ETP LANDSCAPE INDUSTRY HIGHLIGHTS FEBRUARY 28, 2014 The opinions expressed are as of February 28th, 2014 and may change as subsequent conditions vary. ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS
What s Inside BlackRock ETP Research Global ETP Overview 3 Dodd Kittsley, Head of BlackRock ETP Research Raj Seshadri Head of BlackRock ETP Insights For inquiries, contact ETPresearch@BlackRock.com United States 16 Europe 21 Asia Pacific 26 Canada 31 Latin America 36 Endnotes 38 FIXED INCOME ETP FLOWS SURGED IN EARLY FEBRUARY WHILE EQUITIES RECOVERED AFTER A ROCKY START 1 Global ETP inflows finished February at $27.2bn spurred on by Janet Yellen s February 11 th address to Congress, which was well received by equity markets. Fixed Income flows of $19.6bn set a new monthly record amid expectations for continued low interest rates and low inflation. US Treasuries brought in $11.4bn and Investment Grade Corporate gathered $3.6bn. High Yield Corporate added $1.4bn. Despite inflows into all duration buckets, Short Maturity funds had a record month taking in $7.4bn. Overall Equity flows were moderate at $5.8bn with investors continuing to favor non-us Developed Markets exposures. Japanese Equity inflows reached $4.1bn and Pan-European funds gathered $2.8bn as evidence continues to point toward improving growth in the region. US Equity outflows totaled ($0.2bn) and Emerging Markets shed ($4.5bn). February played out as a tale of two halves and ETPs enabled market participants to efficiently reallocate capital as sentiment shifted. Prior to Yellen s remarks, Equity ETP redemptions reached ($21.2bn) while Fixed Income accumulated $16.8bn as investors waited out the equity market volatility that carried over from January. Subsequently, the trend reversed with Equities recovering $27.1bn (largely US Equity) while Fixed Income cooled but still brought in an additional $2.8bn. About the ETP Landscape: Industry Highlights Report The ETP Landscape: Industry Highlights provides a summary of ETP assets under management and asset flows at a global level for the most recent month-end period. Subscribe If you are a Professional Investor (or, in Canada, an Accredited Investor) and would like to receive future ETP Landscape reports, please subscribe via our website at: www.blackrockinternational.com/etflsubscribe [ 2 ]
Global Overview Highlights (US$): 1,2 GLOBAL ETP WEEKLY FLOWS 1 2014 February $27.2bn February inflows of $27.2bn for the Global ETP Industry represented a dramatic turnaround from January s outflows, underscoring the uncertainty confronting markets so far in 2014. Going forward this year, volatility is likely to move higher, reverting to its long-term historical average. The lack of a clear signal on global economic growth following a year in which the anticipation of improvement propelled stocks to impressive gains has led to active movement of capital among asset classes that was reflected in ETP flows during the month. There were, however, categories that continued to consistently gather assets. Net (US$bn) 6.0 (3.4) (12.0) (4.5) 19.2 6.6 6.0 Developed Int l Equity Fixed Income US Equity EM Equity Commodities/Other Redemptions in US Equity exposures that had emerged during late January continued into the first week of February but then reversed to inflows despite further lackluster reports on the labor market and manufacturing. The catalysts were Janet Yellen s testimony before Congress and news of an agreement on debt ceiling legislation. The former was an encouraging sign of a smooth Fed transition and confirmation of low-for-longer interest rate policy in conjunction with tapering while the latter pushed an obstacle to 2014 growth off until next year. US Large Cap outflows abated, finishing the month down ($2.9bn) as opposed to the ($15.7bn) witnessed in