Investments in equity-based alternative asset funds established in developed markets outside the US and in emerging markets ended 2012 with solid results.
Both private fund classes earned their third quarter of positive growth for the year and each had double-digit gains as measured in US dollar terms, according to Cambridge Associates.
The Cambridge Associates Global ex US Developed Markets Private Equity and Venture Capital Index earned 4.6 per cent for the quarter ending 31 December 2012 and 14.0 per cent for the year. For comparison, the MSCI EAFE returned 6.6 per cent and 17.3 per cent for the same periods.
The Cambridge Associates Emerging Markets Private Equity and Venture Capital Index gained 3.5 per cent and 10.0 per cent for the quarter and year, respectively. Its public market counterpart, the MSCI Emerging Markets index, rose 5.6 per cent and 18.6 per cent over the same periods.
"Although neither the ex US developed nor the emerging markets index did as well as comparable public equity indices for the quarter or the year, the results looked better over longer periods. The developed markets index beat its public counterpart index in each of the other five periods shown above. And while the emerging markets index was less consistent, it outperformed its counterpart for the three- and five-year marks," says Miriam Schmitter, managing director at Cambridge Associates.
