IPREO REGIONAL FLOW OF FUNDS SERIES

Western Europe

Consumer Services

Q4 2017

Flow of Funds: WEU Consumer Services

Market Overview

Ownership by Investor Region vs Issuer Region Ownership by Investor Style vs Issuer Region

Institutional Investment Flow Highlights

• Global equities completed a strong year with gains in the fourth quarter of 2017. According to Cordatus, “The World Bank claimed that the world economy is for the first time since the financial crash operating at its full potential. The improvement in output last year was particularly marked in Europe and Asia. In line with the improving global picture, the Eurozone's economy not only continued its rehabilitation in 2017, but enjoyed its fastest annual rate of growth for a decade. "

• Q4-17 Western European (WEU) equity fund flows remained strong and positive (+$23.5B), and thus also accounts for an overall inflow for 2017 with the only outflow occuring in Q1-17 when UK & Ireland was bearish on WEU equities. North America continues to be the largest contributor to WEU and has been since Q4-16.

• According to the Bank of America Merrill Lynch's (BAML) monthly fund managers’ survey, "Despite surging credit and equity markets, investors increased their cash balance back into buy territory," said Michael Hartnett, Chief Investment Strategist. "This paves the way for more risk asset upside in the beginning of 2018."

• Value oriented investors led buying into WEU Consumer Services (+$1.3B) for the 2nd consecutive quarter followed by GARP and Index investors. Active investors responsible for inflows into the Sector are Capital Research Global, Harriss Associates and Amundi Asset Management. Harris Associates has been pouring money into most sectors in WEU, with heavy buying into WEU Consumer Services. The primary beneficiary of these inflows in the sector was H&M Hennes and Maurtiz and Publices Groupe.

• Growth investors turn bearish and lead selling within WEU Consumer Services. Driving these sales are Standard Life Investments and Jennison Associates, with the former down -$679M, pulling funds various stocks including TUI.

Within WEUConsumer Services all regions were buying. North America dominates buying in the current period +807M, followed by Western Europe (+$789M) and UK & Ireland (+$286M). Inflows were led by Capital Research Global (+$609M) and Harris Associates (+$595M). According to mutual fund data Capital Research Global has largely been pouring money into Consumer Services through its American Funds Capital World Growth and Income Fund managed by Joyce Gordon, Alfonso Barroso and Eric Richter.

• Despite buying, versus a WEU proportional ownership benchmark, WEU Consumer Services is underweight in North American ownership by 6.4pp, while UK & Ireland is overweight by 5.5pp compared to the same benchmark.

• The growth of passive inflows outstripped active inflows, +26.9% vs 21.2% and has done since Q4-16. Despite the increase in passive investments, these investors remain underweight compared to the wider WEU ownership.

• The main destination of fund inflows into WEU Consumer Services for the review period was Personal Services followed by Retail. The top beneficiary within Personal Services was Securitas. More notably Travel Services and Leisure was the most sold, down -$466M within the sector with primary outflows from Tui.

©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.

-5,000.0

-4,000.0

-3,000.0

-2,000.0

-1,000.0

0.0

1,000.0

2,000.0

3,000.0

4,000.0

N. America W. Europe UK & Ireland Scandinavia MENA Asia Other

Net Change ($M) by Region

Q1-17 Q2-17 Q3-17 Q4-17

-1,500.0

-1,000.0

-500.0

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

AggGr./Growth

DeepVal./Value

Index GARP Specialty Yield Alternative

Net Change ($M) by Style

Q1-17 Q2-17 Q3-17 Q4-17

WEU

E. Europe 0.1%

Rest of World 0.6%

MENA 1.2%

Asia 0.9%

Scandinavia 16.4%

UK & Ireland 15.3%

W. Europe 28.3%

N. America 37.2%

WEU Consumer Services

E. Europe 0.7%

Rest of World 0.5%

MENA 1.2%

Asia 0.8%

Scandinavia 18.5%

UK & Ireland 20.8%

W. Europe 26.7%

N. America 30.8%

WEU Consumer Services

Alternative 4.1%

Yield 2.0%

Specialty 2.3%

GARP 5.5%

Index 13.8%

Deep Val./Value38.0%

Agg Gr./Growth34.3%

WEU

Alternative 3.0%

Yield 2.5%

Specialty 1.1%

GARP 6.1%

Index 17.7%

Deep Val./Value 36.8%

Agg Gr./Growth 32.8%

Flow of Funds: WEU Consumer Services

Most Bought & Sold Stocks

©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

Active vs. Passive Investment (% Chg)

