Equity/Bond Fund Flows Reports How to read EPFR Equity/Bond Fund Flows Reports EPFR Global 1 Equity/Bond Fund Flows Reports ………………………………………………………………..………… • Calculates “Net Flows” (investor contributions/redemptions) for individual funds and for various fund categories • Net Flows calculations exclude portfolio performance and currency fluctuations • Tracks beginning of period (week/month) and end of period asset levels by fund • Reports are organized by fund category • History sheet shows weekly/monthly aggregate flows year to date by fund category • Covers funds registered for sale in most major developed market jurisdictions and offshore domiciles, including USA, UK, Canada, Luxembourg, Switzerland, Australia, Hong Kong, Channel Islands, Germany, Austria, France and many others • Weekly history for equity available from October 2000 to present; weekly history for bonds available from April 2001 to present • Monthly history available from January 1995 to present EPFR Global 2 Equity/Bond Fund Flows Reports Definitions & Method of Calculation EPFR Global 3 Equity/Bond Fund Flows Data Definitions ………………………………………………………………………………………….…. • Assets BoW: Total fund assets beginning of week • Assets EoW: Total fund assets end of week • Weekly Net Chg: Weekly change in total net assets • Weekly Portfolio Chg: Weekly change due to portfolio performance ($ terms) • Weekly Portfolio Chg %: Weekly change due to portfolio performance based on BoW assets (% terms) • Weekly Flows: Investor purchases/redemptions of fund shares ($ terms) • Weekly Flows %: Investor purchases/redemptions based on BoW assets (% terms) • Fund Curr: Main currency denomination of fund share class • Domicile: Country of legal registration of fund • Advisor: Company responsible for day to day management of portfolio of the fund For monthly reports, ‘weekly’ will be replaced with ‘monthly’ EPFR Global 4 Equity/Bond Fund Flows - Method of Calculation ……………………………………………………………………………………………………..………. Weekly Net Flows = (Weekly Net Chg) – (Weekly Portfolio Chg) Weekly Net Chg Weekly Portfolio Chg = (Assets EoW) – (Assets BoW) – (Weekly Forex Chg) = (Assets BoW) x Weekly performance of the fund* *Change in NAV per share including any dividend distributions or = (Weekly Portfolio Chg) + (Weekly Flows) EPFR Global 5 Equity/Bond Fund Flows - Method of Calculation (Cont.) …………………………………………………………………………………………………………………….………. Example: European Growth Fund BoW Assets: €500m EoW Assets: €550m BoW NAV: €10 EoW NAV: €10.6 NAV Performance for the week: 6% (10.6 – 10)/10 BoW €/US$ exchange rate: 1.275 EoW €/US$ exchange rate: 1.227 Average €/US$ exchange rate: 1.251 Step 1: Calculate Portfolio Change & Fund Flows in local currency Portfolio Change: €500m x 6% = €30m Fund Flows: €550m - €500m - €30m = €20m Step 2: Convert all local currency amounts to US$ BoW Assets: €500m x 1.275 = $637.5m EoW Assets: €550m x 1.227 = $674.85m Portfolio Change: €30m x 1.251 = $37.53m Fund flow: €20m x 1.251 = $25.02m If FX rate remained the same for the week, then BoW Assets + Portfolio Change + Fund Flow would equal EoW Assets Expected EoW Assets: $637.5 + $37.53 + $25.02 = $700.05 Actual EoW Assets: $674.85 Forex change: $700.05 – $674.85 = $25.2m EPFR Global 6 Assets BoW (Assets Beginning of Week) EPFR Global Total fund assets beginning of week (as of prior Wednesday's market close) 7 Assets EoW (Assets End of Week) EPFR Global Total fund assets end of week (as of current Wednesday's market close) 8 Weekly Net Chg (Weekly Net Change) EPFR Global = (Assets EoW) – (Assets BoW) – (Weekly Forex Chg) = (Weekly Portfolio Chg) + (Weekly Flows) 9 Weekly Portfolio Chg = (Assets BoW) x (Weekly performance of fund)* *change in NAV per share including any dividend distributions EPFR Global 10 Weekly Portfolio Chg % EPFR Global = (Weekly Portfolio Chg) / (Assets BoW) 11 Weekly Flows EPFR Global = (Assets EoW) – (Assets BoW) – (Weekly Portfolio Chg) – (Weekly Forex Chg) 12 Weekly Flows % EPFR Global = (Weekly Flows) / (Assets BoW) 13 Fund Curr EPFR Global Main currency denomination of fund share class 14 Domicile EPFR Global Country of legal registration of fund 15 Advisor EPFR Global Company responsible for day to day management of portfolio of the fund 16 Geographic Focus EPFR Global Geographic investment focus of fund 17 GeoFocus Page EPFR Global This page shows weekly aggregate flows by geographic focus 18 Fund History Page EPFR Global This page shows weekly aggregate flows year to date by fund category 19 Equity/Bond Fund Flows Reports FAQ & Contact Us EPFR Global 20 Frequently Asked Questions ………………………………………………………..……… Q: What is the difference between the monthly and weekly Fund Flows reports? A: The Weekly report contains a sub-set of the funds contained in the Monthly report. This is because not all funds report to Emerging Portfolio Fund Research (EPFR) on a weekly basis. Those that do are included in the weekly report. Those that don't can only be seen in the monthly report. The Monthly Fund Flows report has the same format as the Weekly Fund Flows report. Q: Does EPFR Fund Data only cover emerging markets funds? A: No - International funds, Global funds, Developed Europe funds, Pacific funds, Japan funds, and USA funds are also part of our coverage. EPFR Global 21 Sample reports and pricing information are available at http://www.epfr.com/feedback.aspx or please feel free to contact us By Email: marketing@epfr.com By Phone: 1-617-864-4999 Or, visit EPFR website at http://www.epfr.com EPFR Global 22