Cazenove Investment Fund Management is making inroads into the IFA market with the Cazenove universal investment bond, established in conjunction with AIG Life.
This unit-linked bond enables Cazenove to extend their business from institutional investors and private clients into the retail market through IFAs. It provides access to four Cazenove multi-manager funds Cazenove universal UK growth portfolio, Cazenove universal balanced portfolio, Cazenove universal growth portfolio and Cazeove universal international portfolio. Investors can choose any number of these funds.
The multi-manager team, headed by Mark Harries, will select funds for the portfolio funds on their own merit, with no obligation to include any fund management group. Each fund is analysed in detail and Cazenove arranges meetings with the fund managers to supplement performance-based research.
The funds are also available through the Cazenove universal portfolio service. However, this bond was designed as a tax-efficient investment bond for high-net-worth investors with at least £50,000. The bond structure allows growth to be rolled up gross, without investors having to go offshore. This means that the returns investors get will be paid after tax has been deducted.
Cazenove's use of four multi-manager funds allows investors to diversify across fund management groups, while still following a defined objective, such as UK growth. However, this fund is likely to appeal only to high-net-worth clients, as its £50,000 minimum investment may be too steep for the mass market.
According to Standard & Poor's, the Cazenove balanced portfolio B fund is ranked 43 out of 75 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to May 24, 2002.