Despite slow growth in hedge fund assets over the past five years, inflows combined with performance during the 12 months to June 30, 2013 increased total industry assets to more than R40 billion.
As at the end of June, the 55 participating asset managers in this year’s survey collectively managed assets exceeding R42.2 billion in locally domiciled hedge funds.
This is the highest level reached, yet it remains a fraction of the size of both local collective investment schemes, with R1.3 trillion, as well as the global hedge fund industry, with the latter having reached R23.7 trillion by the second quarter of 2013.
In the past year, 13 new funds were launched locally, of which seven were from established asset managers that already offer hedge fund products. Newly launched funds housed total assets of R777 million.
Funds of funds continued to support new launches, allocating 60% of the assets in these funds, followed by high-net-worth individuals with 20% of assets.
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