The Eurekahedge Report – November 2013

The benchmark Eurekahedge Hedge Fund Index was up 1.41%¹ in October, lagging behind the MSCI World Index² which gained 3.75% over the month. Total assets under management increased by US$19.71 billion during the month and the sector witnessed net positive asset flows of US$1.16 billion, while also registering performance-based gains of US$18.55 billion. The total size of the industry now stands at US$1.97 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

October 2013	US$ billion
Allocation (Inflows)	12.21
Redemption (Outflows)	-11.05
Net Asset Flows	1.16
Positive Performance (Growth)	19.54
Negative Performance (Decline)	-0.09
Total	18.55
Overall Total	19.71

 To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds raised US$100 billion through asset flows in 2013

Hedge funds delivered healthy gains in October as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.40% during the month, while global stock indices outperformed as the MSCI World Index gained 3.75% in October.

Key takeaways for the month of October 2013:

• Hedge funds raised US$100 billion through asset flows in 2013 as at end-October
• Total assets in the hedge fund industry stand at US$1.91 trillion, set to cross the highest level on record by end-2013
• Assets in Greater China focused funds reached US$12.9 billion, the highest level on record
• Asia ex-Japan hedge funds have outperformed the underlying markets by more than 5% October year-to-date
• Japanese hedge funds remained ahead of other regions, up 22.68% as at end-October

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report – October 2013

The benchmark Eurekahedge Hedge Fund Index was up 1.18%¹ in September, lagging behind the MSCI World Index² which gained 3.87% over the month. Total assets under management increased by US$4.24 billion during the month. The sector witnessed net positive asset flows of US$1.23 billion while also registering performance-based gains of US$3.01 billion. The total size of the industry now stands at US$ 1.91 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

September 2013	US$ billion
Allocation (Inflows)	5.04
Redemption (Outflows)	-3.81
Net Asset Flows	1.23
Positive Performance (Growth)	3.91
Negative Performance (Decline)	-0.90
Total	3.01
Overall Total	4.24

 To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds back in the black with 1.05% gain, on upward trend

Hedge funds were back in the black in September as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.05% while global stock indices outperformed as the MSCI World Indexgained 3.87% in September.

Key takeaways for the month of September 2013:

• Total assets in the hedge fund industry stand at US$1.91 trillion, set to cross the highest level on record by end-2013
• Assets in long/short equity hedge funds crossed the US$600 billion mark for the first time since 2008
• Asia ex-Japan hedge funds have outperformed the underlying markets by more than 7% September year-to-date
• Greater China focused hedge funds witnessed 3 months of positive returns, up 6.22% in the third quarter of 2013
• Distressed debt investing remains the best performing strategy in 2013, up 11.25% September year-to-date
• Japanese hedge funds remained ahead of other regions, up 21.25% September year-to-date

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report – September 2013

The benchmark Eurekahedge Hedge Fund Index was down 0.23%¹ in August while the MSCI World Index declined 2.26%² over the month. Total assets under management decreased by US$6.3 billion during the month and the sector witnessed net negative asset flows of US$1.62 billion while also posting losses of US$4.67 billion from performance. The total size of the industry now stands at US$1.90 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

August 2013	US$ billion
Allocation (Inflows)	8.51
Redemption (Outflows)	-10.14
Net Asset Flows	-1.62
Positive Performance (Growth)	21.90
Negative Performance (Decline)	-26.58
Total	-4.67
Overall Total	-6.30

 To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds witnessed mixed returns - down 0.32% amid uncertainty in global markets

Hedge funds witnessed slightly negative returns in August amid increased risk aversion in global markets during the month. The Eurekahedge Hedge Fund Index was down 0.32% during the month, outperforming global stock indices as the MSCI World Index declined by 2.26% in August.

