Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Private wealth flows power hedge funds to breach $2.9trn mark

Private wealth flows power hedge funds to breach $2.9trn mark

Private wealth inflows buoyed the hedge fund sector powering assets to breach the $2.9 trillion mark over the year to June.

Total assets in the hedge sector have risen from $2.7 trillion at the end of 2013. The data from Preqin is based on a survey of more than 100 hedge fund managers conducted in June, which found that 59% of managers with backing from high net worth individuals saw increased inflows from this segment of investors over the first half of the year.

The inflow from high net worth investors has caused the ownership of hedge fund assets by institutional investors to decrease 2% over the first half of the year to 63%.

Around 47% of respondents with retail clients also reported increased inflows from this segment, particularly through Ucits funds. Around 61% of hedge fund managers that run alternative Ucits funds said they had posted net inflows, while 51% noted the same trend in the alternative mutual funds they run.

The growing interest from retail and high net worth clients has led to an expansion of products and structures offered by hedge fund managers, which Preqin anticipates will continue over the coming years.

'Interest from a wider group of investors, particularly those in the private wealth arena and retail clients, is leading to a proliferation of new structures, in particular liquid alternatives, to cater to new markets. This is providing more product options to all hedge fund investors and has been a notable driver in the growth in assets in the hedge fund sector.

'Looking forward to the end of 2014, 77% of the hedge fund managers that participated in our June study stated that they believe industry assets under management will grow further in the second half of the year,' commented Amy Bensted, head of hedge fund products.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter