UK

(Updated 2:30pm) Banks are continuing to take the brunt of the latest market sell-off as fresh fears of a European banking crisis emerged on Monday.

Fund groups have applauded Morningstar's move to scrap its absolute return sector in favour of 18 different alternative investment categories, calling on the IMA to consider a similar move.

Maria Merricks asks top investment managers which vehicles offer the best opportunities.

IS THE UK A SAFE HAVEN?

Schroders' net flows into its retail funds dropped to £400m in the first half of 2011, from £5.1bn during the same period last year, as the macro-economic climate spooked investors.

F&C Asset Management saw net flows into its products turn positive in the first six months of the year, but the group faces a £10m payout for a lost legal dispute with the founders of its fund of hedge fund arm.

Barclays saw its pre-tax profits fall by a third during the first half of the year, with payment protection insurance (PPI) claims and reduced bond trading activity hitting earnings.

Liontrust is set to acquire the fund management business of Occam, including its emerging markets and Asia teams in a £3.9m deal.

As the UK slowly emerges from recession, Joanna Faith finds out whether small caps are fair game once more...

The Treasury Select Committee (TSC) has criticised the Vickers' report on the UK banking sector, arguing its proposed reforms are impossible to assess as they are unclear and lack detail.