Research

Asset Flows Update

Introduction

The Eurekahedge Hedge Fund Index posted its first losing month in 2015, down 1.19% in June1 outperforming underlying markets as represented by the MSCI World Index2 which was down 2.88% during the month. Despite a strong start to the year, events in Europe and China have dented hedge fund returns in June, with overall 1H 2015 returns coming in at 3.37%, comparable to the 3.11% gain seen over the same period last year.

Final asset flow figures for May revealed that managers reported performance-based gains of US$10.5 billion while recording net asset inflows of US$16.07 billion. Preliminary data for June shows that managers have posted performance-based losses of US$18.9 billion while recording net inflows of US$3.6 billion, bringing the current assets under management (AUM) of the global hedge fund industry to a total of US$2.22 trillion – almost US$86.2 billion higher than the record US$2.14 trillion reported last year.

Figure 1: Summary monthly asset flow data since January 2012
 

Key highlights for June 2015:

  • Hedge fund assets under management have increased by US$93 billion in the first six months of 2015, with roughly US$52 billion coming from performance driven gains and US$41 billion from new investor allocations.
  • Despite losses of 1.13% in June, European mandates continue to see resurgence in investor allocations. European hedge funds have recorded US$12.5 billion in new investor allocations for Q2 2015 following net outflows of US$17.1 billion over the three preceding quarters.
  • CTA/managed futures funds have grown their asset base by 10.86% in 2015 largely on the back of strong capital inflows totalling US$20 billion - its highest 1H investor allocation since 2008.
  • Asia ex-Japan mandated hedge funds lost 1.58% in June and recorded US$1 billion worth of performance-based losses in the worst month for regional managers since the taper tantrum of 2013.
  • North American managers lead in terms of year-to-date net investor inflows recording US$24.9 billion in new allocations, about two-thirds the level seen for the same period in 1H 2014.

The full article is available in The Eurekahedge Report accessible to paying subscribers only.

Subscribers may continue to login as usual to download the full report and non-subscribers may email database@eurekahedge.com to enquire on how to obtain the full research report.


Footnote
1 Based on 53.04% of funds which have reported June 2015 returns as at 15 July 2015
2 MSCI AC World Index (Local)
 
Chat