Emerging European equity markets experienced a decline in July, although outperforming regions like Latin America and Asia, as concerns over China's growth impacted commodity prices, leading to Brent crude oil dropping to around $50 a barrel. The Russian equity market faced pressure, with the rouble losing 10% against the US dollar, prompting the central bank to cut interest rates to 11% amid easing inflation. In contrast, Hungary and the Czech Republic saw positive equity market performance supported by improvements in their domestic economies and ties with the Eurozone.

1. Market Overview:
“Emerging European equity markets fell during the month but performed better than other emerging market regions such as Latin
America and Asia. Increased concerns over China’s growth outlook had an adverse impact on commodity prices with Brent crude oil
dropping towards US$50 a barrel. Against such a backdrop, the Russian equity market and rouble came under pressure, with the latter
losing 10% of its value versus the US dollar. Despite a lower exchange rate, Russia’s central bank cut interest rates by 50 basis points to
11% as inflation continues to ease, though the bank signalled a less aggressive path for future interest rate cuts. Sentiment elsewhere in
the region was more upbeat as equity markets in Hungary and Czech Republic rose in value, drawing support from signs of improvement
in their domestic economies as well as their key trading partners in the Eurozone.” - Invesco Perpetual - Emerging European Fund (Jul
2015).
Regional: The main support for the region came from North American investors who, after two consecutive quarters or net selling, made
net increases of $890M. Fidelity Management & Research Company (the second largest buyer in the region) increased its exposure by
$181M or 22%. UK based investors were the second largest net buyers and, after three quarters of withdrawals, made net investments
of $518M. Mondrian Investment Partners, the largest buyer, doubled its exposure to EEU with purchases of $238M (a 121% increase).
Divestment came mainly from Western European investors as they sold $301M from the market – the largest seller from this region was
France’s Amundi Asset Management which reduced its exposure by $53M or 25%.
Flow of Funds: Continental Europe 2Q 2015
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contained herein.
N. America
32.6%
E. Europe
31.5%
UK & Ireland
17.5%
W. Europe
7.5%
Scandinavia
7.0%
Asia
2.7% Other
1.2%
Ownership by Region
-1,500.0
-1,000.0
-500.0
0.0
500.0
1,000.0
1,500.0
N.America
E.Europe
UK&Ireland
W.Europe
Scandinavia
Asia
Other
Net Change ($M Value) by Region
Q3-14
Q4-14
Q1-15
Q2-15

2. Style: Value investors continued to invest in the region with net purchases of $788M; with both GARP and growth investors reversing
their selling in Q1 making net purchases of $191M and $145M respectively. This modest level of support matches results for developed
Europe – WEU equities saw solid support from growth investors in Q2, starting to move from EM to DM stocks as their “risk on” antennae
started working harder. Index investors were relatively flat with an aggregated increase of only $16M in the quarter; however, this
number does hide extensive buying and selling, notably the Lyxor Asset Management S.A. reduction of $299M as well as The Vanguard
Group, Inc.’s increase of $254M.
Sector: healthcare was the only sector seeing net sales. The sectors most favoured were consumer services, basic materials, energy and
financials, with Uralkali by far the most bought stock followed by Tupras Turkiye. Energy has fallen out of favour again in Q3 to date with
the other positive sectors of Q2 continuing to see net support.
Flow of Funds: Continental Europe 2Q 2015
©2015 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information
contained herein.
Agg
Gr./Growth
44.7%
Deep
Val./Value
29.5%
Index
12.7% GARP
7.5%
Specialty
1.7%
Yield
2.5%
Alternative
1.5%
Ownership by Style
-2,000.0
-1,500.0
-1,000.0
-500.0
0.0
500.0
1,000.0
1,500.0
AggGr./Growth
DeepVal./Value
Index
GARP
Specialty
Yield
Alternative
Net Change ($M Value) by Style
Q3-14
Q4-14
Q1-15
Q2-15

