Europe

ONE TO WATCH

The European mutual fund industry shrunk by 1.3% in the second quarter, with a net decrease of more than 400 funds, as the number of mergers and closures began to accelerate again.

Developed equities attracted the bulk of inflows into exchange traded funds (ETF) in the second quarter, according to the latest figures from iShares, as investors continue to shy away from emerging markets.

Aviva Investors has hired Sunita Kara from Baring Asset Management as portfolio manager for European high yield.

BIG INTERVIEW

T Rowe Price European equity specialist Andrew Clifton reveals five of the best European banks to back against the backdrop of improving sentiment in the eurozone.

Fixed income managers have taken advantage of pricing opportunities in the high yield space to move back into the asset class, after outflows hit record levels in June following the Federal Reserve's tapering talk.

Shares in Lloyds Banking Group and Jupiter Fund Management soared on Thursday after both groups reported hefty profits in their half-year results.

With interest rates in the UK at a historic low, investors have been looking for income strategies to boost the yields of their portfolios.

Artemis' de Tusch-Lec tells Dan Jones how he swapped high quality names for value stocks to send his £260m fund into the top quartile over three years.