Anthony Serhan, CFA Managing Director, Research Strategy
Morningstar Fund Flows
Morningstar Fund Flows Analysis: Worldwide Funds 2014 a strong year for fund flows USD Billions 1,500 1,000 Unclassified Tax Preferred Property 500 Money Market Miscellaneous 0 (500) 2010 2011 2012 2013 2014 Fixed Income Equity Convertibles Commodities Alternative Allocation (1,000)
Morningstar Fund Flows Analysis: Worldwide Funds Net Flows and Assets by Global Broad Category Group, in Billions USD Global Broad Category Group Estimated Net Flow 2014 Estimated Net Flow 2013 Total Net Assets 2014 12 Total Net Assets 2013 12 Organic Growth Rate 2014 12 (%) Allocation 268 238 3,207 2,764 9.7 Alternative 82 102 588 528 15.6 Commodities 5 49 148 174 2.9 Convertibles 8 18 103 98 8.2 Equity 439 586 13,367 12,313 3.6 Fixed Income 371 127 6,153 5,780 6.4 Miscellaneous 52 3 877 836 6.2 Money Market 84 9 4,176 4,174 2.0 Property 14 7 160 154 9.1 Tax Preferred 32 57 582 512 6.3 Unclassified 6 1 48 44 13.5
Morningstar Fund Flows Analysis: Worldwide Funds Cumulative Flows for Index and Non-Index Funds, 2013-2014 Equity index funds gather largest cumulative flows in the past two years Allocation Index Allocation Non-Index Equity Index Equity Non-Index Fixed Income Index Fixed Income Non-Index USD Billions 800 700 600 500 400 300 200 100 1/1/2013 4/1/2013 7/1/2013 10/1/2013 1/1/2014 4/1/2014 7/1/2014 10/1/2014 0
Morningstar Global Fund Flows Analysis Net Flows for Index and Non-Index Funds by Region of Domicile, 2014 Index Non-Index USD Billions 450 400 350 300 250 200 150 100 50 0-50
Morningstar Global Fund Investor Experience Study 2015
Morningstar Global Fund Investor Experience Study 2015 Australia New Zealand Canada Belgium Norway China Singapore United States Denmark South Africa Hong Kong Taiwan France Spain India Thailand Germany Sweden Japan Italy Switzerland Korea Netherlands United Kingdom
Four areas of focus Regulation and Taxation Disclosure Fees and Expenses Sales and Media
Thailand preliminary observations Thailand has taken great steps to improve disclosure over the past two years. Further improvements for 2015 include quarterly portfolio holdings, manager tenure and start date. The simplified prospectus was recently reduced from 20 pages to a range of 2-4, making it much easier for investors to understand. Expense Ratios for funds domiciled in Thailand are generally average to high for equity, allocation, and money market funds. However, they are very low for fixed income funds Thailand is the only country in the survey with a higher after-tax return than pre-tax return LTF benefit
Category Winners 7 Categories
Manager Research Services Global Scope/Local Expertise 115 Analysts 4,000 Funds $10 Trillion In Invested Assets
Morningstar Thailand Category Performance 50% 40% 30% 20% 10% Equity Large-Cap Equity Small/Mid-Cap Mid/Long Term Bond Short Term Bond 0% 2014 2013 2012 2011 2010-10%
Morningstar Awards Methodology - Category 1 Year 30% 80% Return 3 Year 20% Performance 5 Year 30% 20% Morningstar Risk 3 Year 8% 5 Year 12%
A total of 7 Awards Equity Fixed Income LTF&RMF Thailand Equity Large Cap Thailand Equity Small/Mid Cap Thailand Mid/Long Term Bond Thailand Short Term Bond Long Term Equity Fund RMF Equity RMF - Fixed Income March 2015, Thailand
Morningstar Fund House Awards Methodology Focused on longer-term strength on a risk-adjusted basis Five-Year Morningstar Risk-Adjusted Return (MRAR) MRAR is the excess return over the risk-free rate, adjusted for sales charges and adjusted for risk Risk adjustment penalizes funds more for downside risk, in keeping with investor preferences Award calculation averages the five-year MRAR percentile rank in Morningstar category for all relevant funds within a house, and the house with the best riskadjusted results over the period wins.
2 Fund House Awards Morningstar Fund House Awards Best Fund House: Domestic Equity - Fund houses with at least five equity funds that have Five-Year Morningstar Risk-Adjusted Return (MRAR) are eligible. Best Fund House: Domestic Fixed Income - Fund houses with at least three fixed income funds that have Five-Year Morningstar Risk-Adjusted Return (MRAR) are eligible.
Thailand Equity Small/Mid-Cap
Category Winner Thailand Equity Small/Mid-Cap Aberdeen Small Cap Fund Logo 2 Logo 3
Thailand Equity Large Cap
Category Winner Thailand Equity Large Cap 1 A.M. SET 50 Fund Logo 2 Logo 3
Thailand Short Term Bond
Category Winner Thailand Short Term Bond ONE Fixed Income Automatic Redemption Fund Logo 2 Logo 3
Thailand Mid/Long Term Bond
Category Winner Thailand Mid/Long Term Bond K Fixed Income Fund Logo 2 Logo 3
Long Term Equity Fund
Category Winner Long Term Equity Fund Aberdeen Long Term Equity Fund Logo 2 Logo 3
Retirement Mutual Fund Equity
Category Winner Retirement Mutual Fund Equity Aberdeen Smart Capital Retirement Mutual Fund Logo 2 Logo 3
Retirement Mutual Fund Fixed Income
Category Winner Retirement Mutual Fund Fixed Income Thanachart General Fixed Income Retirement Mutual Fund Logo 2 Logo 3
Best Fund House: Domestic Fixed Income
Fund House Winner Domestic Fixed Income Thanachart Fund Management Co., Ltd. Logo 2 Logo 3
Best Fund House: Domestic Equity
Fund House Winner Domestic Equity BBL Asset Management Co., Ltd. Logo 2 Logo 3