IPREO REGIONAL FLOW OF FUNDS SERIES1igflvrxbfpltom39pcvljnx.wpengine.netdna-cdn.com/... · • Alternative inflows topped buying activity led by Deutsche Asset Management (UK) which

IPREO REGIONAL FLOW OF FUNDS SERIES

Western Europe

REIT’s

Q2 2017

5.948717949

Institutional Investment Flow Highlights

Flow of Funds: WEU REIT's

Market Overview

-500

-400

-300

-200

-100

0

100

200

300

400

500

W. E

uro

pe

N. A

mer

ica

UK

& Ir

elan

d

Scan

din

avia

Asi

a

Res

t o

f W

orl

d

Oth

er

Net Change ($M Value) by Region

Q3-16

Q4-16

Q1-17

Q2-17

-600

-500

-400

-300

-200

-100

0

100

200

300

400

Agg

Gr.

/Gro

wth

Dee

p V

al./

Val

ue

Ind

ex

GA

RP

Spec

ialt

y

Yiel

d

Alt

ern

ativ

e

Net Change ($M Value) by Style

Q3-16

Q4-16

Q1-17

Q2-17

W. Europe 38.4%

N. America 35.3%

UK & Ireland 14.8%

Scandinavia 6.0% Asia

4.3%

Rest of World 1.1%

Other 0.1%

Ownership by Region

Agg Gr./Growth 29.0%

Deep Val./Value 34.9%

Index 19.1%

GARP 2.3%

Specialty 4.8%

Yield 8.5%

Alternative 1.4%

Ownership by Style

• Q2-17 investor sentiment continued to show US equities out of favour. "US equities were judged “by far” the most overvalued globally, with a net 84pc saying they are overvalued. Three quarters of respondents said US and global internet stocks were either “expensive” or “bubble like”, according to Bank of America Merrill Lynch (BAML) survey results for June 2017. The tech-heavy Nasdaq share index was seen as the “most crowded trade”, followed by Eurozone equities, which had enjoyed a lift after Emmanuel Macron’s victory. France was the most popular equity market in Europe in the same survey followed closely by Germany.

• Ipreo's analysis of Q2-17 funds flows showed, net inflows into Western European equities continued to grow for the third successive quarter nearly tripling to +$29.9B currently vs +$9.2B in the preceding quarter. The bulk of net inflows into the region continued to be driven by North American managers, particularly Index investors.

• That said the inflows into Europe are; • Predominantly focused on Central & Northern Europe which saw +$33.3B of net inflows. Swedish and German equities were top beneficiaries. Whilst just Austrian

and Luxembourg listed equities registered net outflows, -$152M and -$106M respectively. • Whilst the Q1-17 Passive-Active mix of inflows was on par 50-50, Q2-17 saw Passive inflows accelerate resulting in a 60-40 mix of Passive-Active inflows. The latter

is unsurprising given that investors piled record money into passive strategies. For example, consultancy ETFGI notes that more money came into ETFs over the first seven months of 2017 than did in the whole of 2016.

• North American driven with Scandinavian investors as the second largest buyers overall. Scandinavian managers are notable as the only consistent buyer of WEU equities over the last 12 months adding +$19.8B.

• UK & Ireland investors on the other hand turned bullish Q2-17 having been net sellers in all of the preceding quarter. UK & Ireland investors are however by far the top sellers of WEU equities over the last 12 months, -$34.1B.

WEU REITS • WEU Real Estate registered cumulative net outflows over the last 12 months, -$1.7B. The bulk of this selling was led by UK & Ireland, Growth and Value investors. WEU

Real Estate net Index inflows (+$1.3B) mirrored the direction of wider WEU inflows, Yield ownership rose +$150M against a backdrop of strong selling across WEU equities in general by Yield investors. In contrast to WEU Real Estate, WEU REITs equities saw net selling by investors in the same 12 month period.

• At a sub-sector level both WEU Real Estate Development and WEU Real Estate Investment Trusts registered net inflows. WEU Property Management equities were the most sold. Spanish REITS were the top destination for investment fund flows in Q2-17 namely; Axiare Patrimonio, Lar Espana Real Estate Socimi and MERLIN Properties.