January. One consistent trend was strength in US Sectors which built on existing momentum adding $4.1bn in February driven by Health Care, Energy and Real Estate. Global Fixed Income flows of $19.6bn set a new record in February and were led by US exposures with $16.8bn, also a new high. spiked as US Equity redemptions mounted early in the month, but then slowed abruptly. It remains unclear whether the pickup this month was a sign of changing investor behavior or more opportunistic in nature given shortterm market conditions as well as range-bound interest rates and low inflation expectations. Still, in two months it brings year-to-date Fixed Income flows to $23.1bn, close to the total for all of 2013 at $27.1bn. US Treasuries and Investment Grade bonds led the way accumulating $11.4bn and $3.6bn this month, respectively. High Yield added $1.4bn. European Fixed Income exposures continued their strong run gathering $1.3bn, just off the pace from January. Short Maturity Fixed Income flows also reached their highest monthly total on record at $7.4bn after subsiding late in 2013. While the outlook for Emerging Markets Equity remains tenuous in light of tension in the Ukraine and Chinese currency volatility, it has stabilized notably since January and so have ETP flows. February brought additional outflows of ($4.5bn) but they were concentrated early in the month. 1/17 1/24 GLOBAL EQUITY ETP FLOWS 1 ($1.9bn) vs. 2013 YTD : $46.8bn 20 10 0-10 20.9 (11.6) 3.6 8.2 2.5 7.3 US Japan Pan European 10.5 GLOBAL FIXED INCOME ETP FLOWS 1 2014 February : $19.6bn Monthly Net ($US$bn) 20 10 0-10 1/31 Short Maturity Other Duration Buckets 2/7 2/14 2/21 2/28 7.4 Other DM/ Global Jan-Feb 2013 Jan-Feb 2014 9.3 (13.2) Emerging Markets F A J A O D F A J A O D F 2012 2013 2014 [ 3 ]
Global Overview (cont d) Highlights (US$): 1,2 Year-to-date outflows of ($13.2bn) have now surpassed the total of ($10.3bn) for all of 2013. Valuations remain relatively attractive by historical standards for longer-term investors willing to ride out the volatility inherent in the asset class and encouraging forecasts for individual economies such as South Korea also continue to present opportunities for selective investors. into Pan-European Equity exposures remained strong reaching $2.8bn in February. Data released mid-month indicated Q4 Eurozone GDP growth of 0.3% above expectations for 0.2% and February inflation of 0.8% annualized that remains low but has stabilized recently. 3 Single country funds have also seen momentum in flows continue to build this year. They gathered $1.3bn in February led by Italy and Switzerland with $0.4bn each. In aggregate, flows into European Equity exposures totaled $4.2bn during the month. FEBRUARY RESULTS AT A GLANCE 1 (US $billions) February 2014 January 2014* December 2013* February 2013 Monthly 27.2 (6.6) 24.6 9.8 2,434 2,322 2,396 2,036 # of ETPs 5098 5,063 5,024 4,792 *Q4 2013 and Jan 2014 restated with additional Europe and Asia data. Global ETPs crossed 5,000 in product count during Dec 2013. GLOBAL 13-MONTH ROLLING FLOWS 1 : $20.6bn vs. 2013 : $236.1bn (US$bn) The pace of Japanese Equity flows remained strong with $4.1bn added in February predominantly among a select set of Nikkei and TOPIX funds. Year-to-date the total has already reached $8.2bn. Inflows had tapered late in 2013 following impressive asset gathering of $26.0bn during the first half. Despite evidence that economic growth remains moderate the latest Q4 data revealed GDP growth of 0.3% 4 the government reasserted its commitment to boost record stimulus measures if needed. Equity Fixed Income Commodities & Others CUMULATIVE EQUITY ETP FLOWS 1 CUMULATIVE FIXED INCOME ETP FLOWS 1 Equity : ($1.9bn) Fixed Income : $23.1bn Cumulative Net (US$bn) Cumulative Net (US$bn) [ 4 ]
