Hedge Fund Reader : Asian Hedge Funds quicker to register than their US counterparts

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July 18, 2005

Asian Hedge Funds quicker to register than their US counterparts

According to The Wall Street Journal, investment experts feel that Hedge Fund industry in Asia is stable and upbeat about the future. The total number of Asia Pacific hedge funds stands at 533 and expected to touch 600 mark by the end of the year. The region currently manages over $60 billion of assets. This figure is also likely to increase by 42% to close at $85 billion by the end of 2005. According to the report, Asian investors have been early adopters of hedge fund strategies. And in anticipation of growth and its fallouts incase of unregulation and lack of transparency, the region has already made it mandatory for hedge funds to register themselves with the regulators. Point to note here is that this development precedes the US initiative of mandatory registration of hedge funds managing assets for over 15 US investors and/or handling assets over $25 million from February of next year. Despite the forecasted growth in the region and the major debate over regulation, investment experts do not foresee the need for regulating hedge funds in Asia. Investorsoffshore.com reports:

“In particular, the report suggested, Asian financial regulators caught on to the need for hedge funds to register more quickly than their US counterparts - hedge funds in the United States with more than 15 US clients or with at least $25 million in assets will only be obliged to register with the SEC from February of next year.”

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July 18, 2005 in Regulation | Permalink