Institutional investors continue to diversify their investment portfolios into alternative assets, increasingly via direct funds rather than funds of funds according to global data from Towers Watson.

Hedge funds have started 2013 on a high note; the Lyxor Hedge Fund Index was up +1.6% in January. Twelve Lyxor Strategy Indices out of 14 ended the month in positive territory, led by the Lyxor L/S Equity Market Neutral Index (+5.1%), the Lyxor L/S Equity Long Bias Index (+3.7%) and the Lyxor Special Situations Index (+2.6%)...

The European Securities and Markets Authority (ESMA) has published final Guidelines on remuneration of alternative investment fund managers (AIFMs). The rules will apply to managers of alternative investment funds (AIFs) including hedge funds, private equity funds and real estate funds...

In a new report, Fitch Ratings says that credit investment strategies need to adapt to less directional credit markets and exploit carry and relative value opportunities, while carefully managing rising duration, idiosyncratic and liquidity risks.

Insurers are likely to re-examine their allocations to fixed income assets in 2013 as continued low interest rates challenge business models and profitability, according to BlackRock's global insurance industry outlook, “2013: The Year Ahead.”