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REVIEW SUMMARY

Cazenove Capital

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. 

Our Verdict
A Closer Look
FAQs
Customer Reviews

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:

  1. Bespoke portfolios
  2. 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

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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

 

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 how much commission they can potentially take and about wrapper fees. All in all, it adds up to a lot and takes away any of the other perceived benefits.

Expert assessment of Cazenove Capital

Investing via Cazenove Capital is expensive and because it follows an active methodology, is academically questionable.

If you already have a Discretionary Managed Portfolio with Cazenove Capital and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

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