September 2011 Asset Flows Update

Eurekahedge September 2011

Introduction The Eurekahedge Hedge Fund Index fell 2.13% during August amid heightened volatility in global markets and increased risk aversion. Despite the negative returns, managers delivered significant outperformance and downturn protection in a highly volatile environment. The MSCI World Index fell 2 7.70% as market sentiment turned bearish, marked by global markets changing directions frequently throughout the month. Hedge funds were able to deliver the 5.57% outperformance against the MSCI World Index, as the sector continued to attract assets, albeit marginally. Total assets under management (AuM) were down by US$1.7 billion with the size of the industry continuing to hover around the US$1.82 trillion mark. Performance-based losses for the month totalled US$3.2 billion but despite the high volatility environment, investors still allocated capital to the hedge fund industry. Managers attracted net positive asset flows of US$1.5 billion bringing the total asset flow for the year to US$120.8 billion. Figure 1: Summary monthly asset flow data since December 2008
1800
1

40 20

Total assets in US$ billion

1600

0 (20)

1400 (40) 1200 (60) (80) 1000
Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 Performance-based growth Net asset flows Total assets

(100)

Source: Eurekahedge

Key highlights for the month of August: • • Hedge funds outperformed global markets by 5.57% in August Macro hedge funds gained 0.19% during the month
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Based on 67.66% of funds which have reported August 2011 returns as at 16 September 2011 MSCI AC World Index USD Currency As represented by MSCI World Index

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Asset Flow in US$ billion
September 2011 | 1

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