'Hedge fund assets have quintupled but other assets only doubled'

Mumbai, Apr 12 (UNI) The hedge fund assets have quintupled in the past eight years, while the world's stock of other assets including bank deposits has only doubled, Managed Funds Association (MFA) president John Gaine said today during a public panel discussion held as part the ongoing International Organisation of Securities Commissions (IOSCO) here.

The hedge funds account for a third of the turnover in US equities and are counter parties to most of the more exotic financial instrument transactions.

''While the MFA estimates a total industry size as comprised of 13,000 single funds with about one-third of the figure as managers, less than two per cent of these manage more than 80 per cent of all hedge fund assets,'' said Mr Gaine.

Mr Gaine also pointed out that at a time when the hedge funds remain the quintessential global product in every jurisdiction, more input from the private sector might be useful in setting IOSCO priorities and in developing the regulations that takes timely account of the market developments.

''MFA has supported the move by the US Securities and Exchange Commission to limit access to private placement of hedge funds to HNIs and not favour the retailization of such funds since that would adversly affect the ability of hedge funds to execute multiple trading strategies and to serve as diversifiers cum efficiency providers in the general economy,'' he added.

UNI