Table Of Content

Contextualizing cross-border fund success Stephanie Clarke Senior Vice President Global Market Intelligence Broadridge Financial Solutions Mapping the Global Market for ETFs and Mutual Funds $37T 4% Total Assets Average organic growth Sep 2017 Jan 2007-Sep 2017 Cross $5.4T Border $21T 1% $5.8T 3% 7% $0.3T 9% $3.5T 11% $1.0T 9% Source: Broadridge Global Market Intelligence A decade of cross border flows Cross Border Fund Market: ETFs and MFs $2.1T Flows since 2007 2017 2006 AUM: AUM: 481 342 $5T $2T 250 306 296 286 187 82 43 59 -187 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 7% Organic Growth Source: Broadridge Global Market Intelligence, excluding cash and FoFs, data to Nov 2017 Cross border demand strong across active and passive Global Cross Border Organic Growth AUM AUM CAGR Cross $17.6T $30.9T $2.3T $4.8T Global Border 5% 5% 7% 14% 4% 13% ETFs 17% 19% 5% 13% Index 9% 9% MFs Active 88% 91% 2% 6% 82% MFs 73% Total 4% 7% 2007 2017 Sep 2007 2017 Sep Source: Broadridge Global Market Intelligence, excluding money market and fund of funds The global appeal of cross border funds $4.5T 5.5% Total Assets Average organic growth Sep 2017 Jan 2007-Sep 2017 78% 4% 15% 1% 2% % of cross border AUM in region Source: Broadridge Global Market Intelligence And openness to cross border fund distribution in open markets Propensity to Flows $B Top 3 markets propensity to invest cross border 2017 to Nov invest in cross border 9% 40% 34 272 177 Europe 51% 3% 25% 22 52 Asia 72% Cross Border Domestic Round trip Source: Broadridge Global Market Intelligence Taking Stock of Active Cross Border Funds 8,562 $4.1T 93 firms 925 funds Funds Assets With AUM over $5B With AUM over $1B Largest Active Cross Border Funds Top Active Cross Border AUM $B Groups, AUM $B BlackRock 1 PIMCO GIS Income Fund Bnd Gl Curr 70 206 JPMorgan AM 2 Bridgewater Pure Alpha Strategy 18% Volatility Derivatives 36 170 PIMCO 3 M&G Optimal Income Fund Bnd Flex 30 169 Amundi 4 JPMorgan Investment Funds - Global Income Fund Mix Income 27 138 AXA 5 Carmignac Patrimoine Mix Bal 27 135 Schroders 6 AB FCP I Global High Yield Portfolio Bnd Gl HY 25 129 Fr Templeton 7 DWS Top Dividende Eq Global Inc 23 121 Prudential/M&G 8 Templeton Global Total Return Fund Bnd Gl Curr 21 120 Fidelity 9 Allianz Global Investors Fund - Allianz Income and Growth Mix Income 21 120 UBS 10 Nordea 1 - Stable Return Fund Allocation 21 105 Source: Broadridge Global Market Intelligence Active X-Border Flow steaming ahead in 2017 $378B $903B 283 funds 506 firms Total net flows Sum of funds in in Sold more than With positive active flow $0.5B flow Top Selling Active Cross Top Selling Active Cross Border Funds Border Groups 2017 YTD November $B Flows ‘17 YTD Nov $B PIMCO 1 PIMCO GIS Income Fund Bnd Gl Curr 46.9 63 GAM Holding 2 M&G Optimal Income Fund Bnd Flex 6.4 20 Prudential Plc 3 Deutsche Floating Rate Notes LC Loans 6.2 19 BlackRock 4 Allianz Global Investors Fund - Allianz Income and Growth Mix Income 6.1 16 Invesco 5 JPMorgan Investment Funds - Global Income Fund Mix Income 6.1 15 AXA Group 6 Muzinich Enhanced Yield Short-Term Fund Bnd Eur Sh-T 5.1 14 7 AB FCP I Global High Yield Portfolio Bnd Gl HY 4.7 Allianz Global Investors 11 Goldman Sachs 8 Templeton Emerging Markets Bond Fund (Lux) Bnd Em Mkt 4.5 11 Marsh McLennan 9 First Eagle Amundi Income Builder Fund Mix Income 4.3 10 Schroders 10 BlackRock Global Funds - Global Multi-Asset Income Fund Mix Income 4.3 10 Source: Broadridge Global Market Intelligence Q&A