Active Passive

81.6% 75.6%

18.4% 24.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

WEU Consumer Services WEU

Ownership by Orientation vs Issuer Region

Active Passive

-600.0 -200.0 200.0 600.0

Homebuilding

Media

Personal Services

Retail

Transportation Services

Travel Services and Leisure

Most Bought & Sold Sectors - Active Investors

-100.0 0.0 100.0 200.0 300.0 400.0 500.0

Homebuilding

Media

Personal Services

Retail

Transportation Services

Travel Services and Leisure

Most Bought & Sold Sectors - Passive Investors

Country / City

Total Equity

Assets ($M)

Value

($M)

Activity

($M)

#

Firms Country / City

Total Equity

Assets ($M)

Value

($M)

Activity

($M)

#

Firms

United Kingdom (London) 3,089,498.1 54,651.7 955.4 211 United Kingdom (London) 3,089,498.1 54,651.7 955.4 211

France (Paris) 618,625.7 28,789.3 63.8 188 France (Paris) 618,625.7 28,789.3 63.8 188

Sweden (Stockholm) 432,249.4 28,413.3 -95.3 93 United States (New York) 3,688,363.3 17,914.6 -312.8 148

United States (New York) 3,688,363.3 17,914.6 -312.8 148 Sweden (Stockholm) 432,249.4 28,413.3 -95.3 93

United States (Boston) 4,333,311.9 14,119.3 -264.0 43 Spain (Madrid) 77,795.2 4,111.1 76.0 83

Norway (Oslo) 721,746.3 14,012.2 371.8 25 Germany (Frankfurt) 373,830.8 9,149.1 -162.3 54

United States (Malvern) 2,956,980.1 11,321.7 461.7 1 Finland (Helsinki) 68,047.4 3,423.5 9.8 51

United States (Los Angeles) 1,358,189.4 9,376.2 555.5 16 Luxembourg (Luxembourg) 50,134.5 1,624.8 -28.7 51

United States (San Francisco) 2,706,461.4 9,320.1 182.1 19 Finland () 2,765.8 354.1 1.6 50

Germany (Frankfurt) 373,830.8 9,149.1 -162.3 54 Switzerland (Zürich) 382,059.9 4,042.5 81.8 46

United Kingdom (Edinburgh) 359,305.7 6,297.0 -654.8 21 Switzerland (Geneva) 121,296.0 1,780.7 -7.7 46

Netherlands (Rotterdam) 56,250.9 5,345.3 28.7 3 United States (Boston) 4,333,311.9 14,119.3 -264.0 43

United States (Chicago) 960,221.8 5,018.1 504.7 37 Canada (Toronto) 846,383.0 3,199.4 -96.5 43

Spain (Madrid) 77,795.2 4,111.1 76.0 83 United States (Chicago) 960,221.8 5,018.1 504.7 37

Switzerland (Zürich) 382,059.9 4,042.5 81.8 46 Japan (Tokyo) 970,628.3 685.9 -19.8 35

Includes Active & Passive Investors 221,881.5 1,792.3 988 Includes Active & Passive Investors 177,277.4 706.0 1,179

Top Invested Cities

MO

ST IN

VES

TED

MO

ST IN

VES

TOR

S

Security Industry Change $M

Bertelsmann SE & Co. KGaA Media 419.9

H&M Hennes and Mauritz AB Retail 386.2

Ferguson PLC Wholesale 307.2

Securitas AB Personal Services 259.9

SMCP S.A. Retail 241.0

Assa Abloy AB Personal Services 240.5

Relx NV Media 218.9

Aedas Homes, S.A.U. Homebuilding 208.0

Deutsche Lufthansa AG Transportation Services 203.8

Telegraaf Media Groep N.V. Media 190.4

Includes Active & Passive Investors 2,675.8

BO

UG

HT

Security Industry Change $M

Criteo S.A. Media -444.4

Industria de Diseno Textil S.A. Retail -332.3

The Swatch Group, LTD Retail -269.1

Distribuidora Internacional de Alimentación S.A.Retail -261.6

International Consolidated Airlines Group S.A. Transportation Services -231.6

Television Francaise 1 S.A. Media -231.2

Havas S.A. Media -190.7

Tui AG Travel Services and Leisure -140.4

Zalando SE Retail -130.3

JM AB Homebuilding -110.5

Includes Active & Passive Investors -2,342.1

SOLD

Flow of Funds: WEU Consumer Services

Top Active & Passive Holders, Buyers & Sellers

©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.

Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg

The Vanguard Group, Inc. P United States Index Low 2,956,980.1 11,321.7 461.7 0.4% 4.3%

Norges Bank Investment Management (Norway) SWF Norway Value Low 655,044.7 11,058.6 243.5 1.7% 2.3%

BlackRock Fund Advisors P United States Index Low 2,009,753.7 7,076.1 152.2 0.4% 2.2%

Capital World Investors (U.S.) United States Value Low 710,393.8 5,698.7 -78.8 0.8% -1.4%

Investment AB Kinnevik (Investment Management) Sweden Deep Value Low 9,806.0 5,311.8 0.0 54.2% 0.0%

Fidelity Management & Research Company United States Growth Low 938,590.5 5,232.0 -120.3 0.6% -2.2%

HAL Investments B.V. Netherlands Specialty Low 10,060.0 4,962.6 0.0 49.3% 0.0%

Swedbank Robur Fonder AB Sweden Growth Low 83,137.3 4,209.7 -120.6 5.1% -2.8%

Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 417,086.0 3,858.5 51.6 0.9% 1.4%

Fidelity International Limited - FIL Investment Services (U.K.), LTD United Kingdom Growth Medium 107,625.0 3,832.5 169.8 3.6% 4.6%

BlackRock Advisors (U.K.), LTD P United Kingdom Index Low 153,834.4 3,824.7 31.7 2.5% 0.8%

Harris Associates, L.P. United States Value Low 115,954.8 3,523.0 595.4 3.0% 20.3%

DNCA Finance S.A. France Deep Value Low 18,262.5 3,371.8 109.8 18.5% 3.4%

OppenheimerFunds, Inc United States Growth Medium 167,882.0 3,228.3 25.9 1.9% 0.8%

Amundi Asset Management S.A. France Value Medium 91,691.7 2,990.8 468.0 3.3% 18.6%

State Street Global Advisors (SSgA) P United States Index Low 1,321,942.6 2,967.1 213.4 0.2% 7.7%

Newton Investment Management, LTD United Kingdom Growth Low 46,628.1 2,869.6 9.4 6.2% 0.3%

Capital Research Global Investors (U.S.) United States GARP Low 478,004.7 2,849.6 609.9 0.6% 27.2%

Henderson Global Investors, LTD (U.K.) United Kingdom Growth Medium 57,942.1 2,830.3 152.5 4.9% 5.7%

Baillie Gifford & Company, LTD United Kingdom Growth Low 149,056.5 2,818.9 51.8 1.9% 1.9%

93,836.4 3,026.9

Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg

Capital Research Global Investors (U.S.) United States GARP Low 478,004.7 2,849.6 609.9 0.6% 27.2%

Harris Associates, L.P. United States Value Low 115,954.8 3,523.0 595.4 3.0% 20.3%

Amundi Asset Management S.A. France Value Medium 91,691.7 2,990.8 468.0 3.3% 18.6%

The Vanguard Group, Inc. P United States Index Low 2,956,980.1 11,321.7 461.7 0.4% 4.3%

Aviva Investors Global Services, LTD (U.K.) United Kingdom Growth Low 51,532.5 741.1 348.5 1.4% 88.8%

Norges Bank Investment Management (Norway) SWF Norway Value Low 655,044.7 11,058.6 243.5 1.7% 2.3%

State Street Global Advisors (SSgA) P United States Index Low 1,321,942.6 2,967.1 213.4 0.2% 7.7%

Mondrian Investment Partners, LTD United Kingdom Value Low 23,956.0 915.7 211.2 3.8% 30.0%