2014 Year-To-Date Overview GLOBAL ETP FLOWS BY EXPOSURE 1 (US$bn) YTD 2013 Annual 2013 GLOBAL ETP CUMULATIVE NET FLOWS 1 $20.6bn vs. 2013 : $236.1bn 300 262.7 200 236.1 173.5 100 0 20.6 J F M A M J J A S O N D CUMULATIVE COMMODITIES & OTHERS ETP FLOWS 1 Commodities & Others : ($0.5bn) MONTHLY GLOBAL EQUITY ETP FLOWS 1 Strategic Beta Equity ETP : $5.8bn Cumulative Net (US$bn) Net (US$bn) (R) Strategic Beta Equity Market Cap Weighted [ 5 ]
By Listing Region Highlights (US$): 1 Europe-listed ETPs gathered $4.3bn in February, the eighth consecutive month with positive flows Funds listed in the US account for 70.9% of global ETP assets Year-to-date Asia Pacific and Europe contributed to 85% of all global ETP inflows, with more than $8bn each. FEBRUARY FLOWS BY LISTING REGION 1 ASSET GROWTH RATES AND # OF ETPs 1 (# ETPs) 40 Bubble size = 35 30 ($bn) 2014 Growth in # ETPs 25 20 15 10 5 0 Latin America $9 Canada $59 Asia Pacific $169 US $1,727 Europe $429-5 -24% -20% -16% -12% -8% -4% 0% 4% 8% -10 2014 AUM Growth Commodities & Others Fixed Income Equity LISTING REGION VIEW 1 By Listing Region Feb 2014 Net YTD 2014 Feb 2014 % Asset Market Share Number of Products FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [ 6 ]
ETP and Mutual Fund Equity Highlights (US$): 1,5 ETP and mutual funds Equity flows exhibited similar patterns so far this year. Developed Markets Equity mutual fund inflows were $50.6bn year-to-date, after finishing 2013 with $165.7bn. Developed Markets Equity ETPs had inflows of $11.3bn vs. $258.4bn for full-year 2013. Emerging Markets Equity mutual fund outflows were ($15.5bn) year-to-date, already more than double the ($6.6bn) total for last year. EM Equity ETP outflows reached ($13.2bn) year-to-date, also surpassing the ($10.3bn) from last year. GLOBAL EQUITY ETP FLOWS 1,5 ($1.9bn) vs. 2013 $248.1bn 300 250 258.4 GLOBAL EQUITY MUTUAL FUND FLOWS 1,5 $35.0bn vs. 2013 $159.1bn 300 250 200 200 165.7 150 150 100 50 0 (50) 11.3 (13.2) (10.3) J F M A M J J A S O N D 100 50 0 (50) 50.6 (15.5) (6.6) J F M A M J J A S O N D Developed Markets in 2014 Emerging Markets in 2014 Developed Markets in 2013 Emerging Markets in 2013 [ 7 ]
ETP and Mutual Fund - Fixed Income and Money Market Highlights (US$): 1,5 The preference for Short Maturity Fixed Income that was a key theme in 2013 is still evident for Mutual Funds but is less pronounced for ETPs. Fixed Income ETPs gathered $23.1bn year-to-date, led by US Treasury Bond and Investment Grade Corporate Bond funds. of $9.3bn came from Short Maturity funds and other duration buckets added $13.8bn. Short Maturity Fixed Income mutual funds gathered $11.0bn so far this year, while other maturities had redemptions of ($11.2bn). Money Market mutual funds surrendered ($20.1bn) yearto-date, similar thus far to the pattern seen last year. Money Market ETP trends are not shown below as assets are minimal. are included with those of Fixed Income funds. GLOBAL FIXED INCOME ETP FLOWS 1,2,5 $23.1bn vs. 2013 $27.1bn GLOBAL FIXED INCOME MUTUAL FUND FLOWS 1,2,5 ($0.2bn) vs. 2013 ($103.3bn) Cumulative Net (US$bn) 40 30 20 10 0-10 -20 35.8 13.8 9.3 (8.7) J F M A M J J A S O N D Cumulative Net (US$bn) 150 100 50 0-50 -100-150 -200-250 -300 129.3 11.0 (11.2) (232.7) J F M A M J J A S O N D Short Maturity in 2014 Other Maturity Buckets in 2014 Short Maturity in 2013 Other Maturity Buckets in 2013 MONEY MARKET MUTUAL FUND FLOWS 1,5 ($20.1bn) vs. 2013 ($32.3bn) 0 (50) (20.1) (32.3) (100) Money Market Mutual Fund in 2014 Money Market Mutual Fund in 2013 (150) (200) J F M A M J J A S O N D [ 8 ]
Largest Year-To-Date Fund Inflows and Outflows ETPs as of February 2014 (US$mn) 1 Bloomberg Ticker Inflows Feb-14 ishares Barclays 3-7 Year Treasury Bond IEI US 3,580 6,313 ishares Barclays 1-3 Year Treasury Bond SHY US 3,525 11,752 ProShares Ultra 7-10 Year Treasury UST US 2,919 2,951 NIKKEI 225 ETF 1321 JP 1,716 18,272 Vanguard European VGK US 1,655 15,750 ishares MSCI EMU EZU US 1,582 10,170 NEXT FUNDS Nikkei 225 Leveraged 1570 JP 1,580 2,684 ishares Barclays 1-3 Year Credit Bond CSJ US 1,370 13,225 Vanguard Total Stock Market VTI US 1,321 41,089 Vanguard REIT VNQ US 1,293 20,420 Grand Total 20,540 142,627 ETPs as of February 2014 (US$mn) 1 Bloomberg Ticker Outflows Feb-14 SPDR S&P 500 SPY US (17,383) 158,175 ishares MSCI Emerging Markets EEM US (7,572) 30,907 ishares Core S&P 500 IVV US (4,063) 49,911 Vanguard FTSE Emerging Markets VWO US (3,482) 41,139 ishares Core S&P Mid-Cap IJH US (2,463) 20,653 Consumer Discretionary Select SPDR XLY US (2,030) 5,410 ProShares Ultra S&P 500 SSO US (1,806) 1,619 ishares iboxx $ High Yield Corporate Bond HYG US (1,803) 13,581 ProShares Ultra MidCap 400 MVV US (1,471) 164 ishares Russell 2000 IWM US (1,427) 27,212 Grand Total (43,500) 348,771 [ 9 ]
Largest Asset Gathering ETPs Launched in 2014 Highlights (US$): 1 93 new ETPs and 16 individual share class listings debuted around the globe so far this year and have accumulated $2.1bn in assets. 16 products and 27 individual share class listings were delisted this year with combined assets of less than $900mn. Product Name (US$mn) 1 Bloomberg Ticker Exposure Listing Region Launch Date as of Feb-2014 Others 566 [ 10 ]
Global ETP Multi-Year Asset Growth and Top 10 Providers Global ETP & Number of ETPs by Year 1 ($bn) # of ETPs $2,400 4,759 5,024 5,098 5,000 $2,200 4,311 $2,000 3,543 $1,800 4,000 $1,600 2,694 $1,400 3,000 $1,200 1,541 2,220 2,396 2,434 $1,000 1,944 2,000 883 $800 1,483 1,525 $600 524 1,156 851 772 297 300 357 1,000 $400 106 219 $200 598 $0 79 109 146 218 319 428 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Feb-14 Global ETP Providers Ranked by (US$bn) 1 Provider * Feb-2014 % Market Share Feb-2014 Net Net # ETPs Change % Market Share * Providers measured at parent company level. [ 11 ]
ETP by Exposure: Developed Equity Exposure (US$mn) 1 Feb 2014 Large Cap (2,877) (18,598) (90.2) 471,427 19.4 238 Mid Cap (3,292) (2,663) (12.9) 84,321 3.5 49 Small Cap 949 (1,272) (6.2) 89,264 3.7 70 US Size and Style Micro Cap 97 121 0.6 1,253 0.1 4 Total Market 559 2,850 13.8 69,412 2.9 72 Extended Market 113 263 1.3 4,393 0.2 2 Preferred Stock 21 (99) (0.5) 12,471 0.5 5 US Size and Style Total (4,430) (19,398) (94.1) 732,541 30.1 440 Basic Materials 520 1,018 4.9 8,628 0.4 15 Consumer Cyclicals (1,102) (2,149) (10.4) 14,302 0.6 19 Consumer Non-cyclicals (868) (982) (4.8) 9,138 0.4 13 Energy 1,578 1,893 9.2 34,895 1.4 45 Financials 803 315 1.5 32,664 1.3 40 Health Care 2,698 3,888 18.9 31,982 1.3 30 US Sector Industrials (785) (700) (3.4) 14,891 0.6 18 Real Estate 1,234 2,088 10.1 32,487 1.3 24 Technology (367) 663 3.2 26,964 1.1 28 Telecommunications 7 115 0.6 1,133 0.0 6 Utilities 216 680 3.3 7,867 0.3 13 Theme 139 145 0.7 1,302 0.1 8 US Sector Total 4,074 6,975 33.8 216,253 8.9 259 US Strategy 147 797 3.9 72,199 3.0 65 US Total (208) (11,626) (56.4) 1,020,992 41.9 764 Canada Equity (398) (1,125) (5.5) 31,482 1.3 93 North America Regional Equity 206 484 2.3 8,789 0.4 22 North America Total (399) (12,268) (59.5) 1,061,263 43.6 879 Pan European Size and Style Large Cap 515 886 4.3 46,892 1.9 83 Mid Cap 26 (19) (0.1) 1,265 0.1 9 Small Cap 203 757 3.7 4,346 0.2 12 Total Market 1,595 4,703 22.8 54,013 2.2 75 Pan European Size and Style Total 2,338 6,324 30.7 106,438 4.4 177 Pan European Sector 396 848 4.1 15,134 0.6 152 Pan European Strategy 93 121 0.6 3,454 0.1 21 Pan European Total 2,827 7,296 35.4 125,104 5.1 352 Germany 169 (164) (0.8) 41,118 1.7 66 Country % of % of # ETPs U.K. 194 841 4.1 22,810 0.9 58 Switzerland 363 454 2.2 11,413 0.5 32 France 79 (21) (0.1) 6,067 0.2 18 Others 522 1,162 5.6 13,442 0.6 68 Europe Single Country 1,326 2,273 11.0 94,850 3.9 242 Total Europe Total 4,154 9,569 46.4 219,954 9.0 594 Regional (604) (889) (4.3) 15,369 0.6 61 Asia-Pacific Country 4,059 8,207 39.8 144,595 5.9 255 Asia Pacific Total 3,455 7,318 35.5 159,964 6.6 316 Broad-Based Global /Global ex-us 3,159 6,662 32.3 212,536 8.7 463 Developed Equity Total 10,368 11,280 54.7 1,653,717 67.9 2,252 [ 12 ]
