London-Based Fund Manager Sets Up Asian Fund Of Hedge Funds In Singapore

by Carla Johnson, Investors Offshore.com

14 September 2004

London-based hedge fund manager KBC Alpha has announced the setting up of an Asian fund of hedge funds in Singapore, the first such fund to be established in the South East Asian city-state, according to Finance Asia.

KBC is the latest European fund manager to establish a physical presence in Asia, reflecting the strong growth in hedge fund demand in the region, and recognising the need to develop bases beyond more established centres such as Japan.

"When we first launched our Japan fund in 2002, there were lots of European based managers focusing on Japan,” observed David Walter, KBC Alpha's director.

“However, as we've expanded our mandate to include Asia-wide funds and as the number of Asian-based hedge funds has grown rapidly, we felt it was important to have a base in the region where we could be in the thick of the action,” he added.

Mr Walters explained that the decision to choose Singapore was motivated by the city’s friendly regulatory environment and its central location.

The majority of the investors in the KBC fund are Japanese institutions and high net worth investors, although a fund structure has also been established to enable access to US-based investors.

KBC Alternative Investment Management group is currently one of Europe’s largest single manager hedge funds, reportedly controlling some US$5 billion in assets.

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