Cazenove Capital is a leading provider of discretionary fund management for you and your clients. Our attitude to managing your clients’ wealth is measured and intelligent, and we work in partnership with you to deliver strong risk-adjusted returns while maintaining a consistent focus on preserving wealth.
Partnering with Cazenove Capital makes good financial sense – for your business and your clients
The Discretionary Fund Management Service is a bespoke portfolio management service for advisers with clients with assets of £200,000+ to invest.
This service 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.
If you have clients who require personalised portfolios then Cazenove Capital’s discretionary investment service gives you the flexibility to match their individual needs with precision. By developing a close working relationship with us, you’ll be able to:
You’ll enjoy a range of benefits when you choose Cazenove Capital’s discretionary investment service:
Spend more time building relationships with clients and managing your business.
Your clients benefit from our extensive investment experience, skills and resources.
Protect your business against a continuously changing regulatory and investment landscape.
We work with you and your client to determine which of our four risk categories is most suitable for them, these can be found in DFM risk profile. Within each risk category we have optimal asset allocations from which we can offer detailed guidance on the potential volatility of our portfolios to help you with the outcomes of your own risk profiling.
Our specialist investment team draw on research from the wider Schroders Group and external investment community in seeking to construct portfolios which aim to achieve strong risk-adjusted returns. Our four risk categories serve as starting points and are tailored to meet individual client requirements.
Our manager selection team conduct in-depth research with fund managers, testing not only that their views are consistent with our own, but that the structure of their funds appropriately reflect their stated strategies.
Portfolios are constantly reviewed and altered as appropriate to keep them aligned with developing market conditions and client objectives which may, of course, change over time.
To grow the real value of your client’s wealth, we believe in the power of three key ideas:
2. Active decisions
Adding value at every stage of the business cycle
3. The long term
Power of compounding
Past performance is not a guide to future peformance.
Your capital is at risk.
For clients with more complex needs, we offer a range of Bespoke Solutions with varying investment styles including active, passive and sustainable strategies. We can tailor our approach to meet your clients’ needs.
Active Core and Active/Passive
Segregated Equity Mandates
We understand that every adviser and every client is different. We aim to meet your clients’ individual requirements and deliver the highest level of service both to you and your clients.
As the client’s financial adviser:
We commit to:
The Model Portfolio Service is a discretionary investment management service that consists of a suite of risk-profiled portfolios, each aiming to deliver strong risk-adjusted returns.
This service is for advisers looking to outsource investment management in a platform environment, servicing clients who may not need a bespoke service as it would not be cost-effective.
We are focused on preserving and growing the value of your clients' wealth after inflation, in a tax and cost-efficient manner. Our investment philosophy is underpinned by two key factors: an understanding of the business cycle and its impact on different asset classes and underlying investments, as well as a strong belief in the merits of diversification.
Our specialist investment team construct portfolios with the aim of delivering strong risk-adjusted returns, drawing on research from the wider Schroders Group and external investment community.
We construct optimal asset allocations for the models based on our in-house strategic asset allocation aligned to six risk categories (these can be found in the MPS options tab). These are independently risk rated by Distribution Technology and Defaqto.
Our model portfolios are rebalanced in conjunction with our changing investment views. They are altered as appropriate to mitigate portfolio drift and remain consistent with strategy and asset allocation parameters.
1. The compliance burden and regulatory challenge
Financial advisers have been bombarded by regulatory updates over recent years and a model portfolio solution can help to address this increased compliance burden:
|PROD – The Product Governance and Sourcebook amendments in 2018 mean that advisers now need to segment their clients and provide appropriate products and services||A Model Portfolio service can provide an effective solution for a client segment requiring:
• Flexible investment options aligned to their risk profile
• Good quality reporting across all their investments
• Investment on a platform
• A cost competitive solution
|MiFID II – Reporting requirements, which include depreciation reporting, are now more onerous||The regulatory reporting burden is fully supported by the platform when investing client assets in a model portfolio|
|Centralised Investment Propositions – More than 86% of advisers have a CIP in place but can this help to avoid ‘shoehorning?’||A model portfolio solution should offer a range of portfolios to support a range of clients and outcomes|
2. Increasing business efficiency
A model portfolio service can reduce the time, costs and risks associated with managing your own portfolios:
Doing this yourself requires:
At Cazenove our specialist team draw on the significant range of resources across our business to carry out all of these vital functions for the benefit of you and your clients.
3. Stock Markets and political risk
It’s difficult to keep on top of everything and when you’re seeking to understand how economic and market developments could impact your clients, it helps to work with an experienced partner with a global presence and significant research capability.
Our specialist multi-asset investment team comprises over 100 professionals with a local presence in the US, UK, Europe and across Asia.
 Lang Cat Financial – The future of portfolios management on platforms
For clients whose needs are more straightforward, our Model Portfolio Service offers varying investment styles including active, passive and sustainable strategies.
Our MPS models are available on the following platforms:
Active/Passive quarterly investment summary
Sustainable quarterly investment summary
Core quarterly investment summary
|Cautious||Download factsheet||Download factsheet||Download factsheet|
|Balanced||Download factsheet||Download factsheet||Download factsheet|
|Balanced Income||Download factsheet|
|Growth||Download factsheet||Download factsheet||Download factsheet|
|Aggressive||Download factsheet||Download factsheet||Download factsheet|
|Equity Risk||Download factsheet||Download factsheet||Download factsheet|
With access to additional service, you can help your clients solve a wide range of financial challenges.
In addition to managing personalised investment portfolios, we offer a wide range of other bespoke service that most other wealth managers find difficult to match. It’s just another reason why financial advisers choose to align their businesses with Cazenove Capital.
If you are interested in any of the below, please get in touch to discuss how we can help further.
Utilising your capital gains tax allowances if applicable
Auto-subscription to your annual ISA allowances if applicable
Global agreements in place with all major SIPP Providers
Global agreements in place with all major Offshore Investment Bond Providers
By offering clients the ability to bank with us we provide a suite of services, all focused on meeting our clients’ long-term needs and achieving their future goals. We are committed to offering every existing client the banking services they need.
From mortgages, bridging finance, and lending against investment portfolios, to cash deposits and foreign exchange - we have a variety of banking services available exclusively to clients.
Your home may be repossessed if you do not keep up payments on your mortgage.
We offer accounts that allow instant access to funds, as well as those with competitive rates that are fixed term or require a notice period ahead of withdrawals.
Our notice accounts range in duration from 35 to 190 days and pay interest on deposits over £10,000. The current rates can be found here.
We also offer fixed-term deposit accounts in selected major currencies, with durations ranging from one day to two years. These pay interest from £50,000 with interest added to the account at the end of the term.
Clients using this service have two options:
The first is a product run by Cazenove Capital that offers competitive rates on minimum new deposits of £50,000 for existing clients, and £1 million for new clients.
The interest rates for this service are available here.
The second option is a Designated Client Account, which has a minimum cash requirement of £1 million.
Homes are often a client’s most important priority. For clients taking out loans in excess of £500,000, we offer mortgages with a maximum loan-to-value of 60%. We offer residential or buy-to-let mortgages, and can offer both fixed and variable rates.
Further details of our rates and deals are available on application.
Your home may be repossessed if you do not keep up payments on your mortgage.
We can lend funds to clients secured against a discretionary portfolio of investments held by us. Clients can borrow money in this way for up to five years on an interest-only basis. Because liquidity needs can change unexpectedly, we allow our clients to pay loans back at any time with no redemption penalty.
Loan rates are available on application
Our bridging loans can be repaid or part repaid at any time with no penalty.
Details of our rates for bridging loans are available on application.
We can offer forward foreign exchange contracts, currency at a spot rate and foreign exchange swaps.
Investing in smaller UK companies can play a useful role in estate planning because of the tax reliefs available. When you invest in qualifying shares and leave them in your will, the transfer to your beneficiaries after you die should be 100% exempt from inheritance tax (IHT), providing you’ve held them for at least two years.
Your clients can take advantage of this exemption by investing in our IHT portfolio. We select shares in companies listed on AIM and ISDX and actively manage the portfolio on their behalf. By making sure the shares are eligible for business relief, these assets should fall outside their estate for the purposes of IHT.
Your clients will benefit from any income and capital growth of their underlying investments, and they can make additional contributions or withdraw money at any time if their circumstances change. They can also invest through an ISA to maximise the potential tax savings.
Spanning social and financial investments, sustainable investing covers a broad range of environmental, social and governance (ESG) topics. For many of our clients, considering ESG issues is becoming fundamental in helping them ensure that their investments shape better outcomes for society, as well as drive long-term performance.
Central to our sustainable investment approach is the understanding that those companies that can adapt and thrive in a climate of rapid social and environmental change will be more successful in growing their business. Careful consideration of material ESG issues allows us to potentially mitigate risks that could arise from these issues as well as identify opportunities. We work with an extensive team of sustainability specialists as well as proprietary tools from the Schroders Group to help us appraise the companies that we invest in.
Our sustainable investment solutions combine our tailored wealth services with the depth and breadth of expertise at Schroders and our best ideas from across the market. We work with you to understand your values and how to best reflect them in your investment strategy.
Our sustainable investment approach is set out in full in our Environmental, Social and Governance (ESG) Policy.
We have the investment expertise to help your clients who are looking for a closer connection to the UK through a Tier 1 Investor Visa. Our well-resourced team has considerable experience of navigating the rules set by the Home Office and working with other advisers through the application process.
We’re fully committed to serving the needs of American clients based in the US and around the world who are looking to have their assets managed from London. Our large network of analysts conducting proprietary research provides us with a truly global perspective on investments and markets. If you have American clients living in the UK or abroad, we’re here to help.