IPREO REGIONAL FLOW OF FUNDS SERIES
Western Europe
Real Estate
Q4 2017
Flow of Funds: WEU Real Estate
Market Overview
Ownership by Investor Region vs Issuer Region Ownership by Investor Style vs Issuer Region
Institutional Investment Flow Highlights
Western European (WEU) equity fund flows remained positive in Q4 2017 (+$23.4B), but the pace of inflows decelerated from the preceding quarter. Ipreo’s analysis of Q4-17 fund flows showed the bulk of net inflows into the region continued to be driven by North American managers, particularly Index and Aggressive Growth investors. Despite posting positive results, Q4-17 WEU saw a decrease of inflows (-$33.4B) with all regions selling Western Europe except for Scandinavia (+$1B). That said, inflows into WEU are: • Q4-17 Passive-Active mix of inflows continues to show active investors leading the inflows into W. Europe with +$11.3B, whilst Passive investors contribute +$9.6B. • On a style level, Index and Aggressive Growth investors are driving the inflows into WEU, with North American investors Vanguard (+$7.3B), Blackrock (+$5.2B) and Capital World Investor (+$2.6B) leading the buying. • UK & Ireland (-$16B) investors on the other hand turned bullish Q4-17 after being top buyers (+$15B) in Q3-17. Deutsche Asset Management is leading the outflows. • Financials continue to dominate WEU fund flows (+$11.7B) through Banking (+$7.4B), Financial Services (+$4B), and Real Estate (+$1.2B) subsectors. Germany (+$5B), France (+$2.9B) and Italy (+$1.5B) are the main contributors towards the inflows within the Financial Sector, whilst Sweden (-$512m), Finland (-$397M) and Belgium (-$123M) are net outflows. Real Estate: Q4-17 - “The shock result in the EU referendum led to one quarter of negative real estate returns in the UK, but the market has swiftly recovered. Soon after came Donald Trump’s presidential election win and, despite twitter wars and high turnover in his administration, the real estate market continued to perform well. In Europe, the economy strengthened further during elections in Germany and France, with both countries returning an average 2.1% per quarter since the bottom of the cycle.”- Anne Breen (Standard Life Investments) • Real Estate posted positive results after contributing towards the outflows in Q3-17. With a net change of +$2B since last quarter, inflows are led by North American and WEU investors, mainly Index and Value Investors. • At a sub-sector level, WEU Real Estate Development, WEU Real Estate Investment Trust and WEU Property Management registered net inflows. WEU Property Management equities TLG Immobilien AG (+$389M) and IWG PLC (+$273M) are the most bought stock within the Real Estate subsector, contributing massively towards the inflows, closely followed by WEU REIT equities Unibail-Rodamco (+$272M), Fonciere des Regions ($+159M) and WEU Real Estate Management Aroundtown (+$245M). • Axiare Patrimonio SOCIMI SA (-$269M), WCM Beteiligungs und Grundbesitz AG (-$141M) and Buwog AG (-$126M) are the most sold stock. • At a region level, investors are increasing their exposure into France, Luxembourg Sweden, whilst decreasing ownership of holdings into Spain, Austria and Finland.
• Over the past 6 months, North American investors increased their exposure into WEU Real Estate with a net change of +$946M. Index investors are the main drivers of the inflows through Vanguard and Blackrock and Value investor Harris Associate. According to Ipreo latest public filings, Harris Associate is buying into Financial sector, followed by Consumer Goods and Consumer Services. • At a fund level, M. Colin Hudson, Anthony Coniaris and Robert Biering-managed fund Harris Associate U.S. Equity posted positive results. “Holdings in health care and real estate produced the largest positive relative results during the quarter.”
• Value investors have gone from net sellers in previous quarter to net buyers in Q4-17. Amundi (+$199M) is leading the inflows, followed by Handelsbanken Asset Management (Sweden) (+$132M). Growth investors have been consistent sellers of the sector since Q4-16 with the largest quarters seeing an uptick in outflows. Amongst the top ten Growth sellers, Erste Sparinvest Kapitalanlage GmbH is notable the largest, followed by Universal-Investment-Gesellschaft mbH.
