Saturday, 29 April 2017
Last updated 9 hours ago
May 4 2009 | 12:01pm ET
Although Australian hedge funds were still reporting net outflows in March, it looks like December was the peak of redemptions for managers down under, according to an industry watchdog group.
Funds with offshore investors were hardest hit towards the end of 2008 as redemptions were based more on the investors' own liquidity and risk issues than on the underlying manager's performance, according to Australian Fund Monitors.
The group said investors are still facing further liquidity issues in isolated cases this year - with some of the best performing managers over the course of the past year receiving redemptions from liquidity stressed investors.
However, against the backdrop of withdrawals are signs that the industry is turning the corner. For example, Macquarie Bank's MQ Asia fund is reporting net inflows in March following a stretch of outflows in the second half of 2008, and other funds are reporting positive signs that investors are returning from the sidelines, according to the group.
“AFM are also noticing an increase in site visits and interest from offshore investors from both Asia, Europe and the U.S.,” it said.