How to read EPFR Equity/Bond Fund Flows Reports

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

Equity/Bond Fund Flows Reports Definitions & Method of Calculation

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’

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)

Equity/Bond Fund Flows - Method of Calculation (Cont Example: European Growth Fund BoW Assets: €500m BoW €/US$ exchange rate: 1.275 EoW Assets: €550m EoW €/US$ exchange rate: 1.227 BoW NAV: €10 Average €/US$ exchange rate: 1.251 EoW NAV: €10.6 NAV Performance for the week: 6% (10.6 – 10)/10 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

Assets BoW (Assets Beginning of Week) Total fund assets beginning of week (as of prior Wednesday's market close)

Assets EoW (Assets End of Week) Total fund assets end of week (as of current Wednesday's market close)

Weekly Net Chg (Weekly Net Change) = (Assets EoW) – (Assets BoW) – (Weekly Forex Chg) = (Weekly Portfolio Chg) + (Weekly Flows)

Weekly Portfolio Chg = (Assets BoW) x (Weekly performance of fund)* *change in NAV per share including any dividend distributions

= (Weekly Portfolio Chg) / (Assets BoW)

Weekly Flows = (Assets EoW) – (Assets BoW) – (Weekly Portfolio Chg) – (Weekly Forex Chg)

Weekly Flows % = (Weekly Flows) / (Assets BoW)

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

Geographic Focus Geographic investment focus of fund

GeoFocus Page This page shows weekly aggregate flows by geographic focus

Fund History Page This page shows weekly aggregate flows year to date by fund category

Equity/Bond Fund Flows Reports FAQ & Contact Us

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.

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