UK-based accountant Ernst &Young believes the number of investment opportunities in Asia-Pacific hedge funds will see significant growth, according its fifth annual survey of the global hedge fund market cited by online publication Asia Asset Management.

Hong Kong and Singapore are seen as “matured” Asian financial centres able to attract foreign investment and opening doors for fund companies abroad, and will continue to perform.

 “We estimate a large amount of cash is sitting in cash and assets in Asia-Pacific. This could be well fitted into hedge funds and other alternative investments,” said Roy Stockell, head of asset management,

Asia-Pacific, in the article. “The Asia-Pacific hedge funds industry is expected to see significant growth in hedge fund investments over the next 12 months.”

Emerging markets Korea and Taiwan were also highlighted as good investment opportunities. The recent regulatory changes in Korea mean there will be a rapid growth of hedge funds and similar services such as prime brokers. The new regulation gives more opportunities for hedge fund investors and managers, because they can directly invest in hedge funds with a minimum investment of 500 million Korean won ($440,000), according to Ernst and Young.

Taiwan was said to have “a friendly regulatory environment” which gives investors and managers more room.The survey polled 92 hedge fund managers and found fund managers and investors agree on key industry issues such as the impact of regulation, with 48 per cent of managers and 36 per cent investors agreeing that it was a top concern.

However there is still disagreement in other areas, 45 per cent of investors said that their funds’ boards of directors are very effective at carrying out their duties to funds, while almost 70 per cent of managers feel the board is very effective. Three-quarters of investors said it is important that managers completely outsource valuation to an administrator, but 71% of managers perceive risks here.