View more