Expert Investor - Fund Selector Asset Class Report October 2017 FSACR_Oct17_BOOK.v2 | Page 9

Other strategies Buying/selling intentions Increase Hold Decrease Not use These tables show the forward-looking buying and selling intentions of European fund selectors and asset allocators towards various alternative strategies. – One in five fund selectors want to buy more of either commodities or property funds and only half as many are looking to reduce their weightings. Net flows into the broad asset classes have been consistently positive throughout 2017 albeit a fraction of what index-trackers and multi-asset funds have been attracting. – We began gathering sentiments towards multi-asset funds at the start of 2017 and demand has been stable. A little over half of respondents use the asset class and most expect to keep their allocations unchanged. – As for index-trackers, buyers have consistently outnumbered sellers and there are some interesting developments in fund flows; read about these in the next two pages. Commodities Index-tracking products 80 80 60 60 40 40 20 20 0 Q3 ’15 Q3 ’16 Q3 ’17 100 Property 0 80 60 60 40 40 20 20 Q2 ’16 Q3 ’15 Q3 ’16 Q3 ’17 100 Multi-asset long-only 80 0 Q1 ’15 Q3 Q4 Q1 ’17 Q2 Q3 0 Q1 ’17 Q2 ’17 Q3 ’17 Sponsored by T. Rowe Price | 9