• North American investors drove inflows in Q2-17 but this was characteristically led by Index investors , Vanguard Group and BlackRock Fund Advisors. • On the Active front top North American buyers included MFS Investment Management, Franklin Templeton Institutional, Wellington Management Company and Cohen

& Steers Capital Management. The Richard Gable managed MFS Global Real Estate Fund for one maintained top ten country level exposure to Netherlands, German and French REITs within WEU (ex UK). The latest public filing data for this fund shows buying across its existing WEU REIT portfolio which includes Unibail-Rodamco, Hibernia, Grand City Properties, Derwent London, Shaftesbury and Londonmetric Property.

• WEU investors proved strong detractors pulling -$298M from WEU REITs in Q2-17. Outflows were driven by Value investors which accounted for over 50% of net selling

• Index inflows continued and accelerated to +$232M, an almost 6x rise in net inflows over the previous quarter. • Alternative inflows topped buying activity led by Deutsche Asset Management (UK) which nearly trippled exposure to the sector with a +$80M purchase. According to the

latest public filing data Deutsche Asset Management was buying Axiare Patrimonio (+$89M), in addition to smaller increases in exposure to Klepierre, Gecina, Icade and Conwert Immobilien Invest whilst Unibail-Rodamco topped WEU REIT selling.

• WEU Real Estate overall has seen -$544M in outflows in H1-17 and WEU REITs mirrored this trend with -$559M in outflows over the same period.

©2017 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any info rmational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.

Flow of Funds: WEU REIT's

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) 1,737,694 2,899 33 80 France (Paris) 325,101 1,996 -80 83

Netherlands (Amsterdam) 169,343 2,534 13 8 United Kingdom (London) 1,737,694 2,899 33 80

United States (New York) 1,899,895 2,340 74 32 Spain (Madrid) 66,540 373 -49 55

Canada (Montreal) 90,298 2,306 0 2 United States (New York) 1,899,895 2,340 74 32

France (Paris) 325,101 1,996 -80 83 Canada (Toronto) 535,957 233 0 19

Norway (Oslo) 641,467 1,753 25 4 Germany (Frankfurt) 303,966 889 -16 18

United States (Boston) 1,871,316 1,305 43 14 Japan (Tokyo) 632,131 402 18 17

Belgium (Brussels) 57,132 1,120 -75 7 Luxembourg (Luxembourg) 30,174 63 -0 17

Germany (Frankfurt) 303,966 889 -16 18 Sweden (Stockholm) 127,551 113 13 16

United States (Baltimore) 619,381 762 -8 2 Italy (Milan) 49,492 91 4 15

Excludes Passive/Index Investors 17,905 8 250 Excludes Passive/Index Investors 9,398 -2 352

Top Holders Country Turnover Value ($M) Change ($M) % Port.

% Port.

Chg

Caisse de dépôt et placement du Québec Canada Low 2,306.0 0.0 2.6 0.0

APG Asset Management N.V. Netherlands Low 1,957.2 0.0 1.3 0.0

Norges Bank Investment Management (Norway) Norway Low 1,732.2 24.4 0.3 1.4

SAFE (Hong Kong) Hong Kong Low 633.2 0.0 4.5 0.0

AXA Investment Managers Paris S.A. France Low 622.6 13.7 3.8 2.2

Northern Cross, LLC United States Low 616.2 -87.5 1.9 -12.4

Deutsche Asset Management Investment GmbH Germany Low 586.6 -2.8 0.5 -0.5

BlackRock Investment Management (U.K.), LTD United Kingdom Low 561.3 69.9 0.2 14.2

LaSalle Investment Management Securities, LLC United States Medium 552.6 2.6 4.7 0.5

PGGM Vermogensbeheer B.V. Netherlands Low 548.3 0.0 2.4 0.0

7,251.1 38.1

Top Buyers Country Turnover Value ($M) Change ($M) % Port.

% Port.

Chg

Deutsche Asset Management (UK), LTD United Kingdom High 119.5 80.4 2.5 205.7

MFS Investment Management United States Low 129.0 73.7 0.0 133.2

BlackRock Investment Management (U.K.), LTD United Kingdom Low 561.3 69.9 0.2 14.2

Franklin Templeton Institutional, LLC United States Medium 119.4 59.1 1.7 98.0

Wellington Management Company, LLP United States Low 232.8 39.2 0.0 20.3

Cohen & Steers Capital Management, Inc. United States Medium 328.3 39.2 0.7 13.5

Thames River Capital, LLP United Kingdom Medium 311.9 35.8 14.7 13.0

OppenheimerFunds, Inc United States Medium 35.0 34.3 0.0 5,059.6

Nordea Investment Management (Denmark) Denmark Medium 48.9 29.1 0.1 147.4

Norges Bank Investment Management (Norway) Norway Low 1,732.2 24.4 0.3 1.4

3,618.3 485.2

Top Sellers Country Turnover Value ($M) Change ($M) % Port.

