TRENDS IN THE EUROPEAN ETF INDUSTRY

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1 TRENDS IN THE EUROPEAN ETF INDUSTRY (ALL DATA AS OF MARCH, ) Detlef Glow Head of Lipper EMEA Research

2 Table of Content A brief history of ETFs in Europe 3 Assets under management 7 Fund flows ETFs in Europe 15 Structure of the European ETF market 18 New ETFs 21 The ETF death list 31 Summary 35 Disclaimer 37

3 EXCHANGE TRADED FUNDS IN EUROPE

4 A Brief History of ETFs in Europe 2000 Launch of ETFs in Europe (Merrill Lynch) 2001 SWAP based ETFs (Lyxor) Sector ETFs on MSCI Europe (State Street) 2003 Bond ETFs (Indexchange ishares) 2004 ETFs on Emerging Markets

5 A Brief History of ETFs in Europe 2005 Strategy ETFs (Lyxor) 2005 Commodity ETFs (EasyETF) 2006 Gold ETFs (backed with Gold) (ZKB) 2007 Money Market EONIA (db x-trackers) 2007 Short and leveraged ETFs

6 A Brief History of ETFs in Europe 2007 Strategy ETFs on credit spreads billion EUR in assets under management 2009 ETFs on hedge fund strategies billion EUR in assets under management

7 ASSETS UNDER MANAGEMENT

8 ETFs - Assets Under Management (10/ /2012) ETFs in Europe - Assets under Management (in Billion Euro) 260 Equity Bond Real Estate Other Commodities Money Market

9 ETFs - Assets Under Management (03/ /2012) Equity Bond Real Estate Other Commodities Money Market

10 Assets Under Management Assets under management grew by 3.75% up to billion Euro in 2011 Assets under management grew by 8.71% up to billion Euro in Q1-2012

11 Promoter Market Share by AUM ( ) Other Promoters 20.58% State Street 4.39% ishares 40.59% CS ETF 5.07% UBS 3.62% Lyxor 11.78% db x-trackers 13.96%

12 Promoter Market Share by AUM ishares Lyxor db x-trackers CS ETF UBS Other Promoters 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

13 Summary Assets Under Management The European ETF market is highly concentrated The top five ETF promoters account for 75.79% of AuM 46 of the 1711 ETFs hold assets above 1 billion EUR 23 equity funds 11 bond funds 9 commodity funds (8 gold, 1 silver) 2 money market funds 1 real estate linked equity fund

14 Summary Assets Under Management The largest ETF (ishares DAX) holds 5.05% of overall AuM Top ten ETFs account for 25.94% of overall AuM Top twenty ETFs account for 36.26% of overall AuM Top 46 ETFs account for 49.11% of overall AuM

15 FUND FLOWS

16 ETF Fund Flows (in Million Euro) 14, , , , , , , , , ,000.0 Equity Bond Commodity Other Money Market

17 ETF Fund Flows Q1/2012 (in Million Euro) 3, , , , , , , , , ,500.0 Equity Bond Commodity Other Money Market

18 MARKET STRUCTURE BY NUMBER OF FUNDS

19 ETFs in Europe by Fund Domiciles ( ) Total Bond Equity Commodities Real Estate Money Market Other Germany France Ireland Luxembourg Other # Primaries Non-Primaries

20 Market Share per Asset Type by Number of Funds by Assets under Management Equity 62% Other 11% Money Market 2% Commodities 9% Real Estate 2% Equity 64% Bond 20% Real Estate 1% Other 3% Money Market 2% Commodities 10% Bond 15%

21 NEW FUNDS LAUNCHED 2011

22 New ETFs Launched

23 New ETFs Launched 2011 Total Bond Equity Commodities Real Estate Money Market O ther Germany France Ireland Luxembourg O ther #

24 New ETFs Launched 2011 Assets Under Management 10 Equity Bond Real Estate Other Money Market Commodities

25 New ETFs Launched Market Share by AUM ( ) Bond 17% Real Estate 1% Other 5% Money Market 1% Commodities 5% Equity 71%

26 NEW FUNDS LAUNCHED Q1/2012

27 New ETFs Launched Q1/ Equity Bond Other 7 Money Market 1 Commodities 4 Real Estate

28 New ETFs Launched 2012 Assets Under Management 1 Equity Bond Real Estate Other Commodities Money Market

29 New ETFs Launched 2012 Market Share by AUM Real Estate 0% Other 10% Money Market 1% Commodities 4% Equity 22% Bond 63%

30 New ETFs Launched Activity by Promoter Julius Baer 5 Lyxor 19 Amundi 1 SPDR 5 Ossiam 2 UBS 11 Easy ETF 1 db x-trackers 16

31 THE ETF DEATH LIST

32 Is the ETF Industry Going to Consolidate? 542 ETFs in Europe are older than 3 years 241 of these ETFs are smaller than 100 million Euro These 241 ETFs might be under review for profitability reasons by the fund promoters

33 Is the ETF Industry Going to Consolidate? but, ETFs do not only generate income from management fees. Other income like creation and redemptions fees need also to be taken into account to evaluate the profitability of an ETF. In addition some of these ETFs have been launched for marketing reasons or to complete product ranges.

34 Is the ETF Industry Going to Consolidate? Summary AuM is no valid measure to evaluate the profiability of an ETF. Other reasons (complete product offering) might drive the decission making of fund promoters. No trend to consolidation in the ETF industry foreseeable at the moment

35 SUMMARY

36 Summary The European ETF market is highly concentrated AuM in the ETF sector will continue to grow growth rate will be lower impact from market movements will increase Number of funds will also grow further not all markets have already covered by ETFs strategy ETFs may become more important ETF industry does not show a trend towards consolidation

37 DISCLAIMER Thomson Reuters 2011 All Rights Reserved. This presentation is for informational purposes only, and do not constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. No guarantee is made that the information in this presentation is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. 37