ETP by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn) 1 Feb 2014 % of % of # ETPs Broad Emerging Markets (3,309) (12,306) (59.7) 104,013 4.3 111 Broad EM Broad Frontier Markets 40 84 0.4 835 0.0 5 Broad EM Total (3,270) (12,222) (59.3) 104,848 4.3 116 Regional EM (161) (510) (2.5) 6,082 0.2 76 Brazil (65) 37 0.2 6,881 0.3 45 China (528) 1,904 9.2 54,720 2.2 206 India (97) (256) (1.2) 5,224 0.2 52 EM Single Country Russia (202) (425) (2.1) 2,411 0.1 17 South Korea (101) (756) (3.7) 19,296 0.8 113 Mexico (207) (924) (4.5) 8,916 0.4 20 Others 86 (60) (0.3) 21,546 0.9 150 EM Single Country Total (1,115) (480) (2.3) 118,993 4.9 603 Emerging Markets Equity Total (4,545) (13,212) (64.1) 229,923 9.4 795 Equity Total 5,823 (1,932) (9.4) 1,883,640 77.4 3,047 Broad/Aggregate 347 1,488 7.2 45,566 1.9 37 Govt/Corp 809 594 2.9 33,193 1.4 29 Emerging Markets 771 712 3.5 19,686 0.8 79 Municipal 39 145 0.7 11,980 0.5 37 Government - Sovereign 577 1,570 7.6 42,655 1.8 263 Government - US Treasury 11,394 12,015 58.3 46,027 1.9 78 Government Total 11,971 13,585 65.9 88,682 3.6 341 Fixed Income Inflation (17) (172) (0.8) 25,134 1.0 39 High Yield Corporate 1,402 1,125 5.5 45,891 1.9 51 Investment Grade Corporate 3,586 4,686 22.7 83,720 3.4 139 Money Market (147) (308) (1.5) 4,410 0.2 19 Mortgage 334 272 1.3 7,527 0.3 7 Others 501 948 4.6 14,183 0.6 33 Fixed Income Total 19,598 23,075 112.0 379,971 15.6 811 Broad Market 149 (551) (2.7) 17,206 0.7 113 Agriculture 49 (5) (0.0) 5,250 0.2 192 Energy 298 89 0.4 7,383 0.3 207 Commodities Industrial Metals (29) 110 0.5 1,920 0.1 117 Precious Metals - Gold 501 (372) (1.8) 73,995 3.0 124 Precious Metals - Silver 200 258 1.3 12,493 0.5 67 Precious Metals - Others (8) (126) (0.6) 4,692 0.2 80 Precious Metals - Total 693 (240) (1.2) 91,180 3.7 271 Commodities Total 1,159 (596) (2.9) 122,940 5.1 900 Alternatives Volatility 220 197 1.0 3,136 0.1 49 Others 2 43 0.2 2,772 0.1 68 Alternatives Total 222 240 1.2 5,908 0.2 117 Asset Allocation 507 574 2.8 5,164 0.2 79 Currency (100) (750) (3.6) 4,247 0.2 144 Israel ETP - - - 32,458 1.3 - Global ETP Total 27,208 20,610 100.0 2,434,327 100.0 5,098 [ 13 ]
United States ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS
US ETP Multi-Year Asset Growth and Top 10 Providers US ETP & Number of ETPs by Year 1 ($bn) # of ETPs $1,800 1445 1536 1568 1600 $1,600 1370 1400 $1,400 1099 1200 $1,200 925 844 $1,000 1000 673 1,701 1,727 800 $800 381 1,350 600 $600 1,012 1,062 221 400 $400 794 130 134 169 95 118 621 542 $200 433 200 $0 71 88 106 157 237 314 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Feb-14 US ETP Providers Ranked by (US$bn) 1 Provider * Feb-2014 % Market Share Feb-2014 Net Net # ETPs Change % Market Share ishares 672.3 38.9 9.9 3.3 306 10.6 0.0 State Street 378.9 21.9 (2.2) (18.8) 129 (12.7) (1.1) Vanguard 345.2 20.0 3.6 7.8 67 11.4 0.4 Invesco PowerShares 101.5 5.9 2.5 1.7 162 3.9 0.1 WisdomTree Investments 33.9 2.0 0.0 0.0 62 (0.9) (0.1) ProShares 27.0 1.6 0.1 0.7 143 (0.2) 0.0 Guggenheim 24.1 1.4 1.3 2.0 69 2.5 0.1 Van Eck Global 23.7 1.4 0.3 (0.3) 62 1.5 0.1 First Trust Portfolios 23.1 1.3 1.0 2.5 82 3.3 0.2 Charles Schwab 18.4 1.1 0.6 1.3 21 1.6 0.1 44 other US providers 78.9 4.6 2.3 3.9 465 5.2 0.2 Grand Total 1,727.0 100.0 19.4 4.1 1,568 26.1 0.0 * Providers measured at parent company level. [ 15 ]
