Asia-based hedge fund managers may receive $8 billion this year from inflows, a number that is expected to double by 2013.1 BHA mandate data also show a steady increase in interest in Asia-focused funds.
In the last month, BHA analysts received a total of 43 mandates from investors seeking Asia-focused funds, an average of about 10 per week. While discussing their searches, investors mentioned several preferences that are worth noting. Many institutions were interested in Asia-focused funds that are on the ground and trading in Asian markets. Others were researching emerging managers in addition to established managers. And still others were looking at funds that are both region-specific and country-specific. A wealth advisor in the U.K. expressed an interest in Japan-focused funds.
The main driver for this interest in Asia is lingering concerns about a double-dip recession in the United States and soverign-debt issues in Europe. In addition, Asian countries are the most obvious source for growth. According to the research by the Asian Development Bank, developing Asia’s GDP should rise approximately 7.5 percent this year.2
BHA expects this trend to continue, and it will closely monitor investors’ appetite for Asia-focused funds in the coming quarters.
1 Bloomberg, “Hedge-Fund Inflows to Asian Managers Will Surge, Barclays Says,“ May 27,2010.
2 Reuters.com, “Developing Asia GDP to grow this year: UN,” June 6, 2010, http://www.reuters.com/…
