Cazenove
Capital

An independent review by our team of experts

Cazenove Capital provides wealth management solutions in the UK and Channel Islands - both directly to clients, and via financial advisers to their clients.

Cazenove Capital was created by the integration of Schroders and Cazenove, merging two strong family companies, both having been founded in the first quarter of the 1800’s.

Today, Cazenove has offices across the Europe, Asia and America.

They are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The Discretionary Fund Management Service provided by Cazenove Capital is a bespoke portfolio management service for advisers with clients who have assets of £200,000+ to invest.

This service, says Cazenove, is for advisers looking to outsource the day-to-day asset allocation and fund selection decisions, allowing more time to focus on clients' financial planning requirements.

There are two main categories of managed services offered by Cazenove Capital under DFM:

Bespoke portfolios
Model portfolio service

1. Bespoke portfolios:

For clients with more complex needs, they offer a range of bespoke solutions with varying investment styles including:

Active core and active/passive
Sustainable
Segregated equity mandates

What this entails can be summarised below:

Topic	Description

Minimum investment	£200,000

Fee facilitation	The bespoke portfolio offers the ability to set up client-agreed adviser fees for general investment accounts and ISAs should this be required.

Product expertise	Inheritance tax and other considerations such as sustainable investments can also be taken into account as requested.

Investment strategy	This depend on the category: Active Core and Active/Passive: A bespoke portfolio that can utilise any of the following structures: corporate pensions, individual savings accounts (ISAs), Tier 1 Investor Visas, offshore investment bonds, qualified recognised overseas pension schemes (QROPS) and self invested personal pensions (SIPPs). For active/passive portfolios, exposure to equity and fixed income may be provided by a mixture of active and passive instruments. Sustainable: Bespoke sustainable portfolios are similar to their core and active/passive portfolios and can utilise the same range of investment structures but with the application of more stringent sustainability criteria. Segregated Equity Mandates: The segregated approach gives clients access to a global portfolio of directly held equities alongside fixed income and other asset classes that reflect our broader investment philosophy.

2. Model portfolio service:

For clients whose needs are more straightforward, their model portfolio service offers varying investment styles including:

Core
Active/passive
Sustainable

What this entails can be summarised below:

Topic	Description

Minimum investment	Accessible through third-party platforms with an initial investment of £200 or with a regular investment scheme of £25 per month (these amounts may differ by platform).

Dynamic rebalancing	Portfolios are adjusted as necessary to stay within their risk profiles and in line with house investment decisions.

Investment strategy	This would depend on the category: Core: Six model portfolios including an income option that use a broad range of primarily active assets on both a long-term and an opportunistic basis in order to pursue their objectives. Active/Passive: Five model portfolios that use a broad range of assets on both a long-term and an opportunistic basis in order to pursue their objectives. Exposure to equity and fixed income is provided primarily by passive instruments. Sustainable: Five actively managed model portfolios that invest across the sustainability spectrum including ESG integration, as well as sustainable, screened and social impact strategies.

Cazenove Capital's DFM services, start by setting an appropriate asset allocation strategy for an advisers client and then creating and managing a personalised portfolio that matches their individual risk and goals.

They also claim to provide access to online support, including market update videos, portfolio updates, quarterly newsletters and events for advisers and their clients.

NOTE:

The value of investments and the income from them can fluctuate and an investor may not get back the amount originally invested.
We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

Academic evidence only shared with a select few firms across the world
A real-life example of why you should never try to outguess the market
Why a fund's past performance is not enough to predict future returns
Why you need to focus on what you can control and why this leads to a better investment experience
Why you should accept the markets for what they are
What can impact behaviour and make people seek instant gratification

The Pros

> Strong brand

The Cons

> Expensive way to invest, compared to passive investing

> Active methodology is academically questionable

What is the difference between Cazenove Capital's bespoke portfolios and model portfolio service?

The difference between the bespoke portfolio service and model portfolio service can be summed up in the table below:

Service	Model portfolio service	Bespoke portfolios

Online Reporting	✓ via platform	✓
Adviser support modules	✓	✓
Data feeds	✓ via platform	✓
Quarterly newsletter and investment summaries, factsheets	✓	✓
In-person meetings	-	✓
Adviser and client events	-	✓
Investment seminars	-	✓
Tax reporting	✓ via platform	✓

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or, representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by AES to be reliable and AES has reasonable grounds to believe that all factual information herein is true as at the date of issue. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorised reproduction or transmitting of this material is strictly prohibited. AES accepts no responsibility for loss arising from the use of the information contained herein.

‘AES’ refers to the AES Group’s separate but affiliated entities generally, rather than to one particular entity. These entities are AES Middle East Insurance Broker LLC registered with the UAE Ministry of Economy, United Arab Emirates, Licence no. 571368, and Commercial Registration no. 75162 and regulated by the UAE Central Bank license no. 189; AES Financial Services Limited, incorporated and registered in England and Wales with company number 06063185, authorised and regulated by the UK Financial Conduct Authority FRN: 464494; AES Financial Services (DIFC) Ltd, registered in the Dubai Financial Centre (DIFC) as a foreign company, license no.2128, and regulated by the Dubai Financial Services Authority (DFSA) Reference No F003476; AES International Limited, a private company incorporated and registered in the British Virgin Islands with company number 1839872; AES International Global Limited, a private company incorporated and registered in the British Virgin Islands with company number 1887885. Please visit our authorisations page for further information on regulation, redress and accessibility.

If you are outside the UK and we advise you or carry out other business, nearly all the rules, regulations and arrangements made under the UK regulatory regime (including the rules made by the FCA and the dispute resolution process provided by the UK Financial Ombudsman Service) will not apply to most aspects of the service you receive, such advice or business being provided from outside the UK. You should therefore clearly understand such rights and protection as are afforded in the jurisdiction where you receive advice. Local law, regulation and redress processes will apply in almost all cases, and will be different from that of the UK.

RISKS

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than the capital invested. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. For further information, please click here.

Cazenove
Capital

An independent review by our team of experts

REVIEW SUMMARY