HFA Holdings Limited (HFA) said its wholly owned subsidiaries HFA Asset Management (HFAAM) and Lighthouse Investment Partners (“LHP”) reported positive investment inflows for the June quarter 2008. The fund manager said total net inflows of $215.87 million for the quarter continued the trend of positive inflows for the year to date.
Chief executive Spencer Young said that despite extreme volatility in international and domestic investment markets, HFAAM and LHP continued to receive net inflows.
Mr Young highlighted the fact that group assets under management had increased over the past two years.
“HFA Holdings provides our shareholders with a hedge against the negative impact that a bear market has on AUM and earnings of financial services stocks,” he said.
The company said that during June 2008, the MSCI World Index fell 8%, the S&P500 declined 8.43%, and the S&PASX 200 fell 7.46%. In comparison, its core investment funds, the LHP Diversified Fund and the LHP Global Long Short Fund, fell only 0.25% and 0.85% respectively.
Over the financial year ended 30 June 2008, the company noted negative returns of 13.12% on the S&P500, negative 13.4% on the S&P ASX200 and negative 10.4% on the MSCI versus a positive return of 0.11% for the LHP Diversified Fund and a negative return of 4.06% on the LHP Global Long Short Fund.
At 1451 AEST, shares in HFA Holdings were up 2c to $1.065.