United States 14 Dodd Kittsley, Asia Pacific 24 Raj Seshadri Head of BlackRock ETP Insights Canada 29 Latin America 34 Endnotes 36

Transcription

1 ETP LANDSCAPE INDUSTRY HIGHLIGHTS NOVEMBER 30, 2013 The opinions expressed are as of November 30th, 2013 and may change as subsequent conditions vary. ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

2 What s Inside BlackRock ETP Research Global ETP Overview 3 United States 14 Dodd Kittsley, Europe 19 Head of BlackRock ETP Research Asia Pacific 24 Raj Seshadri Head of BlackRock ETP Insights Canada 29 Latin America 34 Endnotes 36 For inquiries, contact ETPresearch@BlackRock.com ETP FLOWS IN HOLDING PATTERN ON FED UNCERTAINTY 1 Global ETP flows were $15.8bn during November, more moderate relative to the past two months as expectations resurfaced that Fed tapering may come sooner rather than later. November Equity flows revealed a tale of two halves with Developed Markets taking in $21.5bn while Emerging Markets experienced outflows of ($4.7bn). Pan European flows maintained momentum gathering $3.5bn although the pace slowed from the record setting totals witnessed in the prior three months. Year-to-date the category has gathered $24.0bn in contrast to outflows of ($6.5bn) from German ETPs. US Equities gathered $9.9bn, with investors cautious and looking to protect gains amid concerns that valuations may be stretched. Large Cap and Sector funds fared the best but were offset by Small Cap redemptions. Emerging Markets Equities likely the most sensitive to changes in U.S. monetary policy reversed course to post outflows of ($4.7bn) in November following two months of encouraging inflows. Fixed Income ETP flows reached just $0.9bn in November and continued to be split sharply by duration with Short Maturity 2 funds gathering $1.9bn. Broad Aggregate and Short Maturity US exposures as well as European Sovereign debt were in demand, but Investment Grade Corporate continued to experience outflows and High Yield flows moderated after an impressive October. About the ETP Landscape: Industry Highlights Report The ETP Landscape: Industry Highlights provides a summary of ETP assets under management and asset flows at a global level for the most recent month-end period. Subscribe If you are a Professional Investor (or, in Canada, an Accredited Investor) and would like to receive future ETP Landscape reports, please subscribe via our website at: [ 2 ]

3 Global Overview Highlights (US$): 1,2 Global ETP flows during November reached $15.8bn and were heavily concentrated in Developed Markets Equities as they have been throughout much of the year. Investors appetite for risk moderated during the month. Continued evidence of slow yet steady economic growth in the US and worldwide increased the likelihood of accommodative monetary policy for the foreseeable future. However, the window is left open just enough in the US for the Fed to consider a start to tapering during its next few meetings. This delicate balance continued to allow stocks to advance but also left the market uncertain and apprehensive of riskier categories should the rally stall. The BlackRock Risk Sentiment Measure 3 was also indicative of a de-risking environment (see page 6). November readings for both Equity and Fixed Income were lower than their one-year moving average and revealed a preference for more defensive funds tracking indices such as the S&P 500, MSCI EAFE and Barclays US Aggregate Bond. Pan-European Equities eased off the record-setting pace witnessed of late but still accumulated $3.5bn during the month. The growth continued to come from ETPs listed on both sides of the Atlantic and brought total asset gathering during the second half of the year to $24.3bn following negligible flows through June. The pickup in Pan-European flows this year has by-and-large not spread to single country exposures, which saw outflows of ($1.0bn) in November. Country funds have year-to-date outflows of ($1.6bn) as some of the money attracted to German Equities in recent years has reversed ($6.5bn) thus far in This has been partially offset by strong inflows into UK Equity funds. GLOBAL EQUITY CUMULATIVE ETP FLOWS 1 : $218.0bn Cumulative Net (US$bn) J F M A M J J A S O N US Equity Pan European Equity Japan Equity EM Equity PAN EUROPEAN EQUITY FLOWS 1 Net : $24.0bn (2.3) (1.5) 0.7 Other Developed (9.8) J F M A M J J A S O N US Listed Europe Listed Other Regions GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS 1,2 : $25.7bn After exhibiting signs of strength during the fall Emerging Markets Equities flows came under pressure during the first half of November. The majority of net redemptions were attributable to the impact of Fed uncertainty on broad market ETPs, which shed ($3.6bn). However, the outflows were halted toward the end of the month after a meeting of top Chinese officials to discuss social and market reforms aimed at boosting the country s economic growth was well received. This led to November inflows of $1.2bn for funds with singlecountry Chinese exposures. Two other Emerging Markets countries experienced material outflows this month. Brazil, which saw outflows of ($0.7bn), has been out of favor this year while Korea, where outflows totaled ($0.8bn), has not (9.0) J F M A M J J A S O N [ 3 ]

