Research

Asset Flows Update

Introduction

The Eurekahedge Hedge Fund Index ended its four month losing streak, gaining 1.33% in October 20151 . Underlying markets as represented by the MSCI World Index2 were also up this month, gaining 7.22%. Returns across all regional mandates were positive this month as the market rebounded in October.

Final asset flow figures for September revealed that managers reported performance-based losses of US$5.5 billion while recording net asset inflows of US$3.9 billion. Preliminary data for October shows that managers have posted performance-based gains of US$7.2 billion while recording net inflows of US$1.6 billion. The current assets under management (AUM) of the global hedge fund industry now stand at US$2.24 trillion, with asset growth totalling US$100.5 billion as of October 2015.

Figure 1: Summary monthly asset flow data since January 2012
 

Key highlights for October 2015:

  • Hedge funds ended their four month losing streak, up 1.33% in October. Total hedge fund assets under management have grown by US$100.5 billion in 2015 with almost US$75 billion attributed to investor inflows.
  • Asia ex-Japan was the best performing regional mandate for the second consecutive month - up 3.46%, with Greater China mandated hedge funds gaining 5.49% over the same period. On a year-to-date basis, assets for Asia ex-Japan hedge funds have grown by US$8.5 billion.
  • European hedge funds recorded their seventh consecutive month of net investor inflows and have grown their asset base by almost US$40 billion year-to-date, with investor allocations accounting for the bulk of this growth.
  • CTA/managed futures hedge funds have seen their asset base grow by roughly 17% as of 2015 year-to-date, on the back of strong investor inflows totalling almost US$30 billion.
  • Among developed mandates, Australia/New Zealand, Japan and Europe mandated hedge funds lead with gains of 9.62%, 5.84% and 4.16% respectively while North American managers are marginally positive with gains of 0.45% as of 2015 year-to-date.

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Footnote
1 Based on 52.10% of funds which have reported October 2015 returns as at 13 November 2015
2 MSCI AC World Index (Local)
 
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