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
-1,000.0
-500.0
0.0
500.0
1,000.0
1,500.0
2,000.0
W. Europe N. America UK & Ireland Scandinavia Asia Rest ofWorld
Other
Net Change ($M) by Region
Q1-17 Q2-17 Q3-17 Q4-17
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
800.0
AggGr./Growth
DeepVal./Value
Index GARP Specialty Yield Alternative
Net Change ($M) by Style
Q1-17 Q2-17 Q3-17 Q4-17
WEU
E. Europe 0.1%
Rest of World 0.6%
MENA 1.2%
Asia 0.9%
Scandinavia 16.4%
UK & Ireland 15.3%
W. Europe 28.3%
N. America 37.2%
WEU Real Estate
E. Europe 0.2%
Rest of World 1.0%
MENA 0.8%
Asia 1.7%
Scandinavia 16.0%
UK & Ireland 17.1%
W. Europe 35.8%
N. America 27.4%
WEU Real Estate
Alternative 2.9%
Yield 6.9%
Specialty 3.6%
GARP 3.4%
Index 17.7%
Deep Val./Value 32.0%
Agg Gr./Growth 33.4%
WEU
Alternative 3.0%
Yield 2.5%
Specialty 1.1%
GARP 6.1%
Index 17.7%
Deep Val./Value 36.8%
Agg Gr./Growth 32.8%
Flow of Funds: WEU Real Estate
Most Bought & Sold Stocks
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Active vs. Passive Investment (% Chg)
Active Passive
73.5% 75.6%
26.5% 24.4%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
WEU Real Estate WEU
Ownership by Orientation vs Issuer Region
Active Passive
-400.0 -200.0 0.0 200.0 400.0
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
Most Bought & Sold Sectors - Active Investors
-200.0 0.0 200.0 400.0 600.0
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
Most Bought & Sold Sectors - Passive Investors
Country / City
Total Equity
Assets ($M)
Value
($M)
Activity
($M)
#
Firms Country / City
Total Equity
Assets ($M)
Value
($M)
Activity
($M)
#
Firms
United Kingdom (London) 2,922,398.2 20,156.8 190.3 151 United Kingdom (London) 2,922,398.2 20,156.8 190.3 151
France (Paris) 548,705.6 19,720.9 518.5 147 France (Paris) 548,705.6 19,720.9 518.5 147
Norway (Oslo) 719,337.7 8,373.0 28.5 21 United States (New York) 3,198,997.2 6,330.0 66.3 75
Sweden (Stockholm) 375,815.0 7,693.7 177.1 62 Spain (Madrid) 77,296.4 641.5 -33.7 69
Netherlands (Amsterdam) 197,864.1 7,468.6 21.3 11 Sweden (Stockholm) 375,815.0 7,693.7 177.1 62
United States (New York) 3,198,997.2 6,330.0 66.3 75 Finland (Helsinki) 67,281.4 1,993.4 -87.7 45
United States (Malvern) 2,956,980.4 5,626.3 259.0 1 Germany (Frankfurt) 371,146.8 3,144.2 -195.7 37
United States (Boston) 4,114,205.2 4,474.6 -207.0 28 Luxembourg (Luxembourg) 44,145.0 477.1 -10.4 36
United States (San Francisco) 2,575,300.5 3,705.5 207.7 11 Switzerland (Zürich) 375,434.8 2,284.0 2.4 29
Germany (Frankfurt) 371,146.8 3,144.2 -195.7 37 Canada (Toronto) 785,943.4 1,238.0 72.4 29
Canada (Montreal) 138,736.8 2,849.4 7.5 8 United States (Boston) 4,114,205.2 4,474.6 -207.0 28
Belgium (Brussels) 62,711.6 2,796.5 101.3 9 Italy (Milan) 71,848.9 628.9 148.9 26
United States (Austin) 445,207.6 2,288.8 62.4 3 Germany (Munich) 89,018.6 1,667.6 118.8 24
Switzerland (Zürich) 375,434.8 2,284.0 2.4 29 Japan (Tokyo) 832,984.6 722.7 -15.0 23
Finland (Helsinki) 67,281.4 1,993.4 -87.7 45 United States (Chicago) 876,145.8 903.5 56.4 22
Includes Active & Passive Investors 98,905.6 1,151.9 638 Includes Active & Passive Investors 72,076.8 801.6 803
Top Invested Cities
MO
ST IN
VES
TED
MO
ST IN
VES
TOR
S
Security Country Change $M
TLG Immobilien AG Germany 389.7
IWG Plc Switzerland 273.4
Unibail-Rodamco SE France 272.1
Aroundtown SA Luxembourg 245.1
