Hedge funds posted positive returns in April continuing their consecutive sixth month streak. The Eurekahedge Hedge Fund Index was up 0.87% during the month as most markets trended upwards. The MSCI World Index gained 2.02% in April.

The European hedge fund industry has witnessed significant trends over the last 13 years, starting with a period of strong growth, a broad-based decline in the industry and a recovery phase. In 2000 there were less than 500 European hedge funds with total assets under management (AUM) of US$39 billion. Over the next seven years the total number of funds increased tremendously to cross the 3,000 mark while AUM increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007.

Eurekahedge talks to Hans-Olov Bornemann, Head of Global Quant Team at SEB Asset Selection Fund.

Bermuda may not be the first place one thinks of for offshore investment funds, but it ought to be. Bermuda’s global pre-eminence in the reinsurance industry is undisputed - it is currently home to 1,291 insurance companies which generated a gross premium of US$107.7 billion as at the end of 2010. Recent figures show that Bermuda is the pioneer offshore hedge funds jurisdiction. In fact, Bermuda’s registered funds have increased from US$159.51 billion of total net asset value in 2011 to US$185.39 billion in Q3 of 2012.

The European Directive on Alternative Investment Fund Managers (AIFMD) came into force on 21 July 2011. It is now required to be implemented into the national laws of the 27 Member States of the European Union (EU) and the 3 additional European Economic Area (EEA) states (Norway, Iceland and Liechtenstein) by 22 July 2013. The European Commission published on 19 December 2012 a delegated regulation, supplementing AIFMD, which sets out further detail around certain provisions in AIFMD (Level 2 Regulation) which is directly applicable in the Member States without the need for implementation.

One of the primary stated aims of the Alternative Investment Fund Managers Directive (AIFMD) was to increase investor protection. A key step in this regard was the imposition of a standard requirement that alternative investment funds managers (AIFMs) falling within the scope of the AIFMD and marketing their funds into Europe ensure each relevant alternative investment fund (AIF) which they manage appoints a third party depositary with respect to its underlying assets.

Singapore has already developed an enviable reputation as a global fund management hub. Yeo Wico and Suhaimi Zainul-Abidin discuss the new regulatory and tax approaches being adopted to encourage the growth of Islamic funds in the country.