Q3 2017 IPREO REGIONAL FLOW OF FUNDS SERIES
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. At the regional level Scandinavia and Rest of World investors turned bearish on equities whilst the main money centres either side of the Atlantic continued to add exposure to the region. All investment styles, bar Yield oriented investors, were net buyers over the review 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). n Market Overview In the course of the year, the n leading index, ATX, gained + 26.64% (+ 29.75% incl. dividends) and reached 3,315.97 points on 29 September 2017. Thus, the n price index is one of the global performance leaders. At a price increase of 63.15%, Raiffeisen International AG made the biggest price gains in the ATX, followed by S Immo AG with 49.75% and OMV AG with a gain of 46.9%. n equities saw net inflows of +$517.5M in Q3-17 with the bulk of inflows coming from UK &Ireland (+$484.3M), continuing its trend for the third consecutive period. J.P. Morgan Asset Management and BlackRock Investment Management (U.K.) led buying adding an aggregated +$158.1M, the former increasing exposure to BAWAG Group AG and Erste Group Bank AG. North American investment increased only marginally (+$25.4M) in Q3-17 with inflows led by passive investors, i.e. BlackRock Fund Advisors (+$92.5M), while outflows stem from active investors, i.e. Wellington Management Company (-$124.0M). While Scandinavian institutions turned bearish on equities, they were net sellers (-$28.8M) in n stocks driven by Taaleri Wealth Management divesting holdings in Porr and Polytec Holding. Institutional Investment Flow Highlights Net Change by Region Net Change by Style 600.0 800.0 500.0 600.0 400.0 300.0 400.0 200.0 200.0 100.0 0.0 0.0-100.0-200.0-200.0 W. Europe N. America UK & Ireland Scandinavia E. Europe Asia Other Q4-16 Q1-17 Q2-17 Q3-17 -400.0 Agg Gr./Growth Deep Val./Value Index GARP Specialty Yield Alternative Q4-16 Q1-17 Q2-17 Q3-17 Traditionally, Growth investors are the largest invested group in. In Q3-17, these investors added another +$423.6M with Fidelity Management & Research Company showing particular interest in Wienerberger AG increasing exposure to the stock by +$94.0M. Index investors (+$315.8M) added +$315.8M continuing to follow a global trend of increased passive investment. Value investors turned bearish representing the top three sellers in Q3-17. Moneta Asset Management s selling was solely driven by its divestment of Buwog. Ownership by Investor Region vs Issuer Region Ownership by Investor Style vs Issuer Region E. Europe 2.7% E. Europe 0.1% Alternative 1.8% Alternative 2.7% Rest of World 0.6% Rest of World 0.6% Yield 3.2% Yield 2.4% MENA 0.0% MENA 1.2% Specialty 1.0% Specialty 1.3% Asia 1.1% Asia 1.1% Scandinavia 10.1% Scandinavia 16.3% GARP 6.0% GARP 6.2% UK & Ireland 15.5% UK & Ireland 16.3% Index 15.5% Index 18.5% W. Europe 40.0% W. Europe 27.7% Deep Val./Value 32.6% Deep Val./Value 37.0% N. America 30.0% N. America 36.7% Agg Gr./Growth 39.9% Agg Gr./Growth 32.0% Institutional shareholdings in n stocks were dominated by passive investors making up 80.0% of ownership vs. 74.9% in the region. In, passive investors were heavily buying Financials (+$211.0M), while significantly reducing exposure to Technology stocks (-$346.5M). Active investors were following the same trend, turning bullish on Financials (+$166.7M), Energy (+$110.5M) and Industrials (+93.0M).
