Asset Flow Updates for the Month of August 2013

September 2013

Introduction Hedge funds posted slightly negative returns in August, amid increasing risk aversion in the markets. The Eurekahedge 1 Hedge Fund Index was down 0.23% during the month as global markets reverted to risk-off mode amid fears of another war in the Middle East and speculation that the US Federal Reserve will slow down its asset purchase program. The 2 MSCI World Index was down by 2.26 % during the month. Total assets under management (AUM) declined by US$6.3 billion during the month, bringing the size of the industry to US$1.90 trillion. Most of the negative impact on total assets came from negative performance in August as managers lost US$4.7 billion over the course of the month. The industry also witnessed net negative asset flows of US$1.62 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 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13

(40) Performance-based growth Net asset flows Total assets

Source: Eurekahedge

Key highlights for August 2013: Global hedge fund AUM declined by US$6.3 billion in August
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Launch activity picked up pace in 2013 with more than 500 funds launched globally July 2013 year-to-date Hedge funds across major regions outperformed underlying markets in August Assets in long/short equity hedge funds crossed the US$600 billion for the first time since 2008

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Based on 45.07% of funds which have reported August 2013 returns as at 12 September 2013 The MSCI AC World Index All Core USD

THE EUREK AHE DGE REP ORT S EPTE MBE R 201 3

Asset flow in US$ billion