Three top-performing UK equity funds run by merging fund houses Schroders and Cazenove Capital are close to reaching capacity.

Schroders will build a multi-manager arm to rival John Chatfeild-Roberts' Jupiter Merlin range once Cazenove's Marcus Brookes and Robin McDonald join the firm, global head of equities Peter Harrison has said.

The UK's five major banks could see their profits take a significant hit in 2012 as regulatory pressures and a series of recent scandals take their toll, according to KPMG.

The Governor of the Bank of England has said the financial crisis is "far from over" as he joined fellow central bank chiefs including Ben Bernanke to discuss economic policy.

Schroders is considering having two flagship UK equity funds running alongside each other once its £424m acquisition of Cazenove Capital is complete.

Barings has added a multi-asset fund to its range with the launch of a Euro Dynamic Asset Allocation fund.

Schroders is in talks with Cazenove Capital over a possible acquisition of the boutique.

As advisers digest last week's revelation that top UK fund manager Richard Buxton is to exit Schroders after more than a decade at the group, attention is now turning to where to invest next.

The UK economy will post growth of 0.6% this year, according to the Office for Budget Responsibility (OBR), a downward revision from its December forecast.

Richard Buxton's Schroder UK Growth trust has moved onto a wide discount following news of the manager's departure for Old Mutual Global Investors.