“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 $100 billion invested in alternatives and in particular is undertaking a great deal of research into this area.” Alexander Mearns, CEO of Eurekahedge, said. “The absolute return fund industry is now back at $2 trillion and while it is much smaller than the $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 Mizuho-Eurekahedge Index to be the leading hedge fund index benchmark for investors worldwide.”
The new 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. This global index will draw on both the Mizuho and Eurekahedge brands in an effort to further establish the presence of both entities in the market and raise their recognition in new investment sectors.
In March 2011, Mizuho Corporate Bank, Ltd. (“Mizuho”) acquired a 95% stake in Eurekahedge. Along with Eurekahedge in Singapore, Mizuho also covers alternatives through Mizuho Global Alternatives Investments, Ltd. (MGAI) in Tokyo and Mizuho Alternative Investments, LLC (MAI) in New York.
The indices will be available in October 2011 with September performance numbers and data going back to January 2005.
Editing by Alex Akesson
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