4 Global Overview (cont d) Highlights (US$): 1,2 US Equity and Broad Developed Markets led asset gathering for the month with $9.9bn and $7.2bn. Funds tracking the S&P 500 and MSCI EAFE indices drove much of the activity. These two categories also account for 81 global ETP flows year-to-date. NOVEMBER RESULTS AT A GLANCE 1 (US $billions) November 2013 October 2013* December 2012 November 2012 The US Equity activity in November was predominantly from core exposures such as Large Cap, which saw inflows of $8.7bn, and Small Cap, which is among the more fully valued segments of the market and had outflows of ($2.4bn). Sectors contributed an additional $3.4bn with investors putting the most money to work in Industrial, Health Care, Energy and Consumer Cyclical ETPs. Monthly ,361 2,325 1,944 1,880 # of ETPs 4,981 4,969 4,759 4,741 *Oct-2013 restated with additional Asia Pacific and Europe data Fixed Income flows were muted but positive during the month. The duration rotation continued with Short Maturity 2 capturing $1.9bn while outflows for all other maturities were ($1.0bn). GLOBAL 13-MONTH ROLLING FLOWS 1 Net : $209.9bn (US$bn) The most popular Fixed Income ETPs in November were Broad Aggregate US funds, counter to the trend most of the year. Investment Grade Corporate continued to see outflows while High Yield Corporate attracted $0.5bn, mostly from Short Maturity funds. Riskier Fixed Income ETP segments such as Emerging Markets debt were out of favor. Notably, Emerging Markets debt has modest year-to-date inflows but splitting out local currency ETPs changes the picture as these funds have attracted $3.4bn. European Fixed Income ETPs gathered $0.4bn during November (mostly European Sovereign bonds) and haven t been impacted by the turmoil related to Fed tapering, posting year-to-date inflows of $6.3bn. This gives European exposures a high organic growth rate compared to US Fixed Income. Amid signs that inflation is set to remain low, Gold outflows continued to the tune of ($1.4bn) in November and have now reached ($36.4bn) year-to-date, representing a consistent and significant drag on industry growth. Equity Fixed Income Commodities & Others CUMULATIVE EQUITY ETP FLOWS 1 YTD 2013 Equity : $218.0bn CUMULATIVE FIXED INCOME ETP FLOWS1 YTD 2013 Fixed Income : $25.7bn Cumulative Net (US$bn) Cumulative Net (US$bn) [ 4 ] [ 4 ]

5 Year-To-Date Overview GLOBAL ETP YTD FLOWS BY EXPOSURE 1 (US$bn) Jan-Nov 2013 Jan-Nov 2012 Annual 2012 GLOBAL ETP CUMULATIVE FLOWS 1 YTD in 2013: $209.9bn J F M A M J J A S O N D GLOBAL EQUITY ETP YTD FLOWS BY EXPOSURE 1 YTD in 2013: $218.0bn (up 63% from $133.8bn YTD 2012) 2012 YTD [ 5 ]

6 Beyond Raw : Capturing Investor Sentiment Overview 3 The BlackRock Risk Sentiment Measure 3 indicated in November that investors gravitated toward more defensive categories than in recent months. For US-listed Equity ETPs which make up 83 YTD Equity ETPs flows globally risk sentiment remained low in November for the second consecutive month. Inflows into less risky US Large Cap and Broad Developed Markets funds were accompanied by outflows for higher risk US Small Cap and Broad Emerging Markets ETPs. US-listed Fixed Income risk sentiment declined materially in November after trending upward for much of the year. The greatest outflows during the month came from Investment Grade and Long-Duration Government Bond funds, both of which fall in the higher risk group. By contrast, Broad Aggregate and Short Maturity US funds registered the healthiest flows and both fall into the lower risk group. Background and Methodology Over longer horizons, our research shows that Risk Sentiment exhibits greater persistence than raw flows alone, consistent with the idea that the composition of flows is indicative of investor sentiment and growing ETP adoption. To better understand and capture shifts in investor sentiment, we developed the BlackRock Risk Sentiment Measure 3 using net inflows into all US-listed ETPs and the daily price volatility since The measure is computed by asset class (e.g., Equity, Fixed Income) and for different time periods (weekly, monthly, etc.) to reflect shifts in risk appetite that are harder to discern from raw flow data. To compute risk sentiment within a particular asset class, we sort ETPs into two groups, high and low risk, based on their 60-day realized return volatility. For example, currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners while the low risk group includes Large Cap Equities and Preferred Stock ETPs. Within Fixed Income, High-Yield Bond funds would fall into the high risk group while Short-Term Treasury funds are in the low risk group. Risk sentiment is then defined as the total dollar inflows/outflows for the riskier group of ETPs less those of the safer group, scaled by the dispersion in flows across the sample. Zero on the scale below represents the 1-year moving average. It s important to note the BlackRock Risk Sentiment Measure considers risk sentiment excluding cash. EQUITY RISK FLOW SENTIMENT MEASURE 60 Risk Sentiment (20) (40) (60) J F M A M J J A S O N D J F M A M J J A S O N More risk tolerant 1-Year Moving Avg. More risk averse FIXED INCOME RISK FLOW SENTIMENT MEASURE 60 Risk Sentiment (20) (40) (60) J F M A M J J A S O N D J F M A M J J A S O N More risk tolerant 1-Year Moving Avg. More risk averse [ 6 ]

