Alternative

Asset management fees in alternatives have fallen due to supply and demand dynamics, according to a report by Mercer. In particular, asset managers are under pressure to negotiate fees for hedge funds, direct private equity and infrastructure funds.

Globally, in December, the Funds of Funds strategy (+1.09%) slightly outperformed the S&P 500 index. However, over the year, none of the hedge fund strategies could keep up with the stock market.

The Lyxor Hedge Fund Index was up +3.1% in 2012 (+1.1% in December). Twelve Lyxor Strategy Indices out of 14 ended the month in positive territory, led by the Merger Arbitrage Index (+3%) and the Long/Short Credit Arbitrage Index (+2.6%). Over the year, eleven Lyxor Strategy Indices out of 14 posted positive performances, three of them being up double digits: Long/Short Credit Arbitrage Index (+12.1%), Long/Short Equity Long Bias (+11.2%) and Fixed Income Arbitrage (+10.5%).

Swiss Re Capital Markets has successfully structured and placed USD 270 million of notes issued by Lakeside Re III Ltd., covering North American earthquake risk on behalf of Zurich Insurance Group ("Zurich").

Despite respectable performances, French quantitative managers are struggling to significantly increase their assets. Is it the fault of too cold local institutional?