3. Flow of Funds: Continental Europe 2Q 2015
©2015 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.
TOP HOLDERS Country Style Turnover
Equity Assets
($M)
Value
($M)
Change
($M)
%
Portfolio
% Portfolio
Chg
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A.Poland Growth Low 7,371.0 7,031.0 -46.6 95.4 -0.7
Norges Bank Investment Management (Norway) Norway Value Low 556,297.1 5,605.5 -4.0 1.0 -0.1
Lazard Asset Management, LLC (U.S.) United States Value Medium 81,229.0 4,001.2 -141.8 4.9 -3.4
Aviva PTEBZ WBK Poland Value Low n/a 3,918.5 20.3 n/a 0.5
OppenheimerFunds, Inc United States Growth Medium 148,015.5 3,778.5 -242.8 2.6 -6.0
Aberdeen Asset Managers, LTD (U.K.) United Kingdom Growth Low 126,386.7 3,359.9 -127.8 2.7 -3.7
J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 102,913.4 3,239.3 99.7 3.1 3.2
MetLife PTES.A. Poland Value Low 2,668.3 2,602.5 -4.1 97.5 -0.2
APG Asset Management N.V. Netherlands Yield Low 148,551.1 2,487.2 -2.3 1.7 -0.1
BlackRock Investment Management (U.K.), LTD United Kingdom Growth Low 334,303.8 2,419.6 -26.8 0.7 -1.1
38,443.2 -476.2
TOP BUYERS Country Style Turnover
Equity Assets
($M)
Value
($M)
Change
($M)
%
Portfolio
% Portfolio
Chg
Mondrian Investment Partners, LTD United Kingdom Value Low 24,794.2 435.2 238.3 1.8 121.0
Fidelity Management & Research Company United States Growth Low 846,268.5 1,013.7 181.0 0.1 21.7
Schroder Investment Management, LTD United Kingdom GARP Medium 122,895.8 1,599.7 136.7 1.3 9.3
Fidelity International Limited -FIL Investment Services (U.K.), LTDUnited Kingdom Growth Medium 92,296.2 479.2 133.6 0.5 38.7
William Blair & Company, LLC (Investment Management)United States Aggressive GrowthMedium 66,165.3 411.3 125.9 0.6 44.1
Harding Loevner, L.P. United States GARP Low 24,335.7 817.9 111.1 3.4 15.7
Van Eck Associates Corporation United States Growth Medium 24,204.9 1,908.3 100.9 7.9 5.6
J.P. Morgan Asset Management (UK), LTD United Kingdom Growth Medium 102,913.4 3,239.3 99.7 3.1 3.2
Capital Research Global Investors (U.S.) United States GARP Low 412,082.8 1,047.0 93.7 0.3 9.8
Somerset Capital Management, LLP United Kingdom Value Medium 3,032.1 504.6 86.9 16.6 20.8
11,456.3 1,307.9
TOP SELLERS Country Style Turnover
Equity Assets
($M)
Value
($M)
Change
($M)
%
Portfolio
% Portfolio
Chg
European Bank for Reconstruction and Development (U.K.)United Kingdom Specialty Low 1,532.7 1,134.4 -312.1 74.0 -21.6
OppenheimerFunds, Inc United States Growth Medium 148,015.5 3,778.5 -242.8 2.6 -6.0
Lazard Asset Management, LLC (U.S.) United States Value Medium 81,229.0 4,001.2 -141.8 4.9 -3.4
Aberdeen Asset Managers, LTD (U.K.) United Kingdom Growth Low 126,386.7 3,359.9 -127.8 2.7 -3.7
MFS Investment Management United States Value Low 255,191.7 370.8 -122.9 0.1 -24.9
Templeton Asset Management, LTD Hong Kong Growth Low 18,886.1 477.3 -103.5 2.5 -17.8
Thornburg Investment Management, Inc. United States GARP Medium 41,752.3 332.2 -73.5 0.8 -18.1
Amundi Asset Management France Value Medium 61,507.8 162.0 -52.6 0.3 -24.5
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A.Poland Growth Low 7,371.0 7,031.0 -46.6 95.4 -0.7
OTKRITIEAsset Management, LTD Russian Federation Growth Unknown 1,707.0 1,707.0 -45.1 100.0 -2.6
Includes Investors with EUMgreater than $100M; Excludes Passive/Index Investors 22,354.4 -1,268.7