Q4 213 S E P T E M B E R 2 1 4 THIS DOCUMENT IS FOR THE EXCLUSIVE USE OF INVESTORS ACTING ON THEIR OWN ACCOUNT AND CATEGORIZED EITHER AS ELIGIBLE COUNTERPARTIES OR PROFESSIONAL CLIENTS WITHIN THE MEANING OF MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE 24/39/EC. IT IS NOT DIRECTED AT RETAIL CLIENTS. Monthly European ETF Market Trends August 214 in brief Lyxor ETF Marlène Hassine Head of ETF Research marlene.hassine@lyxor.com Contents European ETFs in August 214 OVERVIEW BY ASSET CLASS EQUITY p2 p2 COMMODITIES p2 EUROPEAN US & JAPAN EMERGING MARKET THEMATIC p3 p4 p4 p4 EUROPEAN DEBT MARKET US GOVIES EMERGING MARKET DEBT CREDIT MARKET amounted to EUR6bn, 64% above the one year average. Total Assets under Management rose 2.2% vs. the end of 213, to reach EUR346bn, including a Equity indexations account for 63% of NNA at EUR3.8bn. US indexations have reached a one year record high at EUR1.7bn fuelled by positive economic data. Emerging market of already very tight valuations. EUROPEAN ETFS IN AUGUST 214 NET INFLOWS (EURM) ONE-YEAR THIRD HIGHEST MONTH IN NNA MONTHLY NET NEW ASSETS ON EUROPEAN ETFS HIGH INFLOWS ON DEVELOPED COUNTRY EQUITY & DEVELOPED MARKET GOVIES ETFS MONTHLY NET INFLOWS ON EUROPEAN ETFS BY ASSET CLASS 6 3 7 323 4 239 4 49 6 368 897 3 433 3 615 1 633 2 36 2 851 988 1, 2, 3, 4, 5, 6, 7, 8, European ETF Market NNA Total Equities Developed Market Equities of wh. U.S. Equities of wh. Asia Equities of wh. Europe Equities Emerging Market Equities Global Equities Total Fixed Income Govies Europe Govies US Govies Emerging Markets Corporate Bonds High Yield Money Market Commodities -345-25 171 528 724 564 3 14 45 38 934 1 653 2 537 2 217 3 825 6 3-1, 1, 2, 3, 4, 5, 6, 7, ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56
Q4 213 S E P T E M B E R 2 1 4 OVERVIEW BY ASSET CLASS EQUITY CLOSE TO ONE-YEAR RECORD HIGH ON MONTHLY NET NEW ASSETS ON EQUITY ETFS STRONG INFLOWS ON DEVELOPED MARKETS STILL SUSTAINED INFLOWS ON MONTHLY NET NEW ASSETS ON DEVELOPED VS EMERGING MARKETS EQUITY ETFS 6, 5, 4, 3, 2, 1, -1, 4, 3,5 3, 2,5 2, 1,5 1, 5-5 -1, -2, -1,5 Developed Market Emerging Market CLOSE TO ONE-YEAR RECORD HIGH MONTHLY NET NEW ASSETS ON ETFS RECORD INFLOWS ON DM ETFS MONTHLY NET NEW ASSETS ON DEVELOPED VS EMERGING MARKETS ETFS 3, 1,6 2,5 1,4 1,2 2, 1, 1,5 8 6 1, 4 5 2-2 Developed Market Emerging Market COMMODITIES COMMODITIES INDEXATIONS MONTHLY NET NEW ASSETS ON COMMODITIES ETFS NEGATIVE FLOWS ON PRECIOUS METALS ETFS MONTHLY NET NEW ASSETS ON BROAD & PRECIOUS METALS ETFS 4 4 2 2-2 -2-4 -4-6 -6-8 -8 Broad Precious Metals ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56
Q4 213 S E P T E M B E R 2 1 4 EUROPEAN DECLINIG TREND ON EUROPE MONTHLY NET NEW ASSETS ON EUROPE EQUITY ETFS 2, YET RECORD INFLOWS ON GERMAN MONTHLY NET NEW ASSETS ON GERMAN EQUITY ETFS 1, 1,5 5 1, 5-5 -1, -1,5-5 -2, -1, -2,5 FIRST MONTH OF OUTFLOWS OVER MONTHLY NET NEW ASSETS ON PERIPHERAL EUROPE EQUITY ETFS THE REST OF THE EUROPEAN REGION SAW MONTHLY NET NEW ASSETS ON EUROPEAN REGION EQUITY ETFS 6 5 4 3 2 1-1 2,5 2, 1,5 1, 5-5 -1, -1,5-2 -2, CONTINUED OUTFLOWS ON FINANCIALS NEGATIVE MONTH OVER ONE YEAR MONTHLY NET NEW ASSETS ON FINANCIALS EUROPE EQUITY ETFS VERY LIMITED INFLOWS ON DIVIDEND ETFS MONTHLY NET NEW ASSETS ON EUROPEAN DIVIDEND EQUITY ETFS 4 25 3 2 2 15 1 1-1 5-2 -3-5 ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56
Q4 213 S E P T E M B E R 2 1 4 US & JAPAN RECORD HIGH ON US EQUITY ETFS INFLOWS MONTHLY NET NEW ASSETS ON US EQUITY ETFS POSITIVE BUT DECLINING TREND ON JAPAN MONTHLY NET NEW ASSETS ON JAPAN EQUITY ETFS 2, 1,5 1, 5 7 6 5 4 3 2 1-1 -2-3 -5-4 EMERGING MARKET STILL SUSTAINED INFLOWS ON EMERGING OF ONE YEAR NNA MONTHLY NET NEW ASSETS ON EMERGING EQUITY ETFS 1,5 MAINLY FOCUSED ON BROAD OF INFLOWS MONTHLY NET NEW ASSETS ON BROAD EM EQUITY ETFS* 1, 1, 8 6 5 4 2-5 -2-4 -6-1, -8 THEMATIC CONTINUED OUTFLOWS ON SMID ETFS MONTHLY NET NEW ASSETS ON SMID EQUITY ETFS POSITIVE TREND CONFIRMED FOR SMART MONTHLY NET NEW ASSETS ON SMART BETA EQUITY ETFS 6 25 5 4 3 2 2 15 1 1-1 -2 5-5 -3-1 ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56