7 By Listing Region Highlights (US$): 1 Funds listed in the US account for 70.7 global ETP assets YTD 2013 flows into US-listed products represent 81 the global total compared to 71% for full-year 2012 The US has the highest asset growth rate so far this year at 24%, followed by Asia Pacific with 23% Europe had the 5 th consecutive month of inflows, with $3.7bn in November. NOVEMBER NET FLOWS BY LISTING REGION 1 ASSET GROWTH RATES AND # OF ETPs 1 (# ETPs) Bubble 110 size = US ($bn) 90 $1, Growth in # ETPs Latin Canada America $59 $11 Europe $414 Asia Pacific $ % -5% 0% 5% 10% 15% 20% 25% 30% Commodities & Others Fixed Income Equity AUM Growth LISTING REGION VIEW 1 By Listing Region Nov 2013 Net YTD 2013 Nov 2013 % Asset Market Share Number of Products FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [ 7 ]

8 ETP and Mutual Fund Monthly Highlights (US$): 1,4 ETP and mutual funds flows have exhibited similar patterns this year particularly for Equities as opposed to the divergence seen during Developed Markets Equity mutual fund inflows of $153.2bn year-to-date are a mirror image of last year s outflows. Developed Markets Equity ETPs have gathered $227.9bn, stretching the lead over mutual funds during November and on target to double from their 2012 total. Emerging Markets Equity mutual fund flows are negligible year-to-date but since January have held up better than ETPs, which now have total redemptions of ($9.8bn) during Fixed Income mutual fund flows were slightly positive in November after 5 months of outflows. Year-to-date redemptions are ($42.7bn), down $200bn from peak inflows of $160.9bn in May before concerns over Fed tapering had set in. ETPs are below 2012 levels, but remain positive year-to-date at $25.7bn. Money Market mutual fund inflows were modest in November. The year-to-date pattern is similar to last year. Outflows have recovered to ($78.2bn) after bottoming at ($158.6bn) during June in the immediate aftermath of the Fed s initial comments on tapering. Money Market ETPs are not shown below as assets are minimal. are included with those of Fixed Income funds. DEVELOPED MARKETS EQUITY FLOWS 1,4 EMERGING MARKETS EQUITY FLOWS 1, (50) (100) (150) (200) (250) (206) J F M A M J J A S O N D (10) (20) 14 (1.6) (9.8) J F M A M J J A S O N D FIXED INCOME FLOWS 1, (50) (100) (42.7) J F M A M J J A S O N D MONEY MARKET MUTUAL FUND FLOWS 1, (50) (100) (78.2) (150) (200) J F M A M J J A S O N D ETP MF ETP MF [ 8 ]

9 Largest Year-To-Date Fund Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 WisdomTree Japan Hedged Equity Fund DXJ US 9,079 11,840 SPDR S&P 500 SPY US 8, ,584 ishares MSCI Japan EWJ US 6,499 13,350 ishares Core S&P 500 IVV US 6,390 51,558 Vanguard European VGK US 6,260 12,742 Vanguard Total Stock Market VTI US 6,083 37,933 ishares MSCI EAFE EFA US 5,440 51,626 Vanguard FTSE Developed Markets ETF VEA US 5,166 18,442 Vanguard Short-Term Bond BSV US 4,845 14,089 PowerShares Senior Loan Portfolio BKLN US 4,778 6,243 Grand Total 62, ,407 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 [ 9 ]

10 Largest Asset Gathering ETPs Launched in 2013 Highlights (US$): new ETPs and 54 individual share class listings debuted around the globe so far this year and have accumulated $24.3bn in assets. 200 products and 11 individual share class listings were delisted this year with combined assets of less than $2.1bn. Product Name (US$mn) 1 Bloomberg Ticker Exposure Listing Region Launch Date as of November ,422 [ 10 ]

11 Global ETP Multi-Year Asset Growth and Top 10 Providers Global ETP & Number of ETPs by Year 1 ($bn) # of ETPs 4,981 $2,400 4,759 5,000 $2,200 4,311 $2,000 3,543 4,000 $1,800 $1,600 2,694 $1,400 3,000 $1,200 2,220 1,541 2,361 $1,000 1,944 2, $800 1,483 1,525 $ , ,000 $ $ $ Nov-13 Global ETP Providers Ranked by (US$bn) 1 Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs Change % Market Share ishares (0.4) State Street (0.9) Vanguard Invesco PowerShares Deutsche Asset & Wealth Management (db x-trackers) (1.0) (4.9) (0.2) Lyxor / Soc Gen (1.4) (0.3) Nomura Group WisdomTree Investments ProShares Van Eck Global (0.2) (5.1) (0.5) 185 Others , (0.2) Grand Total 2, , * Providers measured at parent company level. [ 11 ]

