Published On: Sun, Mar 13th, 2011

2010 Survey Shows Growth in Hedge Fund Assets in Hong Kong

Hong Kong’s hedge fund industry continued to register growth, according to a survey report released today by the Securities and Futures Commission (SFC).

The “Report of the Survey on Hedge Fund Activities of SFC-licensed Managers/Advisers” (Note 1) shows that assets under management or advisory (AUM) in Hong Kong increased 14% from the time of the last survey in March 2009 to US$63.2 billion as at 30 September 2010. Below is a summary of the major findings:

* The number of hedge funds managed by the SFC-licensed hedge fund managers in Hong Kong stood at 538 as at 30 September 2010, similar to that in 2009 and nearly five times the level in 2004, the earliest year covered in similar SFC surveys.
* The hedge funds invested mainly in Asia Pacific using equities long/short strategy and multi-strategy. As at 30 September 2010, 66.1% of the total AUM was invested in the Asia Pacific markets.
* Overseas investors continued to dominate, with 92.1% of the investors being from overseas. In terms of type of investors, fund of funds and other institutional clients, such as banks and insurance companies, were the major types as at 30 September 2010.

“Closer scrutiny of the hedge fund industry is a global trend,” said Mr Martin Wheatley, the SFC’s Chief Executive Officer. “We will continue to maintain a balanced approach to regulation with a view to allowing room for industry development and growth without compromising investor protection.”

The survey was conducted in conjunction with the data collection exercise coordinated by the International Organization of Securities Commissions to collect information concerning global hedge fund activities.

The full survey report is available on the SFC website at www.sfc.hk.

End

Note:

1. The survey requested 302 corporations licensed for hedge fund related activities as at 30 September 2010 to provide information and data on hedge fund activities that they carried out in Hong Kong. The response rate was 98.7%.

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