Europe

Newton's Paul Brain said the possibility of Greece defaulting on its debt has tripled since a bailout was first agreed, resulting in a higher risk the country could leave the euro by the end of this year.

Announcing a haircut on Greek bond holdings would help restore a positive mood to bond markets, which have largely priced in such a move, said DWS Investments' CIO Asoka Wöhrmann.

Newton's Raj Shant has handed over the European Higher Income Fund to his colleague Fred Moore.

ON EUROPE

The EU and IMF have reached a deal on Greece which should prevent a default, but will involve a new round of austerity measures for the beleaguered nation.

Henderson Global Investors has increased its holding in rival Liontrust Asset Management, taking its position in the asset manager to more than 11%.

Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister's claims Greek government bondholders should contribute to a new aid programme.

‘If in doubt, delegate' seems to be the mantra of a growing number of investors this year, as asset allocation portfolios giving managers discretion to shift capital between markets are a popular choice.

As the euro crisis staggers on, Greek EU commissioner Maria Damanaki has raised the prospect of her country being forced out of the eurozone if it does not quickly assert control over its wayward public finances.

Newton manager believes tightening policy now could be detrimental to growth.