Research

Asset Flows Update

Introduction

The Eurekahedge Hedge Fund Index gained 0.73% in August1 while underlying markets as represented by the MSCI World Index2, were up 0.15% over the same period. Among regional mandates, Latin American managers led the table, up 3.26% during the month followed by Asia ex-Japan managers who were up 1.50%. Across strategies, CTA/managed futures hedge funds led the table with gains of 1.24% followed by macro hedge funds which were up 1.04%.

Final asset flow figures for July 2017 revealed that managers reported performance-based gains of US$16.5 billion while recording net asset inflows of US$11.6 billion. Preliminary data for August shows that managers have posted performance-based gains of US$9.7 billion while recording net inflows of US$4.1 billion, bringing the current assets under management (AUM) of the global hedge fund industry to a total of US$2.37 trillion.

Figure 1a: Summary monthly asset flow data since January 2012
 

 

Key highlights for August 2017:

  • Hedge funds were up 5.12% year-to-date, registering performance-based gains of US$58.5 billion while seeing net asset inflows of US$81.9 billion as of 2017 year-to-date. Total hedge fund assets grew by US$140.45 billion over the past eight months with the industry’s total assets currently standing at US$2.37 trillion.
  • In what is turning out to be the best year in terms of investor allocations since 2013, arbitrage, long/short equities and CTA/managed future strategies led in terms of net flows attracting with US$14.6 billion, US$13.7 billion and US$12.6 billion respectively as of 2017 year-to-date.
  • Across regional mandates, North American and European mandates combined have attracted US$72.5 billion in investor flows this year, following redemptions of US$49.7 billion in 2016.
  • Smaller funds managing assets in the range of US$100 million to US$500 million have raised almost US$26 billion this year, while the billion dollar club has accounted for US$46 billion in inflows as investor appetite for hedge funds continues to improve.
  • Asian hedge fund managers outperformed their global peers in 2017 and have grown their asset base by US$13.6 billion this year, the strongest showing since 2013. On a year-to-date basis, Asia ex-Japan managers were up 14.02% with underlying Greater China and Indian managers up 19.25% and 20.92% respectively. Japan focused funds were up 6.28% over the same period.
  • Hong Kong-based Asian hedge funds led the table up 13.41% among key Asian hedge fund centers whilst Singapore and Japan-based Asian hedge funds are also in positive territory, up 9.59% and 5.24% respectively for the year. More on this in the 2017 Key Trends in Asian Hedge Funds report.

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 48.42% of funds which have reported August 2017 returns as at 13 September 2017
2 MSCI AC World Index (Local)
 
Chat