Asset Flows Update


The Eurekahedge Hedge Fund Index fell into negative territory this month, down 0.58% in September 20151 , though outperforming underlying markets as represented by the MSCI AC World Index All Core which lost 3.60% during the month. Returns across all regional mandates were mixed as market and macroeconomic themes are starting to shape investor sentiments globally.

Final asset flow figures for August revealed that managers reported performance-based losses of US$28.5 billion while recording net asset inflows of US$14.6 billion. Preliminary data for September shows that managers have posted performance-based losses of US$1.5 billion while recording net outflows of US$0.9 billion, bringing the current assets under management (AUM) of the global hedge fund industry to a total of US$2.23 trillion, with asset growth totalling US$91.0 billion as of September 2015.

Figure 1: Summary monthly asset flow data since January 2012

Key highlights for September 2015:

  • Hedge fund assets under management increased by US$91.0 billion in the first nine months of 2015, with US$69.0 billion of investor inflows accounting for more than half of this gain.
  • On a year-to-date basis, hedge funds are up 0.62%, which compares with a gain of 3.85% seen over the same period last year. 42% of the hedge funds reporting to Eurekahedge have posted negative year-to-date returns, almost 13% higher compared to the same period last year.
  • Asia ex-Japan was the best performing regional mandate during the month - up 0.67%, with Greater China mandated hedge funds gaining 1.26% over the same period. 
  • North American hedge funds posted their fourth consecutive month of losses bringing their year-to-date returns into negative territory, down 1.31%.
  • CTA/managed futures, long/short equity and multi-strategy hedge funds lead in terms of investor inflows recording US$27.5 billion, US$23.1 billion and US$15.81 billion respectively as of September 2015 year-to-date.
  • Among developed market mandates, Australia/New Zealand, Japan and Europe mandated hedge funds lead with gains of 7.37%, 3.42% and 3.17% respectively as of 2015 year-to-date.

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1 Based on 53.18% of funds which have reported September 2015 returns as at 14 October 2015
2 MSCI AC World Index All Core (Local)