Key takeaways for the month of August 2013:

• Global hedge fund AUM declined by more than US$6 billion in August
• Launch activity picks up pace in 2013 with more than 500 funds launched globally July year-to-date
• Hedge funds across major regions outperformed underlying markets in August
• Distressed debt investing remains the best performing strategy in 2013, up 10% as at end-August
• Japanese hedge funds outperformed the Nikkei 225 for the fourth consecutive month, up 18.82% year-to-date
• At 2013 year-to-date, Eurekahedge is tracking more than 600 funds that have delivered over 15% and 200 funds that are up more than 30%

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report – August 2013

The benchmark Eurekahedge Hedge Fund Index gained 1.02%¹ in July while the MSCI World Index was up 4.41%² over the month. Total assets under management increased by nearly US$15 billion during the month – the sector witnessed net positive asset flows of US$4.98 billion while gaining US$10.07 billion through performance-based gains. The total size of the industry now stands at US$1.89 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

July 2013	US$ billion
Allocation (Inflows)	20.76
Redemption (Outflows)	15.78
Net Asset Flows	4.98
Positive Performance (Growth)	12.81
Negative Performance (Decline)	2.74
Total	10.07
Overall Total	15.05

 To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds bounce back from lull to deliver winning returns in July

Hedge funds returned to their winning ways in July as global markets bounced back from a retreat in June. The Eurekahedge Hedge Fund Index was up 0.90% during the month, the MSCI World Index was up by 4.83% in July.

Key takeaways for the month of July 2013:

• Hedge funds up by 0.90% in July, with 70% of reporting funds delivering positive returns during the month
• Funds of hedge funds outperformed single manager funds in July, up 0.98% and remain ahead year-to-date
•  Japanese hedge funds outperformed the Nikkei 225 for the third consecutive month, up 18.63% as at end-July 2013
• Hedge funds witnessed positive asset flows in July; net allocations for the year currently stand at US$75 billion
• As at end-July 2013, Eurekahedge is currently tracking more than 550 funds that have delivered over 15%, 300 funds that are up more than 20% and 100 funds up more than 30%

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report – July 2013

The benchmark Eurekahedge Hedge Fund index declined 0.69%¹in June while the MSCI World Index was down 3.10%² over the month. Total assets under management were down by US$20.94 billion during June – the sector witnessed net negative asset flows of US$2.12 billion while losing US$18.82 billion through performance based losses. The total size of the industry now stands at US$1.89 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

June 2013	US$ billion
Allocation (Inflows)	8.83
Redemption (Outflows)	-10.95
Net Asset Flows	-2.12
Positive Performance (Growth)	7.42
Negative Performance (Decline)	-26.24
Total	-18.82
Overall Total	-20.94

 To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds end 7 month winning streak, down 1.47%

Hedge funds recorded negative returns in June ending their seven month winning run, as global markets witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.47%¹ in June, outperforming the MSCI World Index² which lost by 3.10% during the month.

Key takeaways for the month of June 2013:

• Hedge funds witnessed first losing month of the year, down 1.47% in June 2013
• Japanese hedge funds outperformed underlying stocks, up by 0.15% in June and 17.38% year-to-date
• Launch activity picks up with more than 300 funds launched so far in the year
• Eurekahedge is currently tracking more than 500 funds that have delivered over 15% year-to-date and 250 funds that are up by over 20% year-to-date
• Distressed debt funds end 11-month winning run after gaining 21% from June 2012 to May 2013
• CTA/managed futures funds in negative territory for the year, down 1.35% year-to-date

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report - June 2013

The benchmark Eurekahedge Hedge Fund Index was up 0.40%¹ in May while the MSCI World Index was down 0.45%² over the month. Total assets under management were up by US$3.06 billion during May – the sector witnessed net positive asset flows of US$4.59 billion while losing US$1.53 billion through performance-based losses. The total size of the industry now stands at US$1.88 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

May 2013	US$ billion
Allocation (Inflows)	35.85
Redemption (Outflows)	-31.26
Net Asset Flows	4.59
Positive Performance (Growth)	5.02
Negative Performance (Decline)	-6.55
Total	-1.53
Overall Total	3.06

To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds attract US$50 billion in five months

Hedge funds attract US$50 billion in five months
Hedge funds witnessed the seventh consecutive month of positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.20%¹ during the month, while the MSCI World Index² was down 0.45% in May.
Key takeaways for the month of May 2013:

• Hedge funds witnessed the 5th consecutive month of net allocations and 7th consecutive month of positive returns - up 3.89% year-to-date
• Total asset flows for 2013 currently stand at US$50 billion with total size of the industry at US$1.87 trillion
• Asia ex-Japan hedge funds outperformed underlying markets for three consecutive months - up 3.26% since end-February
• Eurekahedge is currently tracking almost 500 funds that have delivered more than 15% year-to-date and 250 funds that are up by over 20% year-to-date
• Distressed debt funds extended winning streak to 11 consecutive months, gaining 21% since end-June 2012
• CTA/managed futures funds declined by 1.69% in May 2013

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.

