The fund management arm of Britain's Man Group Plc expects its assets under management in Asia to grow by at least 10 to 15 percent over the next 12 to 18 months, a senior executive said on Thursday. Asia is also likely to represent a growing share of total assets under management for the world's largest listed hedge fund company, said Tim Rainsford, managing director, Asia Pacific, at its Man Investments arm.

"We certainly expect hedge fund growth in the region to increase by 10 to 15 percent over the next 12 to 18 months. And being an industry leader, we expect to be at least matching that or in excess of that," he told Reuters after a media briefing in Hong Kong.

Asia's hedge fund industry has boomed in recent years, with assets under management rising 30 percent last year to $132 billion, according to hedge fund research firm and consultancy Eurekahedge. This has since risen to $146 billion managed by more than 1,100 funds, it said.

Man Investments, the asset management division of the London-listed parent, had $61.7 billion in assets under management at the end of March. The firm said this has since risen to more than $65 billion.

Rainsford, who joined the firm in 2002, said roughly a quarter of the firm's assets were sourced from the Asia Pacific region, a percentage that could increase as it sells to more retail, high-net worth and institutional investors.

"Asia is certainly a part of the world where we anticipate increasing our focus," he said.

The Hong Kong-based executive said Man Investments was particularly keen on the prospects for sales into South Korea's institutional market.

He said there is a growing interest among big investors there in moving into alternative asset classes like hedge funds.

Other expected sources of growth include the Hong Kong retail market, where Man Investments will next week launch its second futures and options product to carry a principal guarantee.

The Man AHL Guaranteed Futures 2 Ltd. fund will invest in global futures and options markets, using the firm's high profile computer-driven quantitative trading system, which aims to capitalise on persistent price trends in markets.

The firm's closely watched Man's AHL Diversified Futures Ltd. fund, which invests in more than 100 global markets, has had annualised returns of 12.9 percent from May 1998, to the end of April.

But the trading system is vulnerable to sudden shifts in trends. The fund fell 8.2 percent in one week this year amid a tumble in global stock markets. And it returned just 0.5 percent in the 12 months to April 30, suffering after markets turned volatile in the second quarter of last year.

Man executives said the first version of the Man AHL Guaranteed Futures Ltd. fund launched in Hong Kong last year raised $52 million and that it hoped to better that total.

Source : Reuters