MSCI Index Reports Gains in June

NEW YORK (HedgeWorld.com)–Early-reporting funds in the MSCI Hedge Fund Composite Index posted gains of 1.6%, with 65% of the constituent funds reporting through July 13, 2005. The positive June results represent needed good news for funds in the index, which weathered a tough spring.

All of the fund categories in the index–which MSCI calls process groups–grew in June. Directional trading managers (75% of funds reporting) were the winners for the month, earning 2.2% and building on a May gain of 1.6%. Close behind was the security selection index (64% reporting), up 1.9% for June following a 1.2% increase in May. Year-to-date through June, however, directional trading is barely up, returning 0.1%, while security selection funds have gained 2%.

The specialist credit index (58% reporting) and the multi-process group index (62% reporting) both earned 1.1% in June, following lesser gains in the previous month of 0.5% and 0.2%, respectively. Specialist credit is up 3% year-to-date, and multi-process is up 1.9%. Relative value fund managers came back from a May loss of 0.2% to earn 0.4% in June, with a loss of 0.4% so far on the year (64% reporting).

For the month of June, the MSCI World Equity Index gained 0.9% while the MSCI World Sovereign Debt Index lost 0.9%. Year-to-date, the world equity index is down 0.7% and the sovereign debt index down 4%.