The Eurekahedge Report - May 2013

Hedge funds posted positive returns in April, amid divergent trends in global markets. The benchmark Eurekahedge Hedge Fund index was up 0.87%¹ while the MSCI World Index was up 2.02%² over the month. Total assets under management were up by US$19.87 billion during April – the sector witnessed net positive asset flows of US$7.13 billion while witnessing profits of US$12.75 billion through performance-based gains. The total size of the industry now stands at US$1.87 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

April 2013	US$ billion
Allocation (Inflows)	18.78
Redemption (Outflows)	-11.65
Net Asset Flows	7.13
Positive Performance (Growth)	14.91
Negative Performance (Decline)	-2.16
Total	12.75
Overall Total	19.87

To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Eurekahedge launches new insurance linked securities index

SINGAPORE (March 01, 2012) - Eurekahedge, a market leading alternative fund data provider, announced today that they have launched a new hedge fund index focusing on insurance linked securities, in partnership with ILS Advisers. The new index is named the ‘Eurekahedge ILS Advisers Index’. The index can be found at: www.eurekahedge.com/indices/ils_advisers_index.asp

Increasing amounts of government intervention in worldwide financial markets has created an unprecedented correlation amongst asset classes, increased volatility and a tougher environment for skill based managers to generate superior risk adjusted returns. In a very real sense the pool of hedge funds that can perform in today’s environment has diminished. Insurance linked securities funds on the other hand are bucking the trend enabling fund managers to preserve capital while producing month-on-month absolute returns.

Robust Returns
Investing US$1 million in the following 3 indices at the end of December 2006 would have yielded the following gains over the last five years:

Index	Return
Eurekahedge ILS Advisers Index	US$1,397,115
Mizuho-Eurekahedge Index - USD	US$1,241,638
MSCI All Countries World Index (local)	US$ 777,413

Downside protection
Equity markets were severely affected during the financial crisis between May 2008 and February 2009. The MSCI All Countries World Index fell 46% over this period and has yet to recover. The Mizuho-Eurekahedge Index fell 17% and took almost 2 years to recover. In contrast, ILS funds returned, on average, 1% to their investors.

Even major catastrophes, which have a direct effect on the insurance market, have had a minimal impacted upon the index. The Tōhoku earthquake and tsunami that occurred in Japan, in March 2011 (which could be classed financially as a Lehman-style event for the ILS industry) caused the Eurekahedge ILS Advisers Index to fall 3% - a comparatively nominal amount. Impressively, the index recovered that loss within 6 months.

Uncorrelated returns
Insurance linked securities funds are largely uncorrelated to hedge fund returns and thus provide an attractive avenue of diversification for investors looking for a more balanced portfolio. The Mizuho-Eurekahedge Index and the MSCI All Countries World Index share a strong correlation (R2 of 0.64). The Eurekahedge ILS Advisers Index registers virtually no correlation with the Mizuho-Eurekahedge and MSCI indices (R2 of 0.11 and 0.1 respectively).

Volatility comparisons

About the index
The Eurekahedge ILS Advisers Index as an equally weighted index of hedge funds that explicitly allocate to insurance linked investments and have at least 70% of their portfolio invested in non-life risk. The index was incepted in December 2005 and has returned 52.38% through January 2012. The index has an annualised return of 7.17% and an extremely low volatility, producing one of the highest Sharpe ratios of all of Eurekahedge indices at 2.27.

How insurance linked securities work
Insurance linked securities (ILS) also known as catastrophe or cat bonds are a transfer of insurance risk to the capital markets typically by insurance or reinsurance companies. The performance of ILS depends on the occurence respectively non-occurrence of an insured event. ILS show a low correlation with traditional asset classes and other alternative investment as shown above. ILS are typically not exposed to duration risk or interest rate risk since their return consists of a variable interest rate component plus an insurance premium for the risk assumed. Moreover they protect investors against inflation. Typically the ILS funds diversify their exposure across different perils such as natural catastrophe (wind, earthquake), man made risk and across different geographies US, Europe and Asia.