Fonciere des Regions S.A. France 159.1
Grand City Properties S.A. Luxembourg 154.2
Klepierre SA France 108.0
Lar Espana Real Estate Socimi SA Spain 82.0
Corem Property Group AB Sweden 53.7
Alstria Office Reit-AG Germany 49.1
Includes Active & Passive Investors 1,786.4
BOU
GH
T
Security Country Change $M
Axiare Patrimonio SOCIMI SA Spain -269.4
WCM Beteiligungs und Grundbesitz AG Germany -141.7
Buwog AG Austria -126.2
Technopolis Oyj Finland -120.9
S Immo AG Austria -110.1
TAG Immobilien AG Germany -90.3
LEG Immobilien AG Germany -79.7
Intershop Holding AG Switzerland -66.1
Eurocommercial Properties N.V. Netherlands -55.3
Icade SA France -33.3
Includes Active & Passive Investors -1,093.1
SOLD
Flow of Funds: WEU Real Estate
Top Active & Passive Holders, Buyers & Sellers
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg
Norges Bank Investment Management (Norway) SWF Norway Value Low 655,044.7 7,184.2 41.8 1.1% 0.6%
APG Asset Management N.V. Netherlands Yield Low 174,811.3 6,005.9 0.0 3.4% 0.0%
The Vanguard Group, Inc. P United States Index Low 2,956,980.4 5,626.3 259.0 0.2% 4.8%
BlackRock Advisors (U.K.), LTD P United Kingdom Index Low 153,842.6 3,839.7 77.3 2.5% 2.1%
BlackRock Fund Advisors P United States Index Low 2,009,789.0 2,979.4 176.5 0.1% 6.3%
Caisse de dépôt et placement du Québec Canada Value Low 96,492.3 2,793.1 0.0 2.9% 0.0%
MFS International (U.K.), LTD United Kingdom Growth Low 51,104.8 2,449.1 -2.8 4.8% -0.1%
Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 417,076.7 2,182.6 62.4 0.5% 2.9%
AXA Investment Managers Paris S.A. France Growth Low 17,577.5 1,722.6 -140.4 9.8% -7.5%
BNP Paribas Asset Management France France Growth Medium 43,776.8 1,637.8 12.0 3.7% 0.7%
Thames River Capital, LLP United Kingdom Growth Low 2,617.5 1,533.4 7.7 58.6% 0.5%
Länsförsäkringar Fondförvaltning AB Sweden Growth Low 2,895.4 1,382.0 -14.4 47.7% -1.0%
Lansdowne Partners (UK) LLP HF United Kingdom Alternative Medium 15,454.8 1,324.3 10.1 8.6% 0.8%
State Street Global Advisors (SSgA) P United States Index Low 1,322,360.3 1,324.1 -16.3 0.1% -1.2%
Degroof Petercam Asset Management S.A. Belgium Growth Low 13,916.9 1,246.7 10.7 9.0% 0.9%
BlackRock Asset Management (Deutschland) AG P Germany Index Low 58,110.9 1,150.7 16.9 2.0% 1.5%
CBRE Clarion Securities, LLC United States Specialty High 12,629.3 1,075.8 -145.7 8.5% -11.9%
GIC Asset Management Pte., LTD SWF Singapore Value Low 76,114.5 1,057.9 -76.2 1.4% -6.7%
BlackRock Investment Management (U.K.), LTD United Kingdom Growth Low 397,715.8 1,024.7 3.0 0.3% 0.3%
Lyxor Asset Management SAS P France Index High 73,943.0 1,021.0 270.5 1.4% 36.0%
48,561.2 551.9
Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg
Lyxor Asset Management SAS P France Index High 73,943.0 1,021.0 270.5 1.4% 36.0%
The Vanguard Group, Inc. P United States Index Low 2,956,980.4 5,626.3 259.0 0.2% 4.8%
Amundi Asset Management S.A. France Value Medium 91,691.7 965.9 199.8 1.1% 26.1%
Kempen Capital Management N.V. Netherlands Growth Medium 5,418.0 484.3 185.5 8.9% 62.1%
BlackRock Fund Advisors P United States Index Low 2,009,789.0 2,979.4 176.5 0.1% 6.3%
DIC Asset AG Germany Growth Unknown 405.5 405.5 159.3 100.0% 64.7%
Toscafund Asset Management, LLP United Kingdom Alternative High 1,686.2 160.4 154.1 9.5% 2475.3%
Handelsbanken Asset Management (Sweden) Sweden Value Low 41,053.4 909.2 132.4 2.2% 17.0%
