HK hedge fund survey shows increase in activity
Oct 02, 2009
SFC looks for balance between regulation and growthA survey of Hong Kong’s hedge fund industry conducted by the Securities and Futures Commission (SFC) has revealed a surprising level of resilience among the city’s hedge fund community.
The survey shows the number of hedge funds managed by SFC-licensed hedge fund managers stood at 542 on March 31, 2009, an increase of 11 percent on 2008's total and just shy of five times the level in 2004.
Titled ‘Report of the survey on hedge fund activities of SFC-licensed managers/advisers’, the paper shows the total assets under management totaled $55.3 bn as of March 31, 2009, down from the 2008 level of $90.1 bn but well up on the 2004 total of $9.1 bn.
The report also shows that as of March this year, 59.1 percent of the total assets under management were invested in the Asia-Pacific markets, with around 60 percent of the SFC-licensed hedge fund managers being locally controlled.
The securities regulator further notes that, following the financial crisis, SFC-licensed hedge fund managers adopted a relatively conservative investment approach with around 28.5 percent of total assets held in cash, deposits or money-market instruments.
‘Pressure to tighten hedge fund regulation has been on the rise,’ comments the SFC's CEO Martin Wheatley. ‘However, we will continue to look for a balance between appropriate regulatory controls, ensuring adequate protection for investors, and allowing room for industry development and growth.’
By Clare Harrison