12 ETP by Exposure: Developed Equity Exposure (US$mn) 1 Large Cap 8,710 44, , Mid Cap (24) 13, , Small Cap (2,427) 14, , US Size and Style Micro Cap (73) ,039 4 Total Market , , Extended Market (65) 1, , Preferred Stock (334) (1,391) (0.7) 12, US Size and Style Total 6,713 81, , Basic Materials 221 1, , Consumer Cyclicals 718 2, , Consumer Non-cyclicals , Energy 795 5, , Financials 329 6, , Health Care 966 5, , US Sector Industrials 1,166 4, , Real Estate 7 2, , Technology (354) 5, , Telecommunications 42 (7) () 1,116 6 Utilities (576) (1,345) (0.6) 7, Theme (14) ,085 8 US Sector Total 3,424 34, , US Strategy (286) 12, , US Total 9, , , Canada Equity (188) (1,100) (0.5) 32, North America Regional Equity , North America Total 9, , ,022, Pan European Size and Style Large Cap 1,326 6, , Mid Cap , Small Cap 361 1, , Total Market 1,571 13, , Pan European Size and Style Total 3,270 22, , Pan European Sector , Pan European Strategy (30) , Pan European Total 3,539 23, , Germany (1,349) (6,452) (3.1) 39, Country Nov 2013 Net Net YTD # ETPs U.K , , Switzerland (17) , France (75) (1,069) (0.5) 5, Others 271 2, , Europe Single Country (985) (1,569) (0.7) 86, Total Europe Total 2,554 22, , Regional 404 1, , Asia-Pacific Country 1,632 34, , Asia Pacific Total 2,036 35, , Broad-Based Global /Global ex-us 7,192 41, , Developed Equity Total 21, , ,574, ,172 [ 12 ]

13 ETP by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Broad Emerging Markets (3,584) (5,191) (2.5) 127, Broad EM Broad Frontier Markets Broad EM Total (3,573) (4,839) (2.3) 128, Regional EM (171) (1,928) (0.9) 7, Brazil (674) (4,658) (2.2) 7, China 1,212 (968) (0.5) 58, India , EM Single Country Russia (346) (805) (0.4) 3, South Korea (774) 2, , Mexico (398) 1, , Others 40 (184) (0.1) 22, EM Single Country Total (906) (3,040) (1.4) 128, Emerging Markets Equity Total (4,650) (9,807) (4.7) 264, Equity Total 16, , ,838, ,949 Broad/Aggregate , Govt/Corp , , Emerging Markets (489) , Municipal 55 (472) (0.2) 11, Government - Sovereign 732 5, , Government - US Treasury 72 1, , Government Total 804 7, , Fixed Income Inflation (575) (6,168) (2.9) 25, High Yield Corporate 503 6, , Investment Grade Corporate (361) , Money Market (361) (1,641) (0.8) 4, Mortgage (163) (810) (0.4) 7, Others 375 7, , Fixed Income Total , , Broad Market (119) (395) (0.2) 17, Agriculture (125) (10) () 5, Energy (285) (1,366) (0.7) 7, Commodities Industrial Metals (93) (86) () 1, Precious Metals - Gold (1,366) (36,416) (17.3) 74, Precious Metals - Silver (135) , Precious Metals - Others 38 (41) () 4, Precious Metals - Total (1,464) (35,488) (16.9) 90, Commodities Total (2,086) (37,347) (17.8) 122, Alternatives Volatility 7 1, , Others , Alternatives Total 22 1, , Asset Allocation 109 1, , Currency (39) , Israel ETP , Global ETP Total 15, , ,360, ,981 [ 13 ]

14 United States ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

15 US ETP Multi-Year Asset Growth and Top 10 Providers US ETP & Number of ETPs by Year 1 ($bn) # of ETPs $1,800 $1, $1,400 $1,200 $1,000 $800 $600 $400 $200 $ , ,350 1,012 1, Nov US ETP Providers Ranked by (US$bn) 1 Change Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs % Market Share ishares (2.1) State Street (1.7) Vanguard Invesco PowerShares WisdomTree Investments ProShares Van Eck Global (0.2) (5.1) (0.7) Guggenheim First Trust Portfolios Charles Schwab other US providers Grand Total 1, , * Providers measured at parent company level. [ 15 ]

16 US ETPs Ranked by Year-To- Date Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 WisdomTree Japan Hedged Equity Fund DXJ US 9,079 11,840 SPDR S&P 500 SPY US 8, ,584 ishares MSCI Japan EWJ US 6,499 13,350 ishares Core S&P 500 IVV US 6,390 51,558 Vanguard European VGK US 6,260 12,742 Vanguard Total Stock Market VTI US 6,083 37,933 ishares MSCI EAFE EFA US 5,440 51,626 Vanguard FTSE Developed Markets ETF VEA US 5,166 18,442 Vanguard Short-Term Bond BSV US 4,845 14,089 PowerShares Senior Loan Portfolio BKLN US 4,778 6,243 Grand Total 62, ,407 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 [ 16 ]

