Chart of the Day: Hedge funds’ changing investor base

The half-yearly report on possible systemic risk created by hedge funds was published last week, and identifies the sources of investment in the industry. It found that pension funds have increased their share, representing 23% of the investor base in March 2012, up from 17% a year earlier [see chart].

As reported by Harriet Agnew, High-net-worth individuals and family offices, meanwhile, decreased their share of the investor base to 12% from 15% over the same period. The regulator collected data on funds with a total of more than $380bn under management, which represents just under a fifth of industry assets.

The results chime with other surveys, and reflect an increasing institutionalisation of the hedge fund industry over the past decade which has gathered pace since the financial crisis. According to Deutsche Bank, institutions – including pension funds, sovereign wealth funds, insurance companies and endowments – now account for approximately two thirds of hedge fund assets, compared with less than one fifth in 2003.

READ MORE

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s