US ETPs Ranked by 2014 YTD Inflows and Outflows ETPs as of February (US$mn) 1 Bloomberg Ticker Inflows Feb-14 ishares Barclays 3-7 Year Treasury Bond IEI US 3,580 6,313 ishares Barclays 1-3 Year Treasury Bond SHY US 3,525 11,752 ProShares Ultra 7-10 Year Treasury UST US 2,919 2,951 Vanguard European VGK US 1,655 15,750 ishares MSCI EMU EZU US 1,582 10,170 ishares Barclays 1-3 Year Credit Bond CSJ US 1,370 13,225 Vanguard Total Stock Market VTI US 1,321 41,089 Vanguard REIT VNQ US 1,293 20,420 Vanguard FTSE Developed Markets ETF VEA US 1,292 20,507 ishares MSCI EAFE EFA US 1,101 54,578 Grand Total 19,639 196,756 ETPs as of February (US$mn) 1 Bloomberg Ticker Outflows Feb-14 SPDR S&P 500 SPY US (17,383) 158,175 ishares MSCI Emerging Markets EEM US (7,572) 30,907 ishares Core S&P 500 IVV US (4,063) 49,911 Vanguard FTSE Emerging Markets VWO US (3,482) 41,139 ishares Core S&P Mid-Cap IJH US (2,463) 20,653 Consumer Discretionary Select SPDR XLY US (2,030) 5,410 ProShares Ultra S&P 500 SSO US (1,806) 1,619 ishares iboxx $ High Yield Corporate Bond HYG US (1,803) 13,581 ProShares Ultra MidCap 400 MVV US (1,471) 164 ishares Russell 2000 IWM US (1,427) 27,212 Grand Total (43,500) 348,771 [ 16 ]
US ETP by Exposure: Equity Exposure (US$mn) 1 Feb 2014 Net 2014 YTD Net % of % of # ETPs Broad-based (4,642.4) (22,082.6) (534.0) 332,665.9 19.3 69 Growth 732.4 931.9 22.5 53,999.4 3.1 19 Value 179.4 443.1 10.7 44,716.5 2.6 20 Large Cap High Dividend Yield 33.3 62.8 1.5 2,384.5 0.1 3 Risk-adjusted (8.1) (8.1) (0.2) 34.0 0.0 3 Covered call - 4.0 0.1 4.0 0.0 2 US Size and Style US Large Cap Total (3,705.4) (20,648.9) (499.3) 433,804.3 25.1 116 Mid Cap (3,322.6) (2,767.0) (66.9) 83,845.3 4.9 45 Small Cap 992.2 (1,268.0) (30.7) 87,364.4 5.1 57 Micro Cap 96.6 120.6 2.9 1,253.1 0.1 4 Total Market 677.9 1,902.8 46.0 59,046.1 3.4 35 Extended Market 112.6 262.9 6.4 4,393.1 0.3 2 Preferred Stock 21.4 (99.2) (2.4) 12,471.2 0.7 5 US Size and Style Total (5,127.3) (22,496.8) (544.0) 682,177.5 39.5 264 Basic Materials 519.3 1,019.9 24.7 8,620.6 0.5 13 Consumer Cyclicals (1,095.6) (2,146.6) (51.9) 14,254.8 0.8 17 Consumer Non-cyclicals (867.6) (979.7) (23.7) 9,127.1 0.5 11 Energy 1,576.2 1,901.9 46.0 34,700.7 2.0 41 Financials 836.6 338.4 8.2 32,077.4 1.9 36 Health Care 2,676.6 3,849.7 93.1 31,791.5 1.8 24 US Sector Industrials (790.4) (687.7) (16.6) 14,791.9 0.9 16 Real Estate 1,209.8 2,080.8 50.3 31,786.1 1.8 19 Technology (373.6) 626.9 15.2 26,759.1 1.5 26 Telecommunications 7.5 114.8 2.8 1,132.7 0.1 6 Utilities 216.3 681.6 16.5 7,857.9 0.5 11 Theme 138.9 144.8 3.5 1,296.2 0.1 3 US Sector Total 4,054.1 6,944.6 167.9 214,196.1 12.4 223 US Strategy 56.9 646.0 15.6 69,478.7 4.0 48 US Equity Total (1,016.3) (14,906.2) (360.5) 965,852.3 55.9 535 Global 1,092.3 1,212.0 29.3 53,086.5 3.1 115 Global Ex-U.S. 1,875.9 4,996.8 120.8 127,508.1 7.4 92 Developed International Equity North America 125.6 93.8 2.3 8,415.3 0.5 16 Europe 2,307.0 6,655.8 161.0 55,864.3 3.2 47 Asia-Pacific (201.7) 45.4 1.1 41,320.8 2.4 44 Middle East & Africa 18.4 33.5 0.8 164.9 0.0 2 Developed International Total 5,217.5 13,037.2 315.3 286,360.0 16.6 316 Broad (2,905.6) (11,166.7) (270.0) 90,612.2 5.2 56 Emerging Markets Equity Regional (45.7) (172.7) (4.2) 2,618.1 0.2 22 Country (299.3) (657.6) (15.9) 31,634.4 1.8 94 EM Equity Total (3,250.6) (11,997.0) (290.1) 124,864.7 7.2 172 Equity Total 950.6 (13,866.0) (335.3) 1,377,077.0 79.7 1,023 [ 17 ]
