Welcome to the Global Macro ETF Strategist Conference Dodd Kittsley, CFA Presenter Head of ETF National Accounts & ETP Strategy, Americas Deutsche Asset & Wealth Management US ETP Asset Growth by Asset Class US ETP growth ($Billion - Annual) 1600 2,000 1,800 1400 1,600 AUM $ billion 1000 1,200 1,000 800 800 600 600 400 400 200 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 0 2014 * 200 Source: Deutsche Bank Research, Sebastian Mercado. As of 6/17/2014. For institutional use only. Not for public viewing or distribution. 0 Number of ETPS 1200 1,400 Others Commodity Fixed income Equity Number of ETPs** Global ETP flows ETP Net Cash Flows YTD ($Billion) 50 40 40.5 30 20 16.9 10.1 10 11.3 0 -0.3 -6.7 -10 Fixed income U.S. Equity Asia Pacific Equity European Equity Source: BlackRock, ETP Landscape: Bloomberg Finance LP. Data as of 5/31/14. For institutional use only. Not for public viewing or distribution. EM Equity Commodities Non-Market-Cap Weighted Equity ETPs - Listed Globally Non-Market-Cap vs. Market Cap Weighted Equity ETPs 2013 Flows (US$bn) Current assets (US$bn) $283bn 15% $65b 26% Market cap weighted Non-Market-cap weighted $182b 74% $1,602bn 85% Source: BlackRock – ETP Research, Bloomberg. Data as of 12/31/13. For institutional use only. Not for public viewing or distribution. US ETF vs. Long Term Mutual Fund Net cash flows ($Billion - Annual) 600 500 400 300 200 100 0 242 0 75 0 122 0 229 210 192 272 242 216 232 129 121 170 1 3 6 241 227 58 64 12 42 34 44 10 43 140 165 -100 196 152 389 224 26 86 105 113 174 214 105 35 -225 -200 Source: Deutsche Bank Research, Sebastian Mercado. As of 6/17/2014. For institutional use only. Not for public viewing or distribution. 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 * -300 CF MF CF ETF ETF Asset Allocations by Portfolio Type Investment approaches Breakdown of year-end 2013 assets by portfolio type 12% 36% 11% U.S equity Global all asset Global equity 12% Global balanced (stock/bond) Other 30% Source: Weinberg, Ari I. “Do Investors Need an ‘ETF Strategist’?”. The Wall Street Journal. 5/6/14. For institutional use only. Not for public viewing or distribution. Top 15 ETF Strategists in the US ETF Managed Portfolio Assets by Firm - December 2013 Name Strategy Assets F-Squared Investments 19,841 Windhaven 18,574 Good Harbor Financial 10,441 Morningstar 5,033 RiverFront Investment 4,238 Innealta Capital 3,292 Churchill Management 2,732 Sage Advisory Services 2,328 Cougar Global 1,371 Clark Capital Mgmt 1,360 Stadion Money Mgmt 1,334 NEW Frontier Mgmt 1,130 Forward Management 1,114 Tactical Allocation Group 1,090 Windham Capital Mgmt 1,048 Source: Morningstar For institutional use only. Not for public viewing or distribution. Thank You! Welcome to the Global Macro ETF Strategist Conference Dodd Kittsley, CFA Presenter Head of ETF National Accounts & ETP Strategy, Americas Deutsche Asset & Wealth Management