J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 122,775.0 2,298.6 210.0 1.9% 10.1%

Röcker & Walz Vermögensverwaltung GmbH Germany Value Low 431.6 326.5 185.0 75.7% 130.7%

DJE Kapital AG Germany GARP High 5,257.9 434.3 183.6 8.3% 73.3%

Davis Selected Advisers, L.P. United States Value Low 25,300.4 172.8 172.8 0.7% Buy-in

Fidelity International Limited - FIL Investment Services (U.K.), LTD United Kingdom Growth Medium 107,625.0 3,832.5 169.8 3.6% 4.6%

Danske Capital AB (Sweden) Sweden Deep Value High 5,028.5 354.8 161.0 7.1% 83.1%

Henderson Global Investors, LTD (U.K.) United Kingdom Growth Medium 57,942.1 2,830.3 152.5 4.9% 5.7%

BlackRock Fund Advisors P United States Index Low 2,009,753.7 7,076.1 152.2 0.4% 2.2%

Nordea Investment Management AB (Sweden) Sweden Value Low 20,974.0 1,570.7 151.1 7.5% 10.6%

Mawer Investment Management, LTD Canada Growth Low 28,895.3 758.3 130.5 2.6% 20.8%

Goldman Sachs Asset Management, L.P. (U.S.) United States GARP Medium 135,245.3 727.8 121.3 0.5% 20.0%

TIAA-CREF Investment Management, LLC United States Growth Low 320,633.8 2,125.3 115.6 0.7% 5.7%

58,875.7 5,057.0

Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg

Standard Life Investments, LTD (U.K.) United Kingdom Growth Medium 72,179.5 1,857.4 -679.6 2.6% -26.8%

Jennison Associates, LLC United States Growth Medium 105,207.3 354.8 -249.1 0.3% -41.2%

BlackRock Advisors, LLC United States Value Low 297,879.0 557.1 -193.5 0.2% -25.8%

Lyxor Asset Management SAS P France Index High 73,943.0 2,771.0 -177.2 3.7% -6.0%

Deutsche Asset Management (UK), LTD P United Kingdom Index Very High 20,649.1 490.2 -168.2 2.4% -25.6%

Deutsche Asset Management Investment GmbH Germany Value Low 121,866.5 2,101.1 -164.1 1.7% -7.2%

Lazard Asset Management, LLC (U.S.) United States Value Medium 99,696.6 1,350.4 -153.0 1.4% -10.2%

AMF Fonder AB Sweden Growth Low 20,889.1 1,777.1 -143.2 8.5% -7.5%

Handelsbanken Asset Management (Sweden) Sweden Value Low 41,053.4 2,226.9 -129.8 5.4% -5.5%

Swedbank Robur Fonder AB Sweden Growth Low 83,137.3 4,209.7 -120.6 5.1% -2.8%

Fidelity Management & Research Company United States Growth Low 938,590.5 5,232.0 -120.3 0.6% -2.2%

Wellington Management Company, LLP United States Value Low 511,033.1 627.9 -114.0 0.1% -15.4%

AXA Investment Managers Paris S.A. France Growth Low 17,577.5 1,121.4 -111.2 6.4% -9.0%

BNP Paribas Asset Management France France Growth Medium 43,776.8 1,708.9 -109.0 3.9% -6.0%

Artemis Fund Managers, LTD United Kingdom Growth Medium 24,773.5 1,053.6 -107.5 4.3% -9.3%

GSO Capital Partners, L.P. United States Alternative Very High 1,335.5 0.0 -106.4 0.0% -100.0%

Anima SGR S.p.A. Italy Value High 15,437.8 427.4 -105.0 2.8% -19.7%

Waddell & Reed Investment Management Company United States Agg. Growth Medium 57,195.6 350.8 -104.0 0.6% -22.9%

MFS Investment Management United States Value Low 294,805.5 922.1 -103.8 0.3% -10.1%

SEB Investment Management AB Sweden Value Medium 40,407.0 1,814.9 -92.3 4.5% -4.8%

Includes Investors with EUM greater than $100M. 30,954.8 -3,251.9

SWF - Sovereign Wealth Fund; HF - Hedge Fund/Alternative; P - Passive Investor

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Flow of Funds: WEU Consumer Services

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