MOST INVESTED MOST INVESTORS BOUGHT SOLD Flow of Funds: Active vs. Passive Investment (% Chg) Ownership by Orientation vs Issuer Region 60.0% 100.0% 20.0% 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 Q3-17 0.0% 80.0% 74.9% Active Passive Active Passive Most Bought & Sold Sectors - Active Investors Most Bought & Sold Sectors - Passive Investors -200.0-100.0 0.0 100.0 200.0 Basic Materials Consumer Goods Consumer Services Energy Financials Healthcare Industrials Technology Utilities -400.0-200.0 0.0 200.0 400.0 Basic Materials Consumer Goods Consumer Services Energy Financials Healthcare Industrials Technology Utilities Most Bought & Sold Stocks Security Industry Change $M Erste Group Bank AG Banking 258.8 OMV AG Oil, Gas and Coal 119.7 Raiffeisen Bank International AG Banking 109.2 Lenzing AG Chemicals 82.7 Wienerberger AG Materials and Construction 53.8 Andritz AG Industrial Equipment 39.5 RHI Magnesita N.V. Materials and Construction 23.3 Mayr-Melnhof Karton AG Materials and Construction 20.8 Schoeller-Bleckmann Oilfield Equip. AG Oil, Gas and Coal 19.5 Telekom AG Telecommunications 19.0 Includes Active & Passive Investors 746.2 Security Industry Change $M Ams AG Semiconductors -54.6 DO & CO AG Travel Services and Leisure -43.4 Buwog AG Real Estate -21.0 Zumtobel Group AG Materials and Construction -19.3 Polytec Holding AG Chemicals -12.1 voestalpine AG Metals and Mining -10.3 Vienna Insurance Group AG Insurance -9.5 Palfinger AG Industrial Equipment -7.4 AT&S Technologie & Systemtechn Semiconductors -6.9 Flughafen Wien AG Transportation -6.3 Includes Active & Passive Investors -190.7 Top Invested Cities Country / City Total Equity Assets Value Activity # Firms Country / City Total Equity Assets Value Activity # Firms United Kingdom (London) 2,651,845.3 4,966.0 409.6 109 United Kingdom (London) 2,651,845.3 4,966.0 409.6 109 (Vienna) 14,548.9 4,300.2 10.0 23 France (Paris) 394,888.0 1,549.1 4.0 99 Norway (Oslo) 672,231.8 2,747.7-6.4 6 United States (New York) 2,298,875.5 1,248.5 61.3 46 United States (Boston) 4,040,800.9 2,027.4-109.3 27 Spain (Madrid) 67,436.2 394.4-8.4 38 Germany (Frankfurt) 364,426.4 2,014.5 19.1 33 Switzerland (Zürich) 261,835.4 959.1-17.9 34 United States (Malvern) 2,711,243.2 1,553.2 49.9 1 Germany (Frankfurt) 364,426.4 2,014.5 19.1 33 France (Paris) 394,888.0 1,549.1 4.0 99 United States (Boston) 4,040,800.9 2,027.4-109.3 27 United States (San Francisco) 2,274,876.1 1,313.8 97.8 5 Japan (Tokyo) 689,925.5 102.1 3.4 26 United States (New York) 2,298,875.5 1,248.5 61.3 46 Poland (Warsaw) 44,643.1 632.5 0.0 25 United States (Austin) 406,852.8 1,001.8-3.8 2 Luxembourg (Luxembourg) 32,799.5 118.4-0.1 25 Switzerland (Zürich) 261,835.4 959.1-17.9 34 (Vienna) 14,548.9 4,300.2 10.0 23 Netherlands (Amsterdam) 184,980.9 837.6-13.7 9 Canada (Toronto) 639,730.4 449.4 2.2 23 Poland (Warsaw) 44,643.1 632.5 0.0 25 Sweden (Stockholm) 235,861.9 221.6 7.2 22 Belgium (Brussels) 65,792.5 483.6-7.0 6 Switzerland (Geneva) 111,214.8 300.1-44.7 21 Canada (Toronto) 639,730.4 449.4 2.2 23 Italy (Milan) 66,117.2 188.7-12.7 21 Includes Active & Passive Investors 26,084.6 495.8 448 Includes Active & Passive Investors 19,472.2 323.6 572
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 634,510.2 2,704.1 0.0 0.4% 0.0% Wiener Städtische Versicherung AG Growth Unknown 2,017.6 2,017.6 0.0 100.0% 0.0% The Vanguard Group, Inc. P United States Index Low 2,711,243.2 1,553.2 49.9 0.1% 3.3% Erste Sparinvest Kapitalanlage GmbH Growth Medium 3,250.7 1,518.3 32.3 46.7% 2.2% BlackRock Fund Advisors P United States Index Low 1,867,324.6 1,092.5 92.5 0.1% 9.3% Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 395,434.7 979.5-3.8 0.2% -0.4% Shareholder Value Management AG Germany Value Low 2,844.8 910.0 0.0 32.0% 0.0% Fidelity Management & Research Company United States Growth Low 902,830.5 886.6 81.7 0.1% 10.1% APG Asset Management N.V. Netherlands Yield Low 163,547.2 760.6 0.0 0.5% 0.0% BlackRock Advisors (U.K.), LTD P United Kingdom Index Low 167,302.1 523.6 13.5 0.3% 2.6% J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 114,146.8 512.7 79.5 0.4% 18.4% State Street Global Advisors, LTD P United Kingdom Index Medium 134,873.4 450.1 45.7 0.3% 11.3% TIAA-CREF Investment Management, LLC United States Growth Low 306,536.7 432.1 53.9 0.1% 14.3% Lone Pine Capital, LLC (U.S.) HF United States Alternative Very High 22,126.5 388.3 0.0 1.8% 