Asset Flows Update for the Month of January 2013

February 2013 Hedge funds started off 2013 in a positive fashion, posting excellent returns on the back of rallying 1 markets globally. The Eurekahedge Hedge Fund Index was up 2.32% during the month, the strongest January return since 2006. Most underlying markets witnessed rallies as the MSCI World 2 Index gained 4.66%. Total assets under management (AUM) increased by US$17.8 billion in January, bringing the size of the industry to US$1.79 trillion. Hedge funds posted performance-based gains of US$13.9 billion as all strategies finished the month in the black. The industry also witnessed net positive asset flows of US$3.9 billion during the month. 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 Source: Eurekahedge Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Performance-based growth Net asset flows

(40) Total assets

Key highlights for January 2013: Hedge funds witnessed the strongest monthly return in 24 months, and the best January return in 7 years up 2.32% in January 2013 Asian hedge funds posted strongest January return on record, up 4.08% Population of Asian hedge funds declined in 2012 with 123 launches and 148 closures total number of funds currently stand at 1291, managing US$127.8 billion

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Based on 49.59% of funds which have reported January 2013 returns as at 15 February 2013 MSCI AC World Index All Core (USD)

Asset flow in US$ billion

February 2013 | 1

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