Asset Flows Update for the Month of June 2013

July 2013

Introduction Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 1 2012. The Eurekahedge Hedge Fund Index was down 0.69% during the month as global markets reverted to risk-off mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index 2 was down by 3.10 % during the month. Total assets under management (AUM) declined by US$21 billion during the month, bringing the size of the industry to US$1.89 trillion. Most of the negative impact on total assets came from negative performance in June as managers lost US$18.84 billion over the course of the month. The industry also witnessed net negative asset flows of US$2.12 billion during the month. Figure 1: Summary monthly asset flow data since January 2011
2000 40

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 May-13 Performance-based growth Source: Eurekahedge Net asset flows

(40) Total assets

Key highlights for June 2013: Hedge funds end their 7 month winning streak, down 0.69% in June Assets under management declined by US$21 billion in June and currently stand at US$1.89 trillion Launch activity picks up with more than 300 funds launched so far in the year

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Based on 49.70% of funds which have reported June 2013 returns as at 11 July 2013 The MSCI AC World Index All Core USD

THE EUREK AHE DGE REP ORT JULY 2013

Asset flow in US$ billion