Cazenove Capital

An independent review by our team of experts.

Review summary

Cazenove Capital

Cazenove Capital is a leading provider of discretionary fund management - both directly to clients, and via financial advisers to their clients. 

Their approach to managing clients’ wealth is measured and intelligent, and they work in partnership with advisers in an effort to deliver risk-adjusted returns, while maintaining a consistent focus on capital preservation.

Cazenove has a track record of working in partnership with advisers, having done so for over a decade.

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 in the Channel Islands, Germany, Italy, Switzerland, UK, Hong Kong and Singapore.

Overview

Cazenove Capital’s DFM service is a bespoke portfolio management service for advisers with clients with assets of £200,000+ to invest, who are looking to outsource the day-to-day asset allocation and fund selection decisions.

Cazenove Capital’s dedicated DFM team, supported by the depth of investment resource of the Schroder Group, will work with advisers and their clients to tailor and manage a portfolio to suit their risk profile and financial goals.

Cazenove Capital has four risk categories below, which serve as starting points, and which are then tailored for each individual client.

The categories are Cautious, Balanced. Growth and Aggressive.

Within each risk category Cazenove claims they have optimal asset allocations from which they can offer detailed guidance on the potential volatility of their portfolios, to assist with their selection and suitability.

The manager selection team conduct in-depth research with fund managers, testing not only that their views are consistent with their 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.  

Portfolios are constructed using a wide range of asset classes including ‘alternatives’ such as absolute return funds (including hedge funds) and structured products.

Cazenove Capital does have a proven long-term track-record: strong risk-adjusted returns with the average Cazenove Capital Cautious, Balanced Asset, Steady Growth and Equity Risk portfolios consistently delivering above average performance over 3, 5 and 7 years.

The pros

  • Strong brand
  • Traditional approach to beating markets
  • Secure

The cons

  • Expensive way to invest
  • Active methodology is academically questionable
  • Pays retrocession commission to your adviser which can create conflict
FAQs
Does Cazenove Capital run a Model Portfolio service?

Cazenove Capital delivers what they call a Model Portfolio Service to clients with £50,000+ to invest. 

This is a multi-asset solution, and portfolios consist of unit trusts, investment trusts, OEICs and ETFs.

This enables those with less to invest to gain exposure to Cazenove Capital’s and Schroders investment expertise.

Accessible through third party platforms, the six portfolios independently risk-rated by Distribution Technology, are MPS Cautious, MPS Balanced, MPS Growth, MPS Aggressive, MPS Equity Risk and MPS Balanced Income.

Another positive is Cazenove’s geographic footprint – they have experience dealing with clients living in multiple jurisdictions and investing in structures which are also domiciled in a number of different countries.

What are Cazenove Capital's fees and charges?

Fees and charges depend on the service opted for, in addition you will pay your adviser a fee and any platform / wrapper charges.

Because fees always impact on the returns you will make, we strongly suggest you have an X-Ray Review to uncover all the fees and charges, including commission paid, and any hidden wrapper fees for example. 

You might be surprised at what we can uncover for you.

Customer reviews
Watch out - commission eats away at your portfolio

At first look through the literature I was provided with I wasn't overly concerned with fees and charges - they looked fairly standard.

Then I found out about the potential of commission having been taken AND wrapper fees...all in all it adds up to a lot and takes away any of the other perceived benefits.

Expert verdict
Cazenove Capital

Whilst Cazenove Capital is a respected name and they provide a range of international actively managed DFM solutions, we believe that there are still better and more cost-effective alternatives for expat investors.

If you already have a Discretionary Managed Portfolio with Cazenove Capital and it is worth £50,000 or more, we recommend you have a free, no obligation X-Ray Review™ conducted to give you the information you need to make a decision on the best way forward.

“Thank you AES International for helping me and my family with your low cost no-nonsense approach. It is refreshing!”

Kristian Petersson

“With this sort of service you also expect to be paying very high fees, but it’s just not the case. I would definitely recommend AES.”

Jake van den Dries

“In the short time that I’ve been using AES I’ve made nearly ten thousand pounds and couldn’t be happier!”

Jackie Pym

    Request your X-Ray Review™ today!

    Because you deserve better results - nothing less.