Barclays exec: Asian hedge funds to see inflows increase

27 May 2010

A Barclays executive has forecast that hedge funds based in Asia are to record dramatic increases in their inflows in the next few years.

Andrea Gentilini, head of strategic consulting at Barclays Capital's prime services unit, predicted that the hedge funds would bring in around $8 billion by this year and could expect to double that figure by 2013.

It was stated that the return of US and European investors to the region, coupled with lighter regulation of the industry in Asia, will bring about such increases, reports Bloomberg.

"If you conducted a high-level analysis of the major macroeconomic forces across the globe, you'd soon realize that the only growth story that is both visible and understandable is taking place throughout Asia," the Barclays consultant said.

However, the forecast contradicts comments made earlier this month by Peter Douglas, the principal of wealth management at investment advisory firm GFIA Pte.

He said that the average assets of a hedge fund launched in 2009 in Asia stand at $40 million, half the amount of those set up in 2007.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development