South Africa Hedge Fund Index Launched

A new fund index will improve the transparency of the hedge fund market in South Africa. The Bond Exchange of South Africa (BESA) is set to collaborate with Clade Investment Management, a local asset management company. As the first such index in the country, the organizers hope that it will help both investors and fund managers to gauge their performance in what is an increasingly competitive market. Initially, however, only 20 funds are likely to be monitored, as they are the only ones judged to meet the index’s strict criteria, although this number is expected to grow with the development of the industry. The criteria include having at least $4.4 million in investment, whilst still being open to more in the future. There also needs to be a third-party administrator to the fund as a guarantee that the assets have been accurately evaluated say the index regulators. The development could encourage greater investment in South African hedge funds, of which there are now around 100, managing over $2.5 billion of investments.