17 US ETP by Exposure: Equity Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Broad-based 7, , , Growth , , Large Cap Value , , High Dividend Yield , Risk-adjusted (7.7) US Size and Style US Large Cap Total 8, , , Mid Cap , , Small Cap (2,359.5) 13, , Micro Cap (72.5) , Total Market , , Extended Market (65.5) 1, , Preferred Stock (334.5) (1,391.3) (0.8) 12, US Size and Style Total 6, , , Basic Materials , , Consumer Cyclicals , , Consumer Non-cyclicals , Energy , , Financials , , Health Care , , US Sector Industrials 1, , , Real Estate , , Technology (353.6) 5, , Telecommunications 42.2 (6.9) () 1, Utilities (576.8) (1,347.4) (0.8) 7, Theme (13.5) , US Sector Total 3, , , US Strategy (347.5) 11, , US Equity Total 9, , , Global , , Global Ex-U.S. 4, , , Developed International Equity North America (44.2) (503.6) (0.3) 8, Europe 2, , , Asia-Pacific 1, , , Middle East & Africa Developed International Total 9, , , Broad (3,794.0) (3,302.1) (2.0) 110, Emerging Markets Equity Regional (41.0) (661.1) (0.4) 3, Country (750.2) (4,684.4) (2.8) 33, EM Equity Total (4,585.2) (8,647.7) (5.1) 147, Equity Total 14, , ,338, ,001 [ 17 ]

18 US ETP by Exposure: Fixed Income, Commodities & Others Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Broad/Aggregate , Govt/Corp , , Emerging Markets (377.3) (2,767.5) (1.6) 9, Investment Grade Corporate (429.2) (912.5) (0.5) 52, High Yield Corporate , , Fixed Income Municipals 52.3 (690.6) (0.4) 11, Sovereign , U.S. Government (437.0) , Inflation (370.9) (5,449.4) (3.2) 21, Mortgage (127.1) (572.6) (0.3) 6, Others , , Fixed Income Total (5.1) 11, , Broad Market (104.9) , Agriculture (125.2) (120.7) (0.1) 2, Energy (34.9) (1,219.9) (0.7) 4, Industrial Metals (18.5) (29.5) () Commodities Precious Metals Gold (1,235.3) (26,074.7) (15.4) 42, Silver (108.5) , Other , Precious Metals Total (1,338.1) (25,407.2) (15.0) 52, Commodities Total (1,621.7) (26,588.1) (15.7) 70, Currency (17.0) , Volatility , , Alternatives Others , Alternatives Total , , Asset Allocation , , US ETP Total 12, , ,669, ,531 [ 18 ]

19 Europe ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

20 Europe ETP Multi-Year Asset Growth and Top 10 Providers Europe ETP & Number of ETPs by Year 1 ($bn) # of ETPs $450 $400 $350 $ $250 $200 $150 $100 $50 $ Nov Europe ETP Providers Ranked by (US$bn) 1 Change Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs % Market Share ishares Deutsche Asset & Wealth Management (db x-trackers) (1.3) (5.8) (0.5) Lyxor / Soc Gen (1.4) (1.0) UBS Source Holdings ETF Securities (0.2) (3.8) 307 (8.7) (2.8) Amundi ZKB (0.1) (2.6) 9 (6.6) (2.1) State Street Commerzbank (0.3) (0.6) (0.1) 34 other providers in Europe (13.9) (4.7) Grand Total , * Providers measured at parent company level. [ 20 ]

21 Europe ETPs Ranked by YTD Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 ishares MSCI Japan EUR Hedged UCITS ETF IJPE LN Vanguard S&P 500 UCITS ETF VUSA LN ishares Euro Government Bond 3-5yr UCITS ETF IBGX LN ishares EURO STOXX 50 UCITS ETF (Inc) EUN2 GY ishares STOXX Europe 600 (DE) SXXPIEX GY ishares EURO STOXX 50 (DE) SX5EEX GY ishares MSCI World UCITS ETF (Inc) IWRD LN ishares Euro Corporate Bond UCITS ETF IEBC LN db x-trackers II IBOXX Euro Sovereigns Eurozone Yield Plus I.. XY4P GY PIMCO Euro Enhanced Short Maturity Source ETF PJS1 GY Grand Total 2,563 1,873 1,409 1,334 1,213 1,208 1, ,645 3,942 2,127 2,205 8,358 4,077 6,981 7,180 3,477 1,555 1,400 41,303 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 db x-trackers DAX ETF XDAX GY (7,666) 3,221* 3,032 ETFS Physical Gold PHAU LN (2,217) 4,387 GBS Bullion Securities GBS LN (1,514) 4,160 Physical Gold Source P-ETC SGLD LN (1,356) 1,752 ishares MSCI Emerging Markets UCITS ETF (Inc) IEEM LN (1,087) 5,688 db x-trackers II EONIA Total Return Index ETF XEON GY (1,063) 610* 578 ZKB Gold ETF (CHF) ZKB Gold ETF (USD) ZGLD SW ZGLDUS SW (896) (798) 5,711* 3,304 Share Class of ZGLD 1,582 SW ishares Euro Corporate Bond Large Cap UCITS ETF IBCS GY (737) 3,876 Lyxor ETF Euro Cash (EONIA) CSH FP (678) 764 Grand Total (18,013) 30,169 29,123 * Representing aggregate AUM attributed from all individual share classes. are attributed per share class. [ 21 ]

