The indices, the first of the kind for the industry, will measure the performance of hedge funds in four geographical locations -- Japan, Asia ex-Japan, Asia inclusive of Japan, and Australia. They will show median returns each month.

To support the indices and enable investors to identify all managers in Asia, the two companies also launched the Bank of Bermuda AsiaHedge Directory, containing contact data for 180 global hedge funds with Asia Pacific strategies.

The directory will be updated monthly online and includes managers who invest in Asia Pacific, managers based in Asia Pacific who invest globally and funds of funds investing purely in Asia Pacific managers.

Paul Smith, head of Global Fund Services Worldwide for Bank of Bermuda, saw these instruments as a milestone in the development of the overall hedge fund industry in Asia.

"Both the indices and the directory products will increase the transparency within an industry on which it has up to now been difficult for investors to gain a clear picture," said Smith at a press conference for launching the indices.

"They will for the first time provide essential performance and strategy data for anyone involved in the hedge fund industry in Asia, whether setting up a fund, investing in funds or advising on the industry," he added.

(People's Daily March 26, 2002)