THA*

AUS

KOR

JPN

TWN

ISR

HKG

NZL

MYS SGP

TUR

IDN

SAU

PHL

KWT

ARE

BHR QAT

MAC

LBN CHN*,**

Asia-Pacific fund distributionMarket intelligence: fund flows that matter March 2015

UCITS in AsiaMonthly net flow per asset class

Asia-Pacific distribution markets’ growth in 2014Funds and UCITS funds

Asia-Pacific market trends

ContactsLaurent DenayerPartner+352 42 124 8340laurent.denayer@lu.ey.com

Visit ey.com/GFD

France MessierManager+352 42 124 8534france.messier@lu.ey.com

EY analysis is based on fund data provided by

* No growth figure has been calculated for these markets.** CHN and China refer to the Mainland China market.

In 2014, open-ended funds grew by 12% and UCITS grew by 4% in terms of assets under management in the Asia-Pacific distribution markets.

“The heat map above illustrates the growth of the largest Asia-Pacific distribution markets based on the variation of the total net assets held by local investors in domestic and cross-border funds available for sale. The annual growth determining the bubble color is defined by the ratio between the sum of flows in 2014 and the total net assets at the beginning of 2014.

“

””

Annual growth of local distribution markets

Bubble scalingAbout US$500 billionAbout US$250 billionAbout US$100 billion

37%

20% 14%

20%

9% 31%

23% 16%

21%

9%

Market share per asset classby investor type (12/2014)

Market share per asset classfor selected distribution markets (12/2014)

EquityAllocation/balancedFixed incomeMoney marketOthers

Retail share classes(outer circle)

Institutional share classes(inner circle)

EquityAllocation/balancedFixed incomeMoney marketOthers

Equity

-500-400-300-200-100

1000

300200

400500

01/2014

02/2014

03/2014

04/2014

05/2014

06/2014

07/2014

08/2014

09/2014

10/2014

11/2014

12/2014

USD

mill

ions

U

S$ m

illio

ns

Allocation/balanced

-100-50

050

150100

250200

300350

01/2014

02/2014

03/2014

04/2014

05/2014

06/2014

07/2014

08/2014

09/2014

10/2014

11/2014

12/2014

USD

mill

ions

U

S$ m

illio

ns

Fixed income

-1,000

-500

0

500

1,000

1,500

01/2014

02/2014

03/2014

04/2014

05/2014

06/2014

07/2014

08/2014

09/2014

10/2014

11/2014

12/2014

USD

mill

ions

U

S$ m

illio

ns

Money market

-100

-80

-60

-20

-40

20

0

40

60

01/2014

02/2014

03/2014

04/2014

05/2014

06/2014

07/2014

08/2014

09/2014

10/2014

11/2014

12/2014

USD

mill

ions

U

S$ m

illio

ns

31%24% 23%

49%

62%

22%7%

50%

17%

50%45%

52% 52%

52%

14%6%

9%

5%

3% 32%

10%60%

9%11%

6% 8%

10%

7%

7%

38% 17%

51%39%

30%8%

18%39%

41%

21%

6%

51%

20%

2%16%

22% 20%8%

11% 22% 18%

2% 4% 44% 2% 1% 2% 1% 2% 4% 1%4%1% 1%1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AUS CHN KOR JPN TWN THA ISR HKG NZL MYS SGP ARE BHR

FundsAuM

UCITSAuM

The bubble size gives an indication of the market size in terms of assets under management as at 12/2014.

When two bubbles are shown for one market, the inner circle represents the market share and growth of UCITS in that market.

-12% -9% -6% -3% 0% 3% 6% 9% 12%

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Laurent Denayer

Partner+352 42 124 8340laurent.denayer@

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France Messier

Manager

+352 42 124 8534france.m

essier@lu.ey.com

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MorningstarA

ssetFlows

Asset Flows by Morningstar RatingTM ($Mil)

Morningstar Asset Flows by Firm Name Estimated Net Flow Net Assets

Firm Name 1 Year ($Mil) ($Bil)

Vanguard 98,718 165,894

Goldman Sachs 30,762 56,543

BlackRock 28,264 92,006

iShares 25,074 50,707

Dimensional 16,190 28,814

JPMorgan 13,328 48,676

Morgan Stanley 12,385 27,168

MFS 10,583 19,475

Oakmark 7,237 15,859

State Street -1,008 26,206

Date as of June 2014. Source: Morningstar, Inc.

To learn more and to receive a free monthly asset flows commentary,

enabling you to stay current with industry trends, please visit

http://global.morningstar.com/MorningstarAssetFlows

Morningstar 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,

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sponsors. Morningstar provides data on approximately 473,000 investment

offerings, including stocks, mutual funds, and similar vehicles, along with

real-time global market data on more than 12 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 and had

approximately $169 billion in assets under advisement and management

as of June 30, 2014. The company has operations in 27 countries.

Morningstar Asset Flows Data ServiceMorningstar launched its asset flows data service, a tool for monitoring

current asset flows and market share data, in March 2009. Morningstar’s

asset flows data service enables industry professionals to review fund

flows by sector, fund type, fund group, and legal structure to analyse

investment trends and investor sentiment across the asset management

industry. It is available within Morningstar Direct,TM the company’s global

institutional research platform, as well as Morningstar’s data feed

solution, Morningstar Licensed Data.

Morningstar also provides bespoke asset flow datasets (for specific

regions) including:

By firm: Compare inflows and outflows of a bespoke list of asset managers.

By individual firm fund flows: Diagnose month by month fund flows by

asset manager.

By asset curve: Analyse fund flows between equity, fixed income,

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By investor reaction: Use fund flows to assess investor response to major

market events.

By country: Compare UK investor habits with a variety of domiciles

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Morningstar, Inc.

©2014 Morningstar, Inc. All rights reserved. The Morningstar name and logo are registered marks of Morningstar. Marks used in conjunction with Morningstar products or services are the property of Morningstar or its subsidiaries.

3

3

3

3

3

195,413

309,159Q Q Q Q QQ Q Q QQ Q QQ QQ -32,783

-122,897

-92,539

EY’s global fund flow trends and analysis are powered by fund data provided by Morningstar. The EY Global Fund Distribution reports use EY’s proprietary methodology, developed to offer a unique perspective on global fund flows, that also considers SRRI volatility levels, TER bands, fund categories and more. By looking beyond changes in total net assets to looking at estimated fund flows, asset managers and servicers gain insight on market movements dividing fund flows into specific fund categories and investment regions. This information enables fund groups to better plan fund distribution and marketing strategies.

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Helps you perform and monitor the effective registration and maintenance of your UCITS, AIFs and other CIS in each targeted jurisdiction, through our dedicated client-focused team with distribution knowledge.

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