22 European ETP by Exposure: Equity Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Pan-European Size and Style Large Cap , , Mid Cap , Small Cap , , Total Market , , Size and Style Total 1, , , Basic Materials , Consumer Cyclicals Consumer Non-cyclicals (21.3) (110.4) (0.6) Energy 21.0 (49.2) (0.3) Financials , Health Care (1.3) (3.0) () 1, Pan European Sector Industrials , Real Estate 18.4 (182.5) (1.1) 2, Technology (7.0) (118.7) (0.7) Telecommunications Utilities Theme (47.9) (7.6) () Sector Total , Pan European Strategy (36.1) , Nordic Regional Pan European Total 1, , , Germany (1,511.3) (7,340.9) (42.7) 33, U.K. (26.9) 1, , Switzerland (24.6) , Europe Single Country France (24.9) (1,082.5) (6.3) 4, Sweden , Italy , Others , Single Country Total (1,342.6) (5,487.8) (31.9) 71, Europe Equity Total , , North America , , Asia-Pacific 1, , , Global 1, , , Developed Equity Total 2, , , Broad (1,636.0) (9.5) 16, Emerging Markets Regional (127.9) (1,290.3) (7.5) 4, Equity Country 19.9 (593.3) (3.4) 13, EM Equity Total 91.2 (3,519.6) (20.5) 34, Equity Total 2, , , ,025 [ 22 ]

23 European ETP by Exposure: Fixed Income, Commodities & Others Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Broad/Aggregate , Govt/Corp , , Emerging Markets 3.4 1, , Government Sovereign , , U.S. Government , , Government Total 1, , , Fixed Income High Yield Corporate , , Inflation (176.0) (537.6) (3.1) 4, Investment Grade Corporate , Money Market (393.8) (1,756.2) (10.2) 4, Mortgage (36.0) (237.0) (1.4) 1, Others , Fixed Income Total 1, , , Broad Market (13.5) (565.1) (3.3) 5, Agriculture , Energy 19.0 (129.4) (0.8) 3, Industrial Metals (74.2) (57.1) (0.3) 1, Commodities Gold (141.2) (10,247.5) (59.6) 26, Precious Metals Silver (20.5) , Other 31.9 (69.6) (0.4) 2, Precious Metals Total (129.8) (9,982.3) (58.0) 32, Commodities Total (198.3) (10,624.2) (61.8) 46, Volatility Alternatives Others 2.1 (160.4) (0.9) Alternatives Total 7.4 (101.8) (0.6) 1, Asset Allocation Currency (20.5) Europe ETP Total 3, , , ,131 [ 23 ]

24 Asia Pacific ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

25 Asia Pacific ETP Multi-Year Asset Growth and Top 10 Providers Asia Pacific ETP & Number of ETPs by Year 1 ($bn) # of ETPs $ $ $ $120 $ $ $ $ $ $ Nov-13 Asia Pacific ETP Providers Ranked by (US$bn) 1 Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs Change % Market Share Nomura Group Nikko Asset Management (0.3) Daiwa Securities Group State Street (0.1) (0.3) 18 (1.9) ishares (0.1) (1.2) Samsung Group (0.7) (0.2) China AMC HSBC (0.2) (0.5) Harvest Fund Management (0.1) (1.8) 7 (1.7) (2.0) Mitsubishi Group (0.5) other providers in Asia Pacific (4.2) Grand Total (0.5) * Providers measured at parent company level. [ 25 ]