US ETP by Exposure: Fixed Income, Commodities & Others Exposure (US$mn) 1 Feb 2014 Net 2014 YTD Net % of % of # ETPs Broad/Aggregate 330.5 1,354.4 32.8 40,907.2 2.4 16 Govt/Corp 670.1 413.7 10.0 29,253.1 1.7 19 Emerging Markets 68.0 (127.1) (3.1) 8,997.3 0.5 20 Investment Grade Corporate 2,982.5 3,396.3 82.1 56,676.9 3.3 44 High Yield Corporate 1,017.8 302.0 7.3 36,329.6 2.1 28 Fixed Income Municipals 47.1 163.3 3.9 11,798.6 0.7 34 Sovereign (33.3) (121.1) (2.9) 3,244.0 0.2 16 U.S. Government 11,146.6 11,747.2 284.1 42,276.5 2.4 52 Inflation (163.8) (359.3) (8.7) 20,245.0 1.2 17 Mortgage 390.3 309.1 7.5 6,118.5 0.4 4 Others 490.3 869.3 21.0 10,420.3 0.6 7 Fixed Income Total 16,945.9 17,947.7 434.0 266,267.0 15.4 257 Broad Market 17.9 (561.0) (13.6) 10,961.1 0.6 24 Agriculture 55.6 16.8 0.4 2,347.7 0.1 34 Energy 252.8 190.9 4.6 3,723.0 0.2 33 Industrial Metals 37.0 69.5 1.7 469.1 0.0 20 Commodities Precious Metals Gold 573.8 308.3 7.5 43,351.9 2.5 19 Silver 21.3 128.0 3.1 8,196.7 0.5 9 Other (25.8) (153.1) (3.7) 1,717.8 0.1 10 Precious Metals Total 569.3 283.1 6.8 53,266.4 3.1 38 Commodities Total 932.6 (0.7) (0.0) 70,767.3 4.1 149 Currency (125.7) (789.4) (19.1) 3,539.6 0.2 37 Volatility 220.6 226.1 5.5 2,803.1 0.2 16 Alternatives Others 32.1 69.1 1.7 1,980.1 0.1 45 Alternatives Total 252.7 295.1 7.1 4,783.2 0.3 61 Asset Allocation 491.9 548.4 13.3 4,577.1 0.3 41 US ETP Total 19,448.1 4,135.2 100.0 1,727,011.1 100.0 1,568 [ 18 ]
Europe ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS
Europe ETP Multi-Year Asset Growth and Top 10 Providers Europe ETP & Number of ETPs by Year 1 ($bn) # of ETPs $450 $400 $350 1593 1893 2105 2167 2180 2400 2000 $300 $250 $200 $150 $100 $50 $0 1108 414 429 503 854 367 299 305 315 243 6 71 118 167 115 150 104 133 35 56 92 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Feb-14 1600 1200 800 400 0 Europe ETP Providers Ranked by (US$bn) 1 Change Provider * Feb-2014 % Market Share Feb-2014 Net Net # ETPs % Market Share * Providers measured at parent company level. [ 20 ]
Europe ETPs Ranked by 2014 YTD Inflows and Outflows ETPs as of February (US$mn) 1 Bloomberg Ticker Inflows Feb-14 Vanguard S&P 500 UCITS ETF VUSA LN 793 ishares J.P. Morgan $ Emerging Markets Bond UCITS ETF SEMB LN 566 UBS-ETF MSCI USA ** USACHA SW ** 513 ** ** UBS ETF DJ Euro STOXX 50 E50EUA SW ** 451 ** ishares MSCI Japan - B UCITS ETF (Acc) CSJP SW 413 UBS ETF MSCI Emerging Markets TRN INDEX SF A ** ** EGUSAS SW 396 ** ishares Euro Corporate Bond UCITS ETF IEBC LN 374 UBS MSCI United Kingdom UCITS ETF - A AC UKGBPB SW 361 ** UBS-ETF MSCI EMU ** EMUEUA GY 347 ** ishares $ Treasury Bond 1-3yr UCITS ETF IBTS LN 344 Grand Total 4,557 3,397 3,304 1,996 826 1,437 1,274 4,075 448* 412 1,622 2,611 20,990 ETPs as of February (US$mn) 1 Bloomberg Ticker Outflows Feb-14 UBS ETF DJ Euro STOXX 50 I ** E50EUI SW ** (562) ** 0 ** ishares MSCI World UCITS ETF (Inc) IWRD LN (479) 6,937 ishares MSCI Emerging Markets UCITS ETF (Inc) IEEM LN (405) 4,737 UBS ETF FTSE 100 SF F1GBAS SW (402) 101 db x-trackers MSCI Emerging Market TRN Index ETF XMEM GY (318) 2,475 UBS-ETF MSCI World I ** WRDUSI SW ** (315) ** 0 ** ishares MSCI Emerging Markets UCITS ETF (LUX) CSEM SW (303) 614 UBS-ETF MSCI Japan I ** JPNJPI SW ** (282) ** 0 ** ishares FTSE 100 UCITS ETF (Inc) ISF LN (263) 7,029 UBS-ETF MSCI Emerging Markets I Grand Total ** EMMUSI SW ** (232) ** 0 ** (3,562) 21,893 * Representing aggregate AUM attributed from all individual share classes. are attributed per share class. ** Due to fund merger and elimination of institutional share class. [ 21 ]
European ETP by Exposure: Equity Exposure (US$mn) 1 Feb 2014 Net 2014 YTD Net % of % of # ETPs Pan-European Size and Style Pan European Sector Large Cap 69.2 (43.2) (0.5) 36,685.4 8.6 67 Mid Cap 26.4 (19.3) (0.2) 1,265.5 0.3 9 Small Cap 23.2 272.0 3.0 3,149.5 0.7 11 Total Market 295.3 942.4 10.2 26,310.4 6.1 61 Size and Style Total 414.1 1,151.9 12.5 67,410.8 15.7 148 Basic Materials 137.0 (99.5) (1.1) 1,102.4 0.3 13 Consumer Cyclicals 90.8 33.4 0.4 703.6 0.2 19 Consumer Non-cyclicals (9.6) (28.2) (0.3) 584.4 0.1 8 Energy 16.2 16.8 0.2 634.5 0.1 10 Financials 168.6 587.0 6.4 5,273.0 1.2 25 Health Care 82.8 82.4 0.9 1,301.6 0.3 11 Industrials (84.3) 37.0 0.4 1,110.2 0.3 19 Real Estate 114.9 217.4 2.4 2,354.0 0.5 10 Technology 52.7 43.4 0.5 307.0 0.1 9 Telecommunications (152.9) (138.3) (1.5) 502.3 0.1 9 Utilities (37.1) (34.6) (0.4) 431.1 0.1 8 Theme (0.1) 11.8 0.1 303.1 0.1 7 Sector Total 379.1 728.7 7.9 14,607.1 3.4 148 Pan European Strategy 82.2 97.5 1.1 3,344.9 0.8 16 Nordic Regional - - - 15.6 0.0 1 Pan European Total 875.4 1,978.1 21.5 85,378.3 19.9 313 Europe Single Country Germany 233.3 (215.7) (2.3) 34,614.2 8.1 51 U.K. 6.2 173.6 1.9 17,820.1 4.2 49 Switzerland 360.4 437.1 4.7 10,290.9 2.4 30 France 79.3 23.8 0.3 5,675.0 1.3 15 Sweden (101.2) (214.2) (2.3) 2,666.5 0.6 12 Italy 267.3 365.9 4.0 4,018.1 0.9 15 Others 100.2 338.7 3.7 2,971.4 0.7 28 Single Country Total 945.6 909.2 9.9 78,056.1 18.2 200 Europe Equity Total 1,821.0 2,887.4 31.3 163,434.4 38.1 513 North America 622.1 2,769.4 30.1 52,277.8 12.2 153 Asia-Pacific (92.6) 438.0 4.8 22,614.3 5.3 103 Global 48.7 202.8 2.2 26,851.8 6.3 116 Developed Equity Total 2,399.2 6,297.6 68.4 265,178.3 61.8 885 Emerging Markets Equity Broad (348.4) (1,041.1) (11.3) 13,583.8 3.2 47 Regional (111.5) (323.0) (3.5) 3,246.9 0.8 36 Country (139.1) 90.6 1.0 11,064.0 2.6 101 EM Equity Total (598.9) (1,273.5) (13.8) 27,894.7 6.5 184 Equity Total 1,800.3 5,024.1 54.5 293,073.0 68.3 1,069 [ 22 ]
European ETP by Exposure: Fixed Income, Commodities & Others Exposure (US$mn) 1 Feb 2014 Net 2014 YTD Net % of % of # ETPs Broad/Aggregate 34.6 212.9 2.3 1,813.7 0.4 6 Govt/Corp 154.9 200.5 2.2 1,559.8 0.4 4 Emerging Markets 587.4 595.1 6.5 6,262.1 1.5 17 Government Sovereign 540.1 1,661.4 18.0 33,119.4 7.7 172 U.S. Government 248.2 268.2 2.9 3,742.8 0.9 25 Government Total 788.4 1,929.6 20.9 36,862.1 8.6 197 Fixed Income High Yield Corporate 392.4 815.1 8.8 7,124.1 1.7 12 Inflation 145.5 190.8 2.1 4,479.8 1.0 18 Investment Grade Corporate 446.0 1,144.8 12.4 21,132.8 4.9 42 Money Market (151.2) (316.5) (3.4) 4,225.7 1.0 14 Mortgage (55.9) (37.2) (0.4) 1,408.1 0.3 3 Others 3.9 28.5 0.3 2,740.4 0.6 19 Fixed Income Total 2,346.0 4,763.7 51.7 87,608.8 20.4 332 Broad Market 132.6 13.1 0.1 6,195.7 1.4 82 Agriculture (8.3) (23.3) (0.3) 2,878.6 0.7 151 Energy (23.6) (153.0) (1.7) 3,119.5 0.7 153 Industrial Metals (66.1) 45.7 0.5 1,432.9 0.3 92 Commodities Gold (27.9) (580.7) (6.3) 25,924.5 6.0 63 Precious Metals Silver 175.6 125.5 1.4 4,025.9 0.9 47 Other 18.9 27.8 0.3 2,923.8 0.7 59 Precious Metals Total 166.6 (427.4) (4.6) 32,874.2 7.7 169 Commodities Total 201.3 (544.8) (5.9) 46,500.9 10.8 647 Volatility (12.8) (35.1) (0.4) 185.6 0.0 25 Alternatives Others (30.8) (25.7) (0.3) 733.5 0.2 16 Alternatives Total (43.5) (60.8) (0.7) 919.1 0.2 41 Asset Allocation 2.2 8.8 0.1 209.9 0.0 3 Currency 10.5 22.7 0.2 495.4 0.1 88 Europe ETP Total 4,316.7 9,213.7 100.0 428,807.2 100.0 2,180 [ 23 ]
Asia Pacific ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS
Asia Pacific ETP Multi-Year Asset Growth and Top 10 Providers Asia Pacific ETP & Number of ETPs by Year 1 ($bn) # of ETPs $180 632 644 700 $160 542 600 $140 432 500 $120 $100 312 400 217 $80 169 169 87 173 300 62 137 $60 45 42 200 38 87 93 $40 29 64 52 100 $20 12 10 25 34 39 42 53 61 $0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Feb-14 Asia Pacific ETP Providers Ranked by (US$bn) 1 Provider * Feb-2014 % Market Share Feb-2014 Net Net # ETPs Change % Market Share Nomura Group 38.8 22.9 1.8 4.2 53 2.4 1.4 Nikko Asset Management 17.9 10.6 0.5 0.5 26 (0.3) (0.2) Daiwa Securities Group 16.1 9.5 1.0 0.7 23 0.1 0.0 State Street 13.7 8.1 0.1 0.2 18 0.1 0.1 ishares 9.7 5.7 0.1 0.8 28 0.4 0.2 Samsung Group 9.2 5.4 0.0 0.3 30 (0.1) (0.1) China AMC 8.1 4.8 (0.4) 0.1 11 (0.5) (0.3) HSBC 8.0 4.7 0.1 0.4 10 0.0 0.0 Mitsubishi Group 6.3 3.7 0.3 0.4 14 0.1 0.1 Harvest Fund Management 4.7 2.8 0.0 (0.2) 7 (0.6) (0.3) 89 other providers in Asia Pacific 36.8 21.7 0.1 0.8 424 (1.2) (0.8) Grand Total 169.1 100.0 3.5 8.3 644 0.4 0.0 * Providers measured at parent company level. [ 25 ]