RBC Capital Markets says that for the month of November 2006 the RBC Hedge 250 Index had a net return of 1.60 percent. This brings the year-to-date return of the Index to 9.10 percent. These returns are estimated and will be finalised by the middle of next month. The return for October 2006 has been finalised at 1.57 percent.
The RBC Hedge 250 Index is an investable benchmark of the performance of the hedge fund industry. The Index operates in accordance with a unique construction methodology. Comprised of more than 250 actual hedge funds, the RBC Hedge 250 Index is positioned as the industry’s most diversified and representative investable index. The Universe on which the Index is based currently consists of 5,665 hedge funds (excludes funds of hedge funds) with aggregate assets under management of USD1.143 trillion.
Since its inception on 1 July 2005 through the end of October 2006, the RBC Hedge 250 Index has had an annualised net return of 10.15 percent. In comparison, over the same period, other investable indices have averaged 6.90 percent while non-investable indices have averaged 11.80 percent, according to information reported by the sponsors of those indices.