Inflows into larger managers propel Asia-Pacific assets to over $144bn

Fri Sep 21, 2012

Asia-Pacific industry assets grew by 2.5% to touch $144.09 billion in the first half of 2012, a refreshingly positive result following a difficult period of attrition and weak performance. Other key trends include the growing prominence of multi-strategy funds in Asia and the further migration of the assets to the East, with close to 78% of regional assets now managed from within the region

Contrary to expectations, the Asian hedge fund industry showed a marginal expansion in asset terms in 1H 2012, despite a significantly challenging environment that saw near flat performance and some of the most high-profile withdrawals from the business (such as long-running stalwarts like Penta and Tiger Asia returning money to investors), according to the latest AsiaHedge asset survey.

Neutralising the impact of the shutdowns and a lack of outlier returns was the entrance of significant new players that attracted considerable capital (such as Tybourne and ARCM) and the significant asset growth experienced by some of the larger existing managers, such as Hillhouse and Segantii. Investors, on their part, also continued to hold off major redemption decisions ahead of the US elections and China re-balancing, resulting in minimal net redemptions from the industry – so far at least.

The cumulative effect of these factors was a surprisingly positive asset figure...

ISSN: 2151-1845 / CDC10004H

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