Institutional investment advisors forecast a continued emphasis on diversification - including into mutual funds - and an increasing interest in non-traditional asset classes for the upcoming year.

"The diversification theme continues to make sense. For those investors that are not as far along in their understanding of some of the newer types of asset classes, such as absolute-return funds and real estate, the evolution will continue and those non-traditional assets will continue to draw interest," Angeles Investment Advisors Principal Michael Rosen said.

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