A move out of safe-haven assets has seen government bond yields spike, but Tim Gardner, co-manager of Legal & General's Multi-manager fund range, says they should not be dismissed just yet.
Over the past two decades the FTSE All Share has beaten the majority of funds in the IMA UK All Companies sector, adding weight to the view the funds industry is in dire need of consolidation ahead of RDR.
Legal & General IM's Ben Gill expects the Bank of England may be forced to intervene to weaken sterling as it explores other forms of QE.
Legal and General Investment Management(LGIM) reported a 14% increase in operating profit to £234m for 2011, while AUM rose 5% to £371bn, from £354bn the previous year.
M&G tops both retail sales lists as investors seek out bond funds, while BlackRock's active and passive vehicles also prove popular.
A 44-year-old man employed at Legal & General Investment Management has been arrested by the Financial Services Authority (FSA).
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 launches reached a decade low last year as groups held back new products in the face of market volatility.