% Port.

Chg

Northern Cross, LLC United States Low 616.2 -87.5 1.9 -12.4

Aberdeen Asset Managers, LTD (U.K.) United Kingdom Low 99.7 -72.1 0.1 -42.0

Amundi Asset Management S.A. France Medium 242.8 -61.7 0.3 -20.3

BNP Paribas Asset Management Belgium Belgium Medium 220.8 -44.3 3.7 -16.7

Standard Life Investments, LTD (U.K.) United Kingdom Medium 430.0 -42.2 0.6 -8.9

Invesco Advisers, Inc. United States Low 262.2 -36.5 0.1 -12.2

UBS Asset Management (U.K.), LTD United Kingdom Low 173.2 -32.8 0.2 -15.9

J.P. Morgan Investment Management, Inc. United States Medium 450.7 -31.4 0.2 -6.5

T. Rowe Price International, LTD United Kingdom Medium 163.9 -30.7 0.6 -15.8

Candriam Belgium S.A. Belgium Medium 103.1 -22.7 0.6 -18.0

2,762.6 -461.9

BOUGHT Securities Country

Axiare Patrimonio SOCIMI SA Spain

Grand City Properties S.A. Luxembourg

Fonciere des Regions S.A. France

Lar Espana Real Estate Socimi SA Spain

Xior Student Housing N.V. Belgium

SOLD Securities Country

Gecina S.A. France

Unibail-Rodamco SE France

Wereldhave N.V. Netherlands

Alstria Office Reit-AG Germany

Hamborner REIT AG Germany

Growth 29,783

Growth 16,556

Growth 179,309

Value 69,410

Growth 265,786

475,775

Equity Assets ($M)

31,720

98,541

77,133

Change ($M)

Growth

Value

Equity Assets ($M)

16,505

14,045

613,536

152,033

90,210

Equity Assets ($M)

4,836

278,949

340,247

7,136

6,018

66,215

Value

Style

Value

-6.3

Change ($M)

-111.9

-37.9

-23.9

-13.2

20.5

23.3

35.3

60.5

147.8

Most Bought & Sold Stocks

Most Invested Most Investors

Top Holders, Buyers & Sellers

Top Invested Cities

Style

Growth

Value

Yield

Value

Style

Alternative

Value

Growth

Growth

Value

Growth

Growth

Yield 22,601

11,836

340,247

125,569

31,720

Specialty

Growth

Value

Value

Value 68,496

Value 613,536

Specialty 44,707

Growth 2,122

Growth 156,001

for any actions or decisions taken by any person as a result of any information contained herein.

©2017 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any info rmational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.

• Diversified REIT Gecina and Retail focused REIT Unibail-Rodamco topped outflows whilst Industrial/Office REIT Axiare Patrimonio and Residential focused REIT Grand City Properties.

-150

-100

-50

0

50

100

150

200

$M

Ch

ange

Most Bought & Sold Countries

Flow of Funds: WEU REIT's

> Visit Ipreoink.com for more regional flow of funds reports and other insightful articles

ABOUT IPREO

We work as an extension of our clients' Investor Relations team

Ipreo is a leading global provider of financial services technology, data and analytics. We support all participants in the capitalraising

process including banks, public and private companies, institutional and individual investors, as well as research, asset

management and wealth management firms. Our extensive suite of investor relations services provides our corporate clients with

unparalleled cross-asset class surveillance, investor targeting, buy-side perception studies, transaction analysis and predictive

analytics. Additionally, Ipreo’s BD Corporate IR workflow platform offers the most accurate and comprehensive database covering

global institutional contacts, profiles, and ownership data. Our critical insights and flexible solutions help our clients run more

effective investor relations programs. Ipreo is private-equity held by Blackstone and Goldman Sachs Merchant Banking Division, and

has more than 1,000 employees, supporting clients in every major financial hub around the world.

GET IN TOUCH Tel: +44 (0)20 7665 9741 or email us at [email protected]

for any actions or decisions taken by any person as a result of any information contained herein.