26 Asia Pacific ETPs Ranked by YTD Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 Daiwa ETF TOPIX 1305 JP 3,437 8,623 ChinaAMC CSI 300 Index ETF CH 2,841 3,210 NIKKEI 225 ETF 1321 JP 2,623 17,874 Daiwa ETF NIKKEI JP 2,012 8,338 Listed Index Fund TOPIX 1308 JP 1,321 7,419 Listed Index Fund JP 1,070 8,630 E Fund CSI 300 ETF CH TOPIX ETF 1306 JP ,730 SHANGHAI SSE180 ETF CH 739 2,182 CSOP FTSE China A50 ETF HK 681 3,219 Grand Total 16,474 75,108 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 HARVEST Shanghai & Shenzhen CH (1,926) 4,749 Huatai-Pinebridge CSI CH (1,368) 2,496 E Fund CSI 100 A-Share ETF HK (1,355) 267 E Fund SZSE CH (1,106) 2,099 China AMC CSI HK (629) 1,583 Yuanta/P-shares Taiwan Top 50 ETF 0050 TT (529) 2,864 Tracker Fund of Hong Kong (TraHK) 2800 HK (342) 7,429 China SME ETF CH (277) 238 SPDR S&P/ASX 200 Fund STW AU (211) 2,034 Shenzhen Stock Exchange Component Stock Index ETF CH (162) 385 Grand Total (7,906) 24,143 [ 26 ]

27 Asia Pacific ETP by Exposure: Equity Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Asia Pacific Regional Equity (1.5) (88.4) (0.5) Large Cap (288.3) 7, , Mid Cap Japan Equity Size and Style Small Cap () () () Total Market (62.3) 6, , Size and Style Total (350.6) 13, , Sector , Strategy (25.0) Japan Equity Total (275.3) 14, , Australia , Hong Kong (161.9) (143.6) (0.8) 12, New Zealand Singapore 0.1 (10.1) (0.1) Developed Asia Pacific Single Country Total (407.4) 14, , Asia Pacific Equity Total (409.0) 14, , Other Developed Equity (Europe, North America, Global and Global ex-us) Developed Equity Total (406.4) 14, , Broad Emerging Markets Equity 4.2 (22.7) (0.1) Regional Emerging Markets Equity China Equity Size and Style Large Cap , , Mid Cap (3.9) (123.1) (0.6) Small Cap (62.3) , Total Market (33.4) (3,975.1) (21.0) 14, Size and Style Total , Sector , Strategy (5.1) (7) (0.4) China Equity Total , , Large Cap (153.2) , Mid Cap - (2.4) () Size and Style Small Cap South Korea Equity Total Market (631.8) , Size and Style Total (785.0) 1, , Sector (11.0) (13.0) (0.1) Strategy 2.0 (19.1) (0.1) South Korea Equity Total (794.0) 1, , Other EM Single Country Equity (623.0) (3.3) 5, EM Single Country Equity Total (39.2) 1, , Emerging Markets Equity Total (35.0) 1, , Equity Total (441.4) 16, , [ 27 ]

28 Asia Pacific ETP by Exposure: Fixed Income, Commodities & Other Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Broad/Aggregate Emerging Markets (121.9) 1, , Government , Fixed Income High Yield Corporate Inflation Investment Grade Corporate Money Market Fixed Income Total (117.8) 2, , Broad Market Agriculture - (0.5) () Energy 6.0 (25.0) (0.1) Industrial Metals Commodities Gold 10.6 (5.0) () 2, Precious Metals Silver Other (6.9) () Total , Commodities Total 19.0 (19.1) (0.1) 2, Alternatives Volatility Alternatives Total Asset Allocation Currency (2.0) Asia Pacific ETP Total (531.5) 18, , [ 28 ]

29 Canada ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

30 Canada ETP Multi-Year Asset Growth and Top 10 Providers Canada ETP & Number of ETPs by Year 1 ($bn) # of ETPs $ $ $20 $ Nov Canada ETP Providers Ranked by (US$bn) 1 Change Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs % Market Share ishares (0.2) (1.5) 93 (2.6) (7.3) BMO Horizon (Mirae Asset) (0.3) Invesco PowerShares Vanguard First Asset Capital RBC Purpose Investments First Trust Portfolios Barclays 3 Grand Total (0.1) * Providers measured at parent company level. [ 30 ]

31 Canada ETPs Ranked by YTD Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 BMO S&P/TSX Laddered Preferred Share Index ETF ZPR CN BMO S&P 500 ETF ZSP CN BMO International Equity Hedged to CAD Index ETF ZDM CN BMO Mid-Term US IG Corporate Bond Index ETF ZIC CN Horizons BetaPro S&P/TSX 60 Index ETF HXT CN ishares 1-5 Yr Laddered Corporate Bond CBO CN BMO Mid-Term US IG Corporate Bond Hedged to CAD Index.. ZMU CN PowerShares Ultra DLUX Long Term Government Bond Index PGL CN ishares S&P US Dividend Growers (CAD-Hedged) CUD CN Horizons AlphaPro Floating Rate Bond ETF HFR CN Grand Total , * * ,818* 1, * * 313 6,734 6,715 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 ishares S&P/TSX 60 XIU CN (1,673) 11,232 BMO Dow Jones Canada Titans 60 Index ETF ZCN CN (490) 964 ishares DEX All Corporate Bond XCB CN (442) 1,405 ishares DEX Universe Bond XBB CN (380) 1,459 ishares S&P/TSX Energy XEG CN (297) 597 BMO Short Federal Bond Index ETF ZFS CN (203) 189 ishares DEX Real Return Bond XRB CN (185) 399 Horizons BetaPro NYMEX Crude Oil Bull Plus HOU CN (122) 117 BMO Aggregate Bond Index ETF ZAG CN (116) 728 ishares S&P/TSX Capped Composite XIC CN (114) 1,251 Grand Total (4,021) 18,341 * Representing aggregate AUM attributed from all individual share classes. are attributed per share class. [ 31 ]

