Research

Asset Flows Update

Introduction

Hedge fund returns were up for the second consecutive month in October amid trend reversals in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.41%1 during the month, bringing its year-to-date return to 5.84%. The MSCI World Index gained 3.75%2 during the month.

Total assets under management (AUM) increased by US$19.7 billion during the month, bringing the size of the industry to US$1.97 trillion. Most of the positive impact on total assets in October came from performance as managers gained US$18.6 billion over the course of the month. The industry also witnessed net positive asset flows of US$1.2 billion.

Figure 1: Summary monthly asset flow data since January 2011

Key highlights for October 2013:

  • Hedge funds raised US$100 billion through asset flows in 2013 as at October year-to-date
     
  • Total assets in the hedge fund industry reached new record high of US$1.97 trillion
     
  • Assets in Greater China focused funds reached US$12.9 billion, the highest level on record
     
  • Asia ex-Japan hedge funds have outperformed the underlying markets by more than 5% October year-to-date
     
  • Japanese hedge funds remained ahead of other regions, up 22.98% as at end-October 2013
     
  • Greater China focused hedge funds up 13.77% October year-to-date
     
  • Distressed debt hedge funds up 13.02% October year-to-date

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Footnote

1Based on 44.58% of funds which have reported October 2013 returns as at 13 November 2013

2 The MSCI AC World Index All Core (Local)

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