Asset Flows Update for the Month of May 2013

June 2013

Introduction Hedge funds posted marginally positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge 1 Fund Index was up 0.32% during the month as some risk aversion returned to the markets leading to mid-month trend 2 reversals. The MSCI World Index was down by 0.45% during the month. Total assets under management (AUM) increased by US$3.1 billion during May, bringing the size of the industry to US$1.88 trillion. Impact of performance on total assets was slightly negative in May as managers lost US$1.5 billion over the course of the month. On the other hand net flows were positive for the fifth month running with US$4.6 billion in net allocations. Figure 1: Summary monthly asset flow data since January 2011
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Total assets in US$ billion

1800

20

0 1600 (20)

1400 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 Performance-based growth Source: Eurekahedge Net asset flows

(40) May-13 Total assets

Key highlights for May 2013: Hedge funds witnessed 5 consecutive month of net allocations & 7 consecutive month of positive returns up 4% May year-to-date Net positive asset flows for 2013 currently stand at US$56.9 billion - total size of the industry reaches US$1.88 trillion More than 80% of Asian hedge funds remain in positive territory May year-to-date
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Based on 58.40% of funds which have reported May 2013 returns as at 14 June 2013 The MSCI AC World Index All Core USD

Asset flow in US$ bilioni