The relative weakness contrasts with the robustness of the Asia-Pacific region's underlying real estate market and the solid performance of global real estate funds of funds.
China's state pension fund and self-regulating fund body welcomed the launch of the first funds of funds, but cautioned asset owners to use the vehicles for long-term diversification.
With mainland mutual fund managers set to launch their first funds of funds potentially as early as next month, industry participants point to challenges these products face.
The mainland securities regulator has given approval for asset managers to manufacture funds of funds, and some firms have been working towards this in recent months.
Brian Lim, Hong Kong-based head of emerging markets at the private markets fund-of-funds manager, spoke to AsianInvestor about industry trends.
Different investors have different ideas of how to generate returns as global interest rates remain at record lows.
New York-based alternatives provider Concept Capital finds allocators keen to seek out new hedge fund managers.
Although the latest data from Preqin looks good compared to 2009, the first quarter of 2010 shows the industry is still grappling with problems.
There have been a lot of new entrants to the private-equity market in China in the past year, but limited partners are becoming more discerning about who they invest with.
Following its acquisition by US firm AMG, the UK private-equity fund of funds will remain autonomous and envisages business largely as usual.
The fund of hedge funds manager is improving risk management transparency as it continues to build its Asia business, says Antonio Mu±oz-Su±T, head of EIM USA.