Asset Flows Update for the Month of April 2013

May 2013

Introduction Hedge funds witnessed another month of positive returns in April amid mixed returns in global markets. The Eurekahedge 1 Hedge Fund Index was up 0.87% during the month, witnessing some trend reversals in the underlying markets. The 2 MSCI World Index gained 2.02% during the month. Total assets under management (AUM) increased by nearly US$20 billion during April, bringing the size of the industry to US$1.87 trillion, the highest level since the financial crisis. Most of the increase in assets was registered through performance as the managers gained US$12.7 billion. The sector also witnessed strong asset flows of US$7.1 billion. Figure 1: Summary monthly asset flow data since January 2011

1800

40

Total assets in US$ billion

20

1600

(20)

1400 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

(40)

Performance-based growth

Net asset flows

Total assets

Source: Eurekahedge

Key highlights for April 2013: Hedge funds gained US$100 billion in four months, assets at highest level since 2008 Assets in North American hedge funds reached historically highest level of US$1.27 trillion Japanese hedge funds witnessed strongest April and 4-months on record returns, gaining 6.63% and 18.55% respectively

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1 2

Based on 56.02% of funds which have reported April 2013 returns as at 15 May 2013 The MSCI AC World Index All Core Local

TH E E U RE K AH E DG E RE P OR T M AY 2 0 1 3

Asset flow in US$ billion