Q4 213 S E P T E M B E R 2 1 4 EUROPEAN DEBT MARKET ONE-YEAR RECORD HIGH INFLOWS ON ABOVE LAST JULY INFLOWS MONTHLY NET NEW ASSETS ON EUROPE GOVIES ETFS 1 GERMAN GOVIES EXPERIENCED LIMITED CONSECUTIVE MONTH MONTHLY NET NEW ASSETS ON GERMAN GOVIES ETFS 25 8 6 4 2 15 1 5 2-5 -1-15 -2-2 -25 US GOVIES ONE YEAR RECORD HIGH INFLOWS ON US NOVEMBER RECORD MONTHLY NET NEW ASSETS ON US GOVIES ETFS EMERGING MARKET DEBT DECLINING TREND ON EM DEBT INFLOWS CONSECUTIVE MONTH MONTHLY NET NEW ASSETS ON EMERGING MARKET DEBT ETFS 35 3 25 2 15 1 5 8 7 6 5 4 3 2 1-5 -1 CREDIT MARKET SUSTAINED INFLOWS ON CORPORATE BONDS MONTHLY NET NEW ASSETS ON CORPORATE BOND ETFS SIGNFICANT OUTFLOWS ON MONTHLY NET NEW ASSETS ON HIGH YIELD BOND ETFS 9 8 7 6 5 4 3 2 1-1 6 5 4 3 2 1-1 -2-3 -2-4 ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56
S E P T E M B E R 2 1 4 LYXOR ETF MAIN RISKS Capital at risk: The capital invested is not guaranteed. Replication risk: The fund objectives might not be reached due to index calculation and the efficient fund replication. Fund Liquidity risk: The Fund s liquidity and/or value may be negatively affected by different factors. Counterparty risk: The Fund shall be exposed to the counterparty Currency risk: they may be denominated in a currency different from the index. IMPORTANT INFORMATION This document is of a commercial nature and not of a regulatory nature. It is each investor s responsibility to ascertain that it is accounting and legal advice. The indexes and the trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The indexes are used under license from index sponsors. The Funds promoted by index sponsors and/or its licensors and neither index Lyxor UCITS ETFs referred on this document are open ended mutual (CSSF) and authorized for Marketing Countries Directive. Luxembourg recommend that investors read carefully the risk factors section of the product s prospectus and the Risk (KIID). The prospectus in French for French Lyxor UCITS ETFs and in English for Luxembourg Lyxor UCITS ETFs and the KIID in the local languages of the Marketing Countries are available free of charge of Luxembourg Lyxor UCITS ETFs is only available in English. Updated composition of the product s investment portfolio is UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary These products include a risk of capital loss. The redemption value of these products may be less than the amount initially their entire investment. ETF.RESEARCH@LYXOR.COM I +33 ()1 42 13 59 56 Asset Management Luxembourg shall not assume any responsibility in this respect. Management Luxembourg shall not assume any liability in this respect. The market information displayed in this document is based on data at a given moment and may change from time to time. This document does not constitute an offer for sale of securities in the United States of America. The product herein described amended (the U.S. Securities Act ) and may not be offered or being exempted from registration under the U.S. Securities Act. or any of their respective subsidiaries to purchase or sell the product referred to herein. COPYRIGHT 214 LYXOR INTERNATIONAL ASSET MANAGEMENT ALL RIGHTS RESERVED Notice to UK Investors: This material is issued in the UK by Lyxor the Financial Conduct Authority in the UK under registration number This document and the information contained therein do not constitute an issue prospectus according Exchange. The products are authorized for the offer and distribution Market Supervisory Authority FINMA has authorized Société Ref. 714438 - Studio Société Générale - 9/214