Hedge funds could raise up to $70 bln from Asia-Pac investors-Barclays

HONG KONG Tue May 27, 2014 1:02am EDT

HONG KONG May 27 (Reuters) - Hedge funds could raise up to $70 billion from investors in the Asia Pacific region over the next three years, half of it in new capital, Barclays said in a survey on Tuesday.

The survey, polling 50 Asia Pacific-based investors controlling $2 trillion in assets and 20 hedge funds with $450 billion under management, identified Japan and Australia as the main markets for sourcing the funds.

Half the capital could be new assets as Japanese corporate pension funds and Australian superannuation managers grow their allocations to hedge funds. The rest of the capital could come from reallocation of assets already placed with hedge funds.

The survey estimated that investors in Asia Pacific region have allocated over $150 billion to hedge funds, making the APAC investors small but growing participants in a global industry that is estimated by tracker HFR to be managing $2.7 trillion. (Reporting by Nishant Kumar; Editing by Eric Meijer)