“There are a number of reasons for this, such as the additional layer of fees associated with multimanager funds, and the desire for a greater control over investments. “Foreign exchange and relative arbitrage are amongst the least targeted strategies and this is, again, a result of the change in the wider economic climate.” In its advice to managers, Preqin said that as the institutional investors became increasingly important, the managers needed to adopt practices that are suited to their new client base. “One of the most significant findings of the survey is the relatively high proportion of institutions that will be considering exposure with new managers rather than simply increasing or maintaining allocations to existing managers,” the report said. “During this period of transition we are seeing investors paying close attention to existing investments and becoming especially active in ensuring that they are assembling an effective portfolio aligned to their appetite for risk and general strategy through reviewing potential new investments.”