The RBC Hedge 250 Index® had a net return of -0.47 per cent in June bringing the year-to-date return of the Index to 4.96 per cent.
These returns are estimated and will be finalised by the middle of next month. In addition the return for May 2006 has been finalised at -1.31 per cent.
The RBC Hedge 250 Index is an investable benchmark of the performance of the hedge fund industry. The Index operates in accordance with a unique construction methodology. Comprised of more than 250 actual hedge funds, the RBC Hedge 250 Index is positioned as the industry's most diversified and representative investable index. The Universe on which the Index is based currently consists of 5,521 hedge funds (excluding funds of hedge funds) with aggregate assets under management of $1.082 trillion.
Since its inception on 1 July 2005 through the end of May 2006, the RBC Hedge 250 Index has had a net return of 11.73 per cent. In comparison, over the same period, other investable indices have averaged 8.40 per cent while non-investable indices have averaged 13.42 per cent, according to information reported by the sponsors of those indices.
Background note: For the past 10 years, RBC's Alternative Asset Group has created structured products referencing portfolios of hedge funds. It holds investments in over 1,000 hedge funds. AAG is the oldest dedicated group in the industry and has developed a significant infrastructure and extensive experience in the areas of fund due diligence, risk analysis, transaction execution, and portfolio administration and valuation.
RBC Capital Markets is the corporate and investment banking arm of RBC Financial Group and is active globally in fixed income, foreign exchange, infrastructure finance, structured products, metals and mining, and energy. Its North American equity underwriting; sales, trading and research business dominates the Canadian market and supports a significant and growing franchise in the US middle market. The firm's international fixed income, structured products and treasury businesses are managed from London, which is the centre of a 24-hour trading platform with major hubs in Toronto, New York and Sydney.