Danske Capital AB (Sweden) Sweden Deep Value High 5,028.5 205.4 112.5 4.1% 121.1%
Harris Associates, L.P. United States Value Low 115,954.8 209.8 102.8 0.2% 96.2%
SEB Investment Management AB Sweden Value Medium 40,217.3 892.2 100.4 2.2% 12.7%
BayernInvest Kapitalverwaltungsgesellschaft mbH Germany Value Medium 741.8 141.8 89.1 19.1% 169.3%
Cohen & Steers UK, LTD United Kingdom Yield Medium 368.7 191.2 81.9 51.9% 74.9%
First Trust Advisors, L.P. P United States Growth Medium 47,746.5 286.3 79.6 0.6% 38.5%
BlackRock Advisors (U.K.), LTD P United Kingdom Index Low 153,842.6 3,839.7 77.3 2.5% 2.1%
EdgePoint Investment Group, Inc. Canada GARP Medium 10,951.2 256.6 76.5 2.3% 42.5%
Franklin Templeton Institutional, LLC United States Growth Medium 6,734.7 182.9 68.5 2.7% 59.9%
Aviva Investors Global Services, LTD (U.K.) United Kingdom Growth Low 51,532.5 166.3 65.1 0.3% 64.4%
Dimensional Fund Advisors, L.P. (U.S.) P United States Value Low 417,076.7 2,182.6 62.4 0.5% 2.9%
Capital Research Global Investors (U.S.) United States GARP Low 478,004.7 444.7 60.8 0.1% 15.8%
21,551.5 2,514.1
Firm Country Style Turnover Equity Assets ($M) Value ($M) Change ($M) % Portfolio % Portfolio Chg
Deutsche Asset Management (UK), LTD P United Kingdom Index Very High 20,649.1 255.9 -208.1 1.2% -44.9%
Erste Sparinvest Kapitalanlage GmbH Austria Growth Medium 3,222.2 309.2 -187.8 9.6% -37.8%
Universal-Investment-Gesellschaft mbH Germany Growth Medium 3,095.7 70.5 -178.6 2.3% -71.7%
BNP Paribas Asset Management Netherlands N.V. Netherlands Value High 4,887.3 683.2 -165.9 14.0% -19.5%
CBRE Clarion Securities, LLC United States Specialty High 12,629.3 1,075.8 -145.7 8.5% -11.9%
AXA Investment Managers Paris S.A. France Growth Low 17,577.5 1,722.6 -140.4 9.8% -7.5%
Fidelity Management & Research Company United States Growth Low 938,590.5 802.9 -136.8 0.1% -14.6%
Standard Life Investments, LTD (U.K.) United Kingdom Growth Medium 72,179.5 626.1 -131.1 0.9% -17.3%
Deka Investment GmbH Germany Value Low 51,139.0 513.2 -101.3 1.0% -16.5%
State Street Global Advisors, LTD P United Kingdom Index Low 108,405.4 709.2 -87.5 0.7% -11.0%
Deutsche Asset Management Investment GmbH Germany Value Low 121,866.5 817.1 -79.8 0.7% -8.9%
Ilmarinen Mutual Pension Insurance Company Finland Yield Low 13,746.1 372.1 -77.4 2.7% -17.2%
Northern Cross, LLC United States Value Low 29,796.6 486.4 -77.1 1.6% -13.7%
GIC Asset Management Pte., LTD SWF Singapore Value Low 76,114.5 1,057.9 -76.2 1.4% -6.7%
CPV/CAP Pensionskasse Coop Switzerland Value Unknown 73.7 29.4 -69.9 39.9% -70.4%
Fidelity International Limited - FIL Investment Management GmbHGermany Growth Medium 2,058.9 70.2 -62.4 3.4% -47.1%
Morgan Stanley Investment Management Inc. United States Growth Medium 72,081.0 742.1 -57.6 1.0% -7.2%
Versorgungsanstalt des Bundes und der Länder Germany Growth Unknown 557.8 382.2 -54.4 68.5% -12.5%
OppenheimerFunds, Inc United States Growth Medium 167,882.0 1.9 -40.7 0.0% -95.6%
Varma Mutual Pension Insurance Company Finland Growth Low 14,981.6 392.1 -39.6 2.6% -9.2%
Includes Investors with EUM greater than $100M. 11,119.9 -2,118.3
SWF - Sovereign Wealth Fund; HF - Hedge Fund/Alternative; P - Passive Investor
TOP
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Flow of Funds: WEU Real Estate
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