32 Canada ETP by Exposure Exposure (US$mn) 1 Nov 2013 Net 2013 YTD Net YTD # ETPs North America Regional Equity Large Cap (196.6) (1,717.2) (40.6) 13, Small Cap Total Market , Preferred Stock , , Size and Style Size and Style Total (104.1) (404.5) (9.6) 18, Basic Materials Consumer Non-cyclicals Energy (11.3) (292.8) (6.9) Canada Financials (23.2) , Industrials Real Estate (3.1) , Technology - (5.9) (0.1) Sector Utilities (2.8) Theme Sector Total (31.2) (150.8) (3.6) 6, Strategy , Canada Equity Total (98.3) (109.3) (2.6) 27, U.S , , North America Equity Total , , Other Developed Equity (Asia Pac, Global and Global ex-us) , Developed Equity Total , , EM Equity Total Equity Total , , Broad/Aggregate (31.3) (475.1) (11.2) 2, Govt/Corp , Emerging Markets (3.9) Municipal Government (30.4) (93.5) (2.2) 2, Fixed Income Inflation (27.8) (181.5) (4.3) High Yield Corporate (1.5) , Investment Grade Corporate , Money Market Others Fixed Income Total (1) 1, , Broad Market (1.0) (19.5) (0.5) Agriculture Energy (275.4) Industrial Metals - (0.9) () Commodities Gold - (88.5) (2.1) Precious Metals Silver (8.5) (15.4) (0.4) Other Precious Metal Total (8.5) (103.9) (2.5) Commodities Total (284.9) (115.2) (2.7) 1, Volatility (59.5) (12.9) (0.3) Alternatives Others (2.9) (3.7) (0.1) Alternatives Total (62.4) (16.7) (0.4) Asset Allocation Currency Canada ETP Total (126.5) 4, , [ 32 ]

33 Latin America ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS

34 Latin America ETP Multi-Year Asset Growth, Top Providers and by Exposure Latin America ETP & Number of ETPs by Year 1 ($bn) $ # ETPs $ $5 $ Nov Latin America ETP Providers Ranked by (US$bn) 1 Provider * Nov-2013 % Market Share Nov-2013 Net YTD 2013 Net # ETPs Change % Market Share Latin America ETP by Exposure Exposure (US$mn) 1 Nov 2013 Net Net YTD # ETPs Equity Emerging Markets * Providers measured at parent company level. Mexico (241.9) , Colombia , Brazil 72.4 (595.8) (232.6) 1, China EM Equity Total (143.3) , Equity Total (143.3) , Fixed Income 10.3 (67.8) (26.5) Latin America Listed ETP total (132.9) , [ 34 ]

35 Latin America ETPs Ranked by YTD Inflows and Outflows ETPs as of November (US$mn) 1 Bloomberg Ticker Inflows Nov-13 ishares NAFTRAC NAFTRAC MM 1, ,276.2 ishares COLCAP ICOLCAP CB ,525.8 It Now IPSA CFMITNIP CI ishares IBrX-Índice Brasil BRAX11 BZ ishares LATixx Mexico M5TRAC M5TRAC MM ishares LATixx Mexico M10TRAC M10TRAC MM ishares IPC MidCap Total Return TRAC IMCTRAC MM Fondo Bursátil Horizons S&P MILA 40 HMILA40 CB ishares Utilidade Publica BM&FBOVESPA UTIP11 BZ ishares IPC CompMx Total Return TRAC ICMTRAC MM Grand Total 1, ,361.1 ETPs as of November (US$mn) 1 Bloomberg Ticker Outflows Nov-13 [ 35 ]

36 Endnotes The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1. Data is as of November 28, 2013 for Europe and November 29, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of October 31, Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg. 2. We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70 its assets in the corresponding maturity/exposure range: Short maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate includes: 3 years < underlying security maturities < 10 years. The other category includes Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly. 3. Source: BlackRock, Bloomberg, Reuters 4. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-October 2013 data is sourced from EPFR monthly data. November 2013 data is sourced from EPFR weekly data for the four weeks ended Nov 27, Money Market mutual fund flows is sourced from EPFR weekly data for the four weeks ended Nov 27, Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. ABOUT BLACKROCK BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2013, BlackRock s AUM was $4.096 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, ishares (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions. Headquartered in New York City, as of September 30, 2013, the firm had approximately 11,200 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at [ 36 ]

37 Disclaimer REGULATORY INFORMATION BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0) This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance. Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, BlackRock ). This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan. [ 37 ]