Larger asset management companies are driving down returns for shareholders by holding exceptionally high cash levels on balance sheets, according to a study.

The Cautious Managed sector should be re-defined as its current label is misleading, according to Chelsea Financial Services' managing director Darius McDermott.

It has been easy to make double-digit returns in the bond market over the past year, said Aegon's David Roberts, but managers will face a challenge if further QE causes inflation to rise.

Aberdeen's head of global equities Stephen Docherty has been adding defensive stocks to the £664m World Equity portfolio in anticipation of the end of the cyclical rally.

Net inflows of £5.1bn have surged into funds of funds over the first three quarters of 2010, higher than any other annual sales level.

Barclays Capital's Nathan Bance fears emerging market equities could move towards bubble territory as QE drives a wall of money towards the developing world.

Charlie Awdry has been reducing exposure to consumer staples, previously a long-term theme on the £768m Gartmore China Opportunities fund.

Skandia is replacing Martin Currie's Tom Walker from its team of external managers running the Global Best Ideas fund in favour of a US manager used by Gartmore.

M&G has confirmed it is to launch a multi-asset income fund next week.

Ben Bernanke has defended the Federal Reserve's decision to introduce a second round of quantitative easing, arguing it will not lead to a spike in inflation.