An “empowered investor base” demanding greater transparency and liquidity from managers, while also zeroing in on absolute returns and uncorrelated investment strategies, has led to a significant demand for alternative mutual funds in the U.S. and Europe, a new white paper finds.

In fact, American and European investors funneled more than $110 billion into the alternative strategies in 2009, according to SEI, which issued the report with Strategic Insight. The paper, entitled Exotic to Mainstream: Growth of Alternative Mutual Funds in the United States and Europe, assesses the opportunities and challenges for managers utilizing alternative investment strategies in a registered mutual fund. The paper argues that the trend toward “mainstream alternatives,” has gained momentum. Investments in non-correlated assets have traditionally been dominated by institutional investors.

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