Cazenove

Major companies favoured by leading European fund managers are facing severe price pressures as the global flight to safety propelled the Swiss franc to new heights today.

Despite last month's significant price movements in US treasuries, yields are still below the levels seen at the end of last year.

Managers are increasing their bets against the euro and forecasting falls of up to 20% in the single currency, even as the ECB continues to tighten monetary policy.

Group's CIO says QE has led to decline in domestic demand and could spark downturn.

Defensive companies have been out of favour for a long time but now a series of factors could push them back into the spotlight, writes Richard Jeffrey, chief investment officer, Cazenove Capital.

Financials still under pressure from unfinished business in the eurozone and the threat of downgrade for banks

Cazenove Capital Management saw pre-tax profits dip £9.5m last year on the back of a 96% fall in hedge fund performance fees, despite a 30% increase in revenue from its wealth management arm.

Slower global growth combined with the end of QE in the US has left commodities vulnerable to a further correction, Cazenove's Richard Jeffrey has warned.

Cazenove's Tim Russell is stepping down from his position as head of pan-European equities.

Managers running UK-focused portfolios have turned to international stocks for returns as the UK's recovery continues to disappoint.