HK Survey Shows Growth In Hedge Fund Assets

by Mary Swire, Tax-News.com, Hong Kong

14 March 2011

According to a survey report released by the Securities and Futures Commission (SFC), Hong Kong’s hedge fund industry has continued to register a strong growth rate, both in the number of such funds and in their assets under management.

The “Report of the Survey on Hedge Fund Activities of SFC-licensed Managers/Advisers” shows that assets under management or advisory in Hong Kong increased 14% from the time of the last survey in March 2009 to USD63.2bn as at September 30, 2010.

In addition, the number of hedge funds managed by SFC-licensed hedge fund managers in Hong Kong stood at 538 as at September 30, 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 are invested mainly in the Asia Pacific, using equities long/short strategy and multi-strategy. As at end-September, 66.1% of the total assets under management was invested in the Asia Pacific markets. Overseas investors continued to dominate, with over 92% of the investors being from overseas.

“Closer scrutiny of the hedge fund industry is a global trend,” said 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.”

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