Cazenove Capital Management will give intermediaries access to unbundled share classes on its equity and multi-manager funds as part of a raft of changes the asset manager is making ahead of the RDR.
The asset manager’s post-RDR strategy sees the X share class become its default class for adviser platforms. The move is intended to favour investors coming through an adviser.
The £1m entry level on the wholesale share class, which carries a 0.75 per cent annual management charge for equity funds and a 0.5 per cent charge for multi-manager funds, will be waived for advised business through a platform.
Cazenove head of investment funds Robin Minter-Kemp (pictured) says: “From tomorrow onwards we will be going to all the platforms and offering our X share class as the default B2B offering to them.
“All IFAs will be able to offer their clients access to our institutional pricing and we will waiver the minimum, so long as it is through a platform.”
Cazenove’s existing retail class, which has an AMC of 1.5 per cent, and its unbundled A class with a 1 per cent AMC will be retained, mainly for legacy business and life companies.
The 1 per cent A class will also be used by direct-to-consumer platforms.
Minter-Kemp adds: “This is prejudiced towards clients wanting to have advice – we want clients to intermediate through advisers. We are in effect deterring direct investors.”
Cazenove head of UK retail Robert Thorpe says: “There should be no circumstance where a direct client can access a fund at the same price or cheaper than an IFA can offer it to them.”
As part of wider changes Distribution Technology has risk profiled Cazenove’s multi-manager fund range, with the six funds that make up the range given a risk profile of between four and eight.
Cazenove has also set up a new arm bringing together its multi-manager range and discretionary fund management service under the name Cazenove Portfolio Management Service.
The multi-manager range will cater to mass market clients with a minimum investment of £1,000, while the DFM service will be targeted at more sophisticated investors with a minimum investment of £250,000.
Cazenove is also set to launch a new version of its diversity balanced fund in April, subject to FSA approval. The fund will be a non-Ucits regulated scheme, and the current Ucits fund will be renamed.
Distribution Technology’s risk profiles for Cazenove’s multi-manager range: