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Komfie Manalo, Opalesque Asia:

Performance and fees issues will continue to hound the hedge fund industry this year, according to Preqin's latest Hedge Fund Spotlight. These issues of performance and fees hogged the industry's headline in 2016, with several of the high-profile investors that made significant redemptions over the year citing these twin issues as the motivation behind their decision.

A big majority of 73% and 64% respectively of fund managers and investors interviewed by at the end of 2016 agreed that performance and fees are the key issues impacting the industry today. Therefore, in 2017 it seems these two concerns remain at the forefront of both investors' and fund managers' minds.

"Significant levels of investors believe that their interests are not aligned with those of their fund managers," Preqin said in the report. It added, "However, the majority (58%) of investors reported that they had seen an improvement in their favor in the terms and conditions charged by their fund managers over the course of 2016."

Over the recent years, the sector has seen management fees decrease, with single-manager funds launched in 2010 charged a mean management fee of 1.65%, whereas in 2016, this was 14 basis points lower at 1.51%. However, although the majority (55%) of investors reported they had seen an improvement in the level of management fees charged by their fund managers in 2016, over......................

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