 Angola, 1. Kenya, 2.4 Egypt, 16.6 Lebanon, 5.6 Ghana, 4.1 Zambia, 2.2 Nigeria, 12.3 Tunisia,.7 Gabon, 1.3 Angola, 1.1 Kenya, 2.6 Egypt, 15.8 Lebanon, 5.8 Ghana, 4.3 Zambia, 2.5 Nigeria,

9 Selected EMEA and Latam Country Flows Fig 34 EMEA Change in the past week (%) Fig 35 EMEA Change in the past month (%) Total (Selected EMEA) % AUM PAST WEEK Total (Selected EMEA) Ukraine Ukraine Turkey Turkey S Africa S Africa Russia Russia Romania Romania Poland Poland Kazakhstan Kazakhstan Hungary Hungary Czech Czech Fig 36 EMEA Change in the past quarter (%) Fig 37 EMEA Change in the past year (%) Total (Selected EMEA) % AUM PAST QUARTER Total % AUM PAST YEAR Ukraine Ukraine Turkey Turkey S Africa S Africa Russia Russia Romania Romania Poland Poland Kazakhstan Kazakhstan Hungary Hungary Czech Czech Fig 38 Latam Change in the past week (%) Fig 39 Latam Change in the past month (%) % AUM PAST WEEK Total (Selected Latam) Venezuela Peru Mexico Colombia Brazil Argentina Total (Selected Latam) Venezuela Peru Mexico Colombia Brazil Argentina Fig 4 Latam Change in the past quarter (%) Fig 41 Latam Change in the past year (%) Total (Selected Latam) % AUM PAST QUARTER Total (Selected Latam) % AUM PAST YEAR Venezuela Venezuela Peru Peru Mexico Mexico Colombia Colombia Brazil Brazil Argentina Argentina

10 Selected Asia and ME/Africa Country Flows Fig 42 Asia Change in the past week (%) Fig 43 Asia Change in the past month (%) % AUM PAST WEEK Total (Selected Asia EM) Total (Selected Asia EM) Vietnam Vietnam Thailand Thailand S Korea S Korea Philippines Philippines Pakistan Pakistan Mongolia Mongolia Malaysia Malaysia Indonesia Indonesia India India China China Fig 44 Asia Change in the past quarter (%) Fig 45 Asia Change in the past year (%) Total (Selected Asia EM) % AUM PAST QUARTER Total % AUM PAST YEAR Vietnam Vietnam Thailand Thailand S Korea S Korea Philippines Philippines Pakistan Pakistan Mongolia Mongolia Malaysia Malaysia Indonesia Indonesia India India China China Fig 46 Middle East & Africa In the past week (%) Fig 47 Middle East & Africa In the past month (%) Total (Selected Sub-Sahara) Nigeria Ivory Coast Total (Selected ME & NA) UEA Tunisia Qatar Lebanon Kuwait Jordan Israel Eqypt Bahrain % AUM PAST WEEK Total (Selected Sub-Sahara) Nigeria Ivory Coast Total (Selected ME & NA) UEA Tunisia Qatar Lebanon Kuwait Jordan Israel Eqypt Bahrain Fig 48 Middle East & Africa In the past quarter (%) Fig 49 Middle East & Africa In the past year (%) Total (Selected Sub-Sahara) Nigeria Ivory Coast Total (Selected ME & NA) UEA Tunisia Qatar Lebanon Kuwait Jordan Israel Eqypt Bahrain % AUM PAST QUARTER Total (Selected Sub-Sahara) Nigeria Ivory Coast Total (Selected ME & NA) UEA Tunisia Qatar Lebanon Kuwait Jordan Israel Eqypt Bahrain % AUM PAST YEAR

11 High Yield 11

12 High Yield Summary themes The contrast between high yield and emerging markets is interesting. Up until the latest month, big outflows from high yield contrasted with equal and opposite big inflows to emerging markets. And right through Jan-Apr this year outflows from high yield also outstripped any outflows from emerging markets. This changed in the past month when emerging markets came under specific pressure, finding the strong dollar / rising rates combo a touch tougher to negotiate, mostly on idiosyncratic issues relating to Turkey in particular (but a.o.). All things considered though, high yield has outperformed versus emerging markets in terms of total returns, despite the prior high yield outflow dominance. This augurs well for high yield in the coming month, as it is seen as a sector that is better equipped to deal with more dollar strength and/or higher rates, at least from a total returns perspective (which of course is the one that matters the most). We also note that pan-european high yield has held up quite well, even when translated back into US dollars. Fig 5 Feature Chart: Orange line is AUM changes plus returns, helped by $ up move $bn (weekly flow) W Europe High Yield (in $) $bn (cumulative AUM) EU High Yield Weekly Flow $bn (LHS) EU High Yield Cumulative AUM $bn (RHS) Flows in high yield in the past week have been broadly balanced, but in the past month outflows from US high yield contrasts with inflows to W Europe high yield. On aggregate though high yield has seen outflows in the past month, but only at half the rate seen out of emerging markets. BOTTOM LINE: High yield has continued to see aggregate outflows in the past month, but they are quite muted now, and for a change contrast positively with bigger outflows from emerging markets. For the latest week, high yield flows have been balanced, and in the past month we note a.7% increase in assets under management in W Europe high yield, despite the (moderate) outflows from US high yield. The high yield space is weathering better the strong dollar / higher rates combination that has crippled emerging markets, although the latter has also had to deal with some notable idiosyncratic risks (eg Turkey). 12

13 High Yield EU and USD vs EM (all currency) Fig 51 Western Europe High Yield Weekly Flows $bn (weekly flow) W Europe High Yield (in $) $bn (cumulative AUM) EU High Yield Weekly Flow $bn (LHS) EU High Yield Cumulative AUM $bn (RHS) Fig 52 US High Yield Weekly Flows 6. $bn (weekly flow) USD High Yield $bn (cumulative AUM) US High Yield Weekly Flow $bn (LHS) US High Yield Cumulative AUM $bn (RHS) Fig 53 6, 4, 2, -2, -4, -6, -8, Emerging Markets Weekly Flows all currencies $ million $bn (cumulative AUM) EM Hard (all investors) EM Local (all investors) EM Blend (all investors) EM Total (all investors) 13

14 Developed Markets 14

15 Developed Markets Summary themes Government bond flows in the past month have seen clear inflows to front end funds and an outflow from back end funds, which implies that the prior barbell inclination has been morphed into an outright duration short. One warning here for the bond bears is that the market may be too short on duration. Flows in the latest week have been more subdued, but show flows into front end funds versus liquidations in belly funds, but at the same time some mild longs are being re-built in long end funds. No clear new impulse here, and no material reversal of the short duration preference at this juncture. In terms of corporates, similar trends have been in play as front end exposures have built and there have been liquidations in belly funds. However there has been a more notable inflow back into long end funds. Not remarkable yet though as assets under management are up some.5% in the past month in long term funds, which is still mild compared with the 3% outflow seen in the previous couple of months. Fig Feature Chart: Outflow from long end and inflow to front end (duration short) Government Corporate Multi-Product Short end Belly Long end Total Flows in inflation in the past week have been broadly balanced, but a clear inflow process has been in evidence in previous weeks, and especially into W Europe inflation funds. To contextualise this there has been a 6.6% build in assets under management in W Europe inflation in the past quarter, compared with a.3% build in US inflation funds. The European reflationary trade is still being bought into. Italy has been under the cosh in recent weeks, and it is interesting to note that allocations had built in Italy right through April. Specifically the average Eurozone allocation rose from 15.8% at end March to 19.1% at end April, and indeed that was the highest allocation to Italy over the past year. This increased allocation to Italy was one of the reasons for the hard fall when it came. It is also striking that Eurozone portfolio allocation to Germany was at low for the year at end April at just 14.9%, down from 17.5% over the month of April (and compares with a 2% allocation a year ago). The bid put back into Bunds as Italy caved can be contextualised against this implied short built in German exposure. BOTTOM LINE: The flows data show a clear build in exposure to front end funds and a reduction in exposure to long end funds, thus marking a market-wide duration short in government bonds. There has been less selling of corporates though, and indeed some buying in corporate long end funds. There has also been come impressive buying of European inflation funds in recent months. We note a clear long Italy / short Germany tendency built through April, which we think exacerbated the BTP spread widening and lower bund yield trajectory in recent weeks. 15

16 Developed Markets Net Fund Flows Fig 55 Change in the past week (%) Fig 56 Change in the past week (%).5 % AUM PAST WEEK.3 % AUM PAST WEEK Government Corporate Multi-Product -.3 High Yield Inflation Money Markets Short end Belly Long end Total North America W Europe Total Fig 57 Change in the past month (%) Fig 58 Change in the past month (%) Government Corporate Multi-Product -1. High Yield Inflation Money Markets Short end Belly Long end Total North America W Europe Total Fig 59 Change in the past quarter (%) Fig 6 Change in the past quarter (%) % AUM PAST QUARTER Government Corporate Multi-Product % AUM PAST QUARTER High Yield Inflation Money Markets Short end Belly Long end Total North America W Europe Total Fig 61 Change in the past year (%) Fig 62 Change in the past year (%) 25. % AUM PAST YEAR 25. % AUM PAST YEAR Government Corporate Multi-Product -15. High Yield Inflation Money Markets Short end Belly Long end Total North America W Europe Total 16

17 Global DM Manager Asset Allocations Fig 63 Eurozone allocations one month ago (%) Fig 64 Global DM allocations one month ago (%) Portugal, Ireland, 3.6 Austria, 1.4 Belgium, 4.3 Spain, 13.2 Finland,.7 Greece, 1.5 Slovakia,.1.. Cash, 2.3 France, 24.2 Newzealand,.4 Denmark,.3Norway,.4 Cash, 3.9 Switzerland, 1.2 Sweden, 1. Australia, 2.2 Canada, 4.3 Japan, 7.4 UK, 9.3 USA, 41.1 Netherlands, 8.7 Germany, 14.9 Italy, 19.1 Euro, 24.5 Fig 65 Eurozone allocations two months ago (%) Fig 66 Global DM allocations two months ago (%) Finland,.9 Greece, 1.4. Slovakia,.1. Cash, Portugal, 1.6 France, 23.8 Ireland, 4.3 Austria, 1.7 Belgium, 4.4 Spain, 13. Newzealand,.5 Denmark,.4Norway,.3 Cash, 4.4 Switzerland, 1.3 Sweden, 1. Australia, 2.4 Japan, 6.9 Canada, 4.3 UK, 9.3 USA, 42.2 Netherlands, 8.6 Germany, 17.5 Italy, 15.8 Euro, 22.5 Fig 67 Eurozone allocations one quarter ago (%) Fig 68 Global DM allocations one quarter ago (%) Finland,.9 Greece,.6 Slovakia,.1.. Cash, 2.8 Portugal, France, 23.5 Ireland, 4.9 Austria, 1.8 Belgium, 5. Spain, 1.9 Newzealand,.5 Denmark,.6Norway,.3 Cash, 4.1 Switzerland, 1.3 Sweden, 1. Australia, 2.6 Japan, 7.6 Canada, 4.2 UK, 9.6 USA, 42.2 Netherlands, 9.5 Germany, 16.3 Italy, 17.8 Euro, 21.9 Fig 69 Eurozone allocations one year ago (%) Fig 7 Global DM allocations one year ago (%) Finland,.8Greece,..3.2 Slovakia,.2 Cash, Portugal,.8 France, 22.4 Ireland, 2.8 Austria, 1.9 Belgium, 5.5 Spain, 9.3 Newzealand,.4 Denmark,.5 Norway,.4 Cash, 3.5 Switzerland, 1.4 Sweden,.8 Australia, 2. Canada, 4.1 Japan, 7.3 UK, 1.3 USA, 44.2 Netherlands, 1.9 Germany, 2. Italy, 17.4 Euro,

18 Developed Markets Country Flows Fig 71 Eurozone Change in the past week (%) Fig 72 Non Eurozone Change in the past week (%) % AUM PAST WEEK Total (Selected Eurozone) Spain Slovenia Slovakia Portugal Netherlands Latvia Italy Ireland Greece Germany France Finland Cyprus Belgium Austria Total (Selected Non Eurozone) US Canada UK Switzerland Sweden Norway Denmark Iceland Singapore New Zealand Japan Hong Kong Australia % AUM PAST WEEK Fig 73 Eurozone Change in the past month (%) Fig 74 Non Eurozone Change in the past month (%) Total (Selected Eurozone) Spain Slovenia Slovakia Portugal Netherlands Latvia Italy Ireland Greece Germany France Finland Cyprus Belgium Austria Total (Selected Non Eurozone) US Canada UK Switzerland Sweden Norway Denmark Iceland Singapore New Zealand Japan Hong Kong Australia Fig 75 Eurozone Change in the past quarter (%) Fig 76 Non Eurozone Change in the past quarter (%) Total (Selected Eurozone) % AUM PAST QUARTER Spain Slovenia Slovakia Portugal Netherlands Latvia Italy Ireland Greece Germany France Finland Cyprus Belgium Austria Total (Selected Non Eurozone) US Canada UK Switzerland Sweden Norway Denmark Iceland Singapore New Zealand Japan Hong Kong Australia % AUM PAST QUARTER Fig 77 Eurozone Change in the past year (%) Fig 78 Non Eurozone Change in the past year (%) Total Spain Slovenia Slovakia Portugal Netherlands Latvia Italy Ireland Greece Germany France Finland Cyprus Belgium Austria % AUM PAST YEAR Total (Selected Non Eurozone) US Canada UK Switzerland Sweden Norway Denmark Iceland Singapore New Zealand Japan Hong Kong Australia % AUM PAST YEAR

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