eVestment: Hedge fund AUM at all-time high

Hedge fund industry assets under management continue to hit record highs, driven in September by strong performance, according to eVestment's just-released September and 3Q 2017 Hedge Fund Asset Flows Report. Investor redemptions of $2.5 billion in September were offset by performance gains, bringing overall industry AUM to $3.205 trillion. For 3Q 2017, overall flows were still positive at $12.51 billion and year to date AUM is up $35.08 billion.
Some other interesting points from the report include:

Asian managers lead, ninth month of gains

Hedge funds were up 0.40% during the month of September, while underlying markets, as represented by the MSCI AC World Index (Local), gained 2.17% over the same period, according to the latest Eurekahedge Index Flash Update. Most regional mandates ended the month in the green, with Japan dedicated hedge funds in the lead as tensions on the Korean peninsula receded and the Japanese yen depreciated relative to major currency pairs.

Across strategies, equity long bias hedge funds posted yet another month of gains and were up 12.55% for the year.

3 sectors fixed income investors should consider

Fixed income investors should look to Corporate High Yield bonds, Emerging Market Debt (EMD) and Alternative Credit as potential solutions to counter rising interest rates when Western governments normalise their monetary policies, says Pieter Jansen, Senior Strategist at NN Investment Partners, who believe these assets offer investors attractive returns in either of the two economic scenarios going forwards.

Scenario 1 entails global growth breaking through the 3.5% level that has acted like a ceiling over the last six years.

SG CTA Indices: Performance dips in September

Societe Generale Prime Services has announced the September 2017 performance data for its SG CTA indices. Following steady gains in July and August, CTAs faced difficult conditions in September as all the indices moved into negative territory. It has been a particularly challenging month for trend-followers as the SG Trend Index underperformed others, down -3.06%, compared to the Short-Term Traders Index (STTI) which was flat for the month -0.14%.

Global investor​ confidence declines in September

State Street Global Exchange has released the results of the State Street Investor Confidence Index (ICI) for September 2017. The index decreased to 104.4, down 2.4 points from August’s revised reading of 106.8. The decline in sentiment was driven by a 6.3 point drop in the North American ICI to 105.6. By contrast, the European ICI rose by 4.7 points to 93.7 along with the 3.7 increase in the Asian ICI to 102.8.


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