Eurekahedge launch new asset weighted ‘Eurekahedge Asset Weighted Index’
SINGAPORE (September 27, 2011) - Eurekahedge, a market leading alternative fund data provider, announced today that they are to launch a suite of new asset weighted indices, under the name ’Eurekahedge Asset Weighted Index’.
This ground breaking suite of indices follow a rigid methodology that will enable investors to easily utilize them for benchmarking their portfolios and building products such as replication indices, passively managed index funds and ETFs. Alongside Eurekahedge’s existing indices this will be one of the largest collections of hedge fund indices in the world.
The indices will be available in October 2011 with September performance numbers and data going back to January 2005.
Notes for editors
“With the current volatility in the markets there is increasing demand for more manageable and predictable return streams. The Japanese pension fund industry is currently reported to have almost US$100 billion invested in alternatives and in particular is undertaking a great deal of research into this area. So with the launch of these indices we have provided the means for financial institutions to create products around these new indices to meet this demand,” said Alexander Mearns, CEO of Eurekahedge.
Mr Mearns goes on to say, “The absolute return fund industry is now back at US$2 trillion and while it is much smaller than the US$30 trillion mutual fund/retail fund industry it has far better annualized returns, less volatility and is growing at a faster rate. In tandem with this growth, we are seeing a strong demand from investors for liquid index linked products such as replication indices and ETFs. In addition we expect the Eurekahedge Asset Weighted Index to be the leading hedge fund index benchmark for investors worldwide.”
How the methodology works
The indices will be asset weighted so that the performance of the larger funds will have a more significant impact on the performance of the index. For example, the Eurekahedge TOP 300 All Strategies Asset Weighted will select the largest 300 funds by assets in much the same way that mainstream equity indices do by market capitalization. In addition historical returns will be frozen, thereby eliminating backfill bias. Small funds will be ejected and funds must meet minimum assets under management (AuM) and track record criteria in order to enter. All indices will have their funds’ underlying local base currencies converted to USD; and 3 special indices with fully hedged forex transactions for major currencies (USD, JPY, EUR).
Examples of indices to be launched
Eurekahedge Global Asset Weighted Index (USD)
Eurekahedge Asia Pacific All Strategies Asset Weighted Index (USD)
Eurekahedge Asia Pacific ex Japan All Strategies Asset Weighted Index (USD)
Eurekahedge Emerging Markets All Strategies Asset Weighted Index (USD)
Eurekahedge TOP 100 All Strategies Asset Weighted Index (USD)
Eurekahedge TOP 300 All Strategies Asset Weighted Index (USD)
Eurekahedge Long Short Equities Asset Weighted Index (USD)
Eurekahedge Multi Strategy Asset Weighted Index (USD)
Eurekahedge Arbitrage Asset Weighted Index (USD)
Eurekahedge CTA / Managed Futures Asset Weighted Index (USD)
Eurekahedge Event Driven Asset Weighted Index (USD)
Eurekahedge Macro Asset Weighted Index (USD)
Founded in 2001, Eurekahedge is an independent financial data and research company focusing on alternative investments. Eurekahedge maintains coverage on approximately 25,000 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 200 alternative investment benchmark indices, and The Eurekahedge Report, a monthly look at the alternative funds industry’s asset flows, fund performance, macroeconomic trends and league tables.
For further information, please contact:
Eurekahedge Pte Ltd
24 Raffles Place, #27-04
+65 6212 0925