0.0% T. Rowe Price Associates, Inc. United States Growth Low 639,462.4 346.5 2.9 0.1% 0.9% Capital Research Global Investors (U.S.) United States GARP Low 457,806.0 327.3 0.0 0.1% 0.0% AllianceBernstein, L.P. (U.S.) United States Value Medium 160,736.7 315.0 27.7 0.2% 9.6% Bank Vontobel AG (Private Banking) Switzerland Growth Medium 4,531.9 314.0 2.3 6.9% 0.7% Allianz Global Investors GmbH Germany Growth Low 79,322.6 312.8 1.1 0.4% 0.4% Amundi Asset Management S.A. France Value Medium 82,281.2 312.6 54.7 0.4% 21.2% 16,657.4 534.1 Firm Country Style Turnover Equity Assets Value Change % Portfolio % Portfolio Chg Lyxor Asset Management SAS P France Index High 69,721.5 266.4 106.3 0.4% 66.4% BlackRock Fund Advisors P United States Index Low 1,867,324.6 1,092.5 92.5 0.1% 9.3% Fidelity Management & Research Company United States Growth Low 902,830.5 886.6 81.7 0.1% 10.1% J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 114,146.8 512.7 79.5 0.4% 18.4% BlackRock Investment Management (U.K.), LTD United Kingdom Growth Low 367,988.0 217.0 78.6 0.1% 56.8% Amundi Asset Management S.A. France Value Medium 82,281.2 312.6 54.7 0.4% 21.2% TIAA-CREF Investment Management, LLC United States Growth Low 306,536.7 432.1 53.9 0.1% 14.3% The Vanguard Group, Inc. P United States Index Low 2,711,243.2 1,553.2 49.9 0.1% 3.3% State Street Global Advisors, LTD P United Kingdom Index Medium 134,873.4 450.1 45.7 0.3% 11.3% BlackRock Asset Management (Deutschland) AG P Germany Index Low 52,778.3 302.0 38.2 0.6% 14.5% BMO Global Asset Management (U.K.) United Kingdom Value Medium 17,933.4 58.3 36.1 0.3% 163.0% Impax Asset Management, LTD United Kingdom Specialty Medium 6,334.3 75.7 36.1 1.2% 91.0% Kames Capital PLC United Kingdom Growth Medium 25,267.6 33.4 33.4 0.1% 917927.1% Principal Global Investors (Europe), LTD United Kingdom Growth Medium 11,910.9 96.5 32.9 0.8% 51.7% Erste Sparinvest Kapitalanlage GmbH Growth Medium 3,250.7 1,518.3 32.3 46.7% 2.2% Oddo BHF Asset Management SAS France Growth Medium 9,518.0 78.9 29.0 0.8% 58.0% AllianceBernstein, L.P. (U.S.) United States Value Medium 160,736.7 315.0 27.7 0.2% 9.6% Fidelity International Limited - FIL Investment Services ( United Kingdom Growth Medium 102,644.4 159.5 25.9 0.2% 19.4% BlackRock International, LTD United Kingdom Value Medium 19,826.2 31.3 24.5 0.2% 361.1% Fidelity Management & Research (Hong Kong), LTD Hong Kong Growth Medium 17,808.5 154.4 23.1 0.9% 17.6% 8,546.6 982.1 Firm Country Style Turnover Equity Assets Value Change % Portfolio % Portfolio Chg Wellington Management Company, LLP United States Value Low 490,945.4 151.9-124.0 0.0% -44.9% Moneta Asset Management France Value Medium 3,697.8 6.8-77.6 0.2% -92.0% Franklin Mutual Advisers, LLC United States Value Low 54,180.8 17.3-54.3 0.0% -75.9% Pictet Asset Management S.A. Switzerland GARP Low 70,731.7 142.3-45.3 0.2% -24.1% Assenagon GmbH P Germany Index Very High 19,119.3 43.6-44.0 0.2% -50.2% Brandes Investment Partners, L.P. United States Deep Value Low 17,572.3 130.7-41.3 0.7% -24.0% BNP Paribas Asset Management France France Growth Medium 27,038.2 34.2-38.0 0.1% -52.7% Caixabank Asset Management, S.G.I.I.C., S.A. Spain Growth High 14,571.4 161.4-32.0 1.1% -16.6% Zürcher Kantonalbank Switzerland Value Low 35,058.2 136.1-30.0 0.4% -18.1% MFS Investment Management United States Value Low 280,540.5 205.4-26.4 0.1% -11.4% State Street Global Advisors France S.A. P France Index Medium 19,691.2 41.1-25.7 0.2% -38.5% Anima SGR S.p.A. Italy Value High 14,409.4 43.0-21.5 0.3% -33.3% Taaleri Wealth Management, LTD Finland Value Medium 919.6 54.5-20.4 5.9% -27.2% Acadian Asset Management, LLC P United States Deep Value Medium 37,035.7 118.2-19.4 0.3% -14.1% ACTIAM N.V. Netherlands Value Low 17,159.2 98.2-17.7 0.6% -15.3% Delta Lloyd Asset Management N.V. Netherlands Value Medium 7,980.5 49.1-15.8 0.6% -24.4% Templeton Asset Management, LTD Hong Kong Growth Low 13,331.9 3.2-15.8 0.0% -83.3% State Street Global Advisors (SSgA) P United States Index Low 1,232,316.0 129.6-14.9 0.0% -10.3% La Banque Postale Asset Management S.A. France Value Medium 15,025.2 26.2-13.6 0.2% -34.1% Candriam Belgium S.A. Belgium Growth Medium 18,627.7 41.2-13.5 0.2% -24.7% Includes Investors with EUM greater than $100M. 1,633.8-691.0 SWF - Sovereign Wealth Fund; HF - Hedge Fund/Alternative; P - Passive Investor
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