Asset Flows Update for the Month of July 2013

August 2013

Introduction Hedge funds were back in the black in July as global markets swung upwards on the back of reassuring announcements 1 from the US and European central banks. The Eurekahedge Hedge Fund Index gained 1.02% during the month bringing 2 its year-to-date return to 3.54%. The MSCI World Index was up by 4.41% during the month. Total assets under management (AUM) increased by nearly US$15 billion during the month, bringing the size of the industry to US$1.89 trillion. Most of the increase in total assets came from positive performance in July as managers gained US$9.9 billion over the course of the month. The industry also witnessed net positive asset flows of US$4.8 billion. Figure 1: Summary monthly asset flow data since January 2011
2000 40
Total assets in US$ billion Asset flow in US$ billion

1800

20

0 1600 (20)

1400 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Performance-based growth Source: Eurekahedge Net asset flows

(40) Total assets

Key highlights for July 2013: Hedge funds up by 1.02% in July, with 70% of reporting funds delivering positive returns during the month Funds of hedge funds outperformed single managers so far in 2013, up 3.83% July 2013 year-to-date versus 3.54% Japanese hedge funds outperformed the Nikkei 225 for the third consecutive month, gaining 18.43% as at endJuly 2013

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Based on 56.93% of funds which have reported July 2013 returns as at 15 August 2013 The MSCI AC World Index All Core Local

THE EUREK AHE DGE REP ORT AUG UST 2013