Notes for editors

Quotes
“Eurekahedge is delighted to be working with ILS Advisers on this new project. We both share the same vision of being at the cutting edge of innovative investment opportunities for sophisticated investors and with the launch of our new index we hope to bring more exposure to this fresh asset class.” said Alexander Mearns, CEO of Eurekahedge.

Mr Mearns goes on to say, “In the current market environment trying to find superior risk adjusted returns is like looking for black cats in a coal mine. Insurance linked securities hedge funds are those cats!”

“The launch of the Eurekahedge ILS Advisers Index shows our commitment, to identify and monitor the best ILS managers globally and bring them to professional investors in Asia”, says Stefan Kräuchi co-founder of ILS Advisers.

“The new index combines the expertise of ILS Advisers in the insurance linked investment space with the know-how, experience and reputation of Eurekahedge as the top index provider in the alternative investment area. A perfect match”, says Stefan Kräuchi, co-founder of ILS Advisers.

“The new index will bring additional interest to an asset class that is still barely known in Asia despite its stellar track record over the last ten years with high yield bond like returns, a volatility of less than high grade corporate bonds and no negative year”, says Stefan Kräuchi.


About ILS Advisers
ILS Advisers was founded in Hong Kong by Stefan K. Kräuchi and Hansrudolf Schmid in 2011 as part of HSZ (Hong Kong) Ltd. an independent asset manager regulated by the SFC. The two founders combine over 40 years of industry and management experience on top level of major financial institutions.

The purpose of ILS Advisers is to develop the Asian market for Insurance Linked Investments. ILS Advisers are strictly an independent investment consultant and not managing nor selling own products.

ILS Advisers identify and monitor the best ILS managers and products globally and bring them to professional investors in Asia. ILS Advisers help clients to understand the asset class, support them in their selection and investment process and provide ongoing services once the investments are made. Target clients are Asian domiciled institutional investors such as Sovereign Wealth Funds (SWF), Pension Funds, Banks, Corporate Treasuries, Family Offices and Fund-of-Funds.

Stefan K. Kräuchi has over 20 years of international experience in the in the asset management industry with UBS, AIG Investments (now PineBridge) and Credit Suisse Group in Zurich, Tokyo and Chicago. In his previous role he was a member of the Executive Board of a large Swiss private bank, where he was in charge of the products and services division with assets under management of over USD 20bn including insurance linked investments of over USD 2bn. Since 2004 he has been instrumental in pioneering and developing products in the ILS space for the Swiss and European market.

Hansrudolf Schmid is the founder and president of HSZ Group. After an education in law he pursued his career in finance, covering investment banking, private banking and investment management, first in New York followed by Zurich and Hong Kong.

Further Information on ILS Advisers can be found at www.ilsadvisers.com


About Eurekahedge
Founded in 2001, Eurekahedge is an independent financial data and research company focusing on alternative investments. Eurekahedge maintains coverage on 26,000 alternative funds globally and its research covers hedge funds, funds of funds, UCITS III hedge funds, private equity funds, Islamic funds, real estate funds, SRI funds and long-only absolute return funds.

In addition to fund data Eurekahedge publishes the world’s largest suite of over 250 alternative investment benchmark indices, and the widely read The Eurekahedge Report, a monthly look at the alternative funds industry’s asset flows, fund performance, macroeconomic trends and league tables.

Eurekahedge has offices in Singapore and New York. Eurekahedge is owned by Mizuho Corporate Bank, Ltd. (“Mizuho”), which owns a 95% stake in the company.

For further information, please contact:
Sultan Arif
Head of Marketing & Communications
sultan@eurekahedge.com
+65 6212 0930

Alexander Mearns
Chief Executive Officer
alex@eurekahedge.com
+65 6212 0925

Eurekahedge Pte Ltd
Level 4, 101C Telok Ayer Street
Singapore
068574
+65 6212 0900
www.eurekahedge.com

Ms. Joey Tang
Media Liaison
Phone: +852 2287 2300
jt@ilsadvisers.com

Stefan K. Kräuchi
Partner
Phone: +852 2287 2303
sk@ilsadvisers.com

ILS Advisers
Unit 605A, 6/F, Tower 2
Lippo Centre, 89 Queensway
Admiralty, Hong Kong
www.ilsadvisers.com

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