eVestment|HFN Research Release: August 2012 Asset Flows

Date: Monday, October 1, 2012
Author: News Release

The industry had an estimated $21.5 billion of net inflows in August, the second largest monthly gain in 2012.

• Hedge fund assets rose 1.4% in August 2012, an increase of $34.6 billion to $2.555 trillion. Investors flows accounted for an increase of $21.5 billion and performance added an additional $13.1 billion.
• The net inflow in August was the second largest in 2012 behind the $33.7 billion inflows in February and brings YTD 2012 net investor flows up to $31.0 billion. Only 27% of reporting funds experienced net outflows during the month.
• Industry flows had been in a negative trend since performance losses first appeared earlier this year in March. Investor activity resulted in outflows in four of the five months leading up to August’s net inflows.
• Total assets in credit strategies reached a new record high in August of $756.7 billion as investors added an estimated net $14.6 billion and performance increased AUM an additional $9.5 billion.
• The persistent outflows from equity strategies paused in August after the group experienced net investor outflows in twelve of the last thirteen months, and in the last five consecutive months leading up to August. Investors added an estimate $5.8 billion during the month and performance added an additional $7.7 billion to lift total equity hedge fund AUM to $787.0 billion. For the year, investor flows have resulted in an estimated $7.4 billion leaving equity funds.
• Macro & managed futures funds had slight net inflows in August with $940 million more being added than redeemed. The group’s lagging performance in 2012 appears to be impacting relative net investor flows.
• Net flows for emerging market hedge funds were negative, albeit slightly, in August, the third consecutive month and twelfth in the last thirteen in which investors removed more than added. At least through June 2012 the trend has not been the same for institutional flows into traditional EM managed accounts. Traditional EM managers in the eVestment database had net inflows of nearly $80 billion through June 2012.