June 2010 Asset Flows Update

Eurekahedge

Introduction

Hedge fund returns were slightly negative in June as world markets continued to slide for the second
straight month. The Eurekahedge Hedge Funds Index was down 0.59% in the month that saw high
volatility in all asset classes. However, the trend of outperforming the underlying markets persisted as
the MSCI World Index declined 3.56% during the month.

June also witnessed marginally positive net flows of US$0.4 billion in addition to performance-based
gains of US$0.2 billion. However, following the heavy losses in May, the total size of the industry is now
back down to US$1.51 billion as at end-June.

The year-to-date performance figure for hedge funds slipped into negative territory in June, with the
Eurekahedge Hedge Fund Index down 0.12% YTD. However, this still represents an outperformance to
the global markets which are down 10.88% June YTD (MSCI World Index).

Figure 1 shows the monthly asset flows across the hedge fund industry since December 2008.

Figure 1: Summary Monthly Asset Flow Data since December 2008

Below are the highlights for the month of June:

 Hedge funds remained flat June year-to-date (-0.12%) while outperforming global markets by
more than 10.5%.

 Strong launch activity was seen in 1H2010 – more than 500 launches globally.

 UCITS III hedge fund assets crossed US$100 billion during 1H2010.

 SRI funds outperformed global markets in the last 12 months (1.33%) as well as 2010 YTD
(4.21%).

In terms of regional mandates, European managers attracted the most capital…

1 | July 2010 www.eurekahedge.com

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