The decision by Standard and Poor's to strip France of its prized AAA-rating came as no surprise to a number of fund managers.

Fund management groups struggled to raise assets for new products last year, with just eight funds launched in 2011 taking in more than £100m, according to FE data.

The UK economy is edging dangerously close to recession with business turnover declining for the seventh consecutive month in December, according to the latest business trends report.

Standard Life Investments' £9bn Global Absolute Return Strategies (GARS) fund has cut its exposure to UK gilts, taking profits as yields hit record lows.

Morningstar has unveiled its inaugural investment trust ratings, with Anthony Bolton's Fidelity China Special Situations trust given a ‘neural' rating by the new ranking system.

Barings is merging Colin Harte's Absolute Return Global Bond trust into Andrew Cole's £90m Multi Asset fund.

Fitch Ratings has ruled out the prospect of cutting France's AAA-credit rating this year but warned fresh downgrades are on the cards for Spain and Italy.

PIMCO chief executive Mohamed El-Erian said the Federal Reserve should hold back on unloading QE3, as he believes further stimulus will prove futile in attempting to reduce inflation.

The art market posted stellar returns in 2011, with the Mei Moses All Art index returning 11%, outpacing leading equity indices.

Fund launches reached a decade low last year as groups held back new products in the face of market volatility.