Cazenove

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.

Cazenove Capital has confirmed it is merging its £69m UK Dynamic fund into its £62m UK Opportunities fund, both run by Julie Dean, next month.

Bond fund managers have warned they are concerned about the quality and risks of some debt coming to market after a record 12 high-yield bonds were issued last week.

Eurozone rescue funds amounting to €500bn will not be enough to meet the financing needs of Spain, Portugal, Belgium and Italy in 2011-2013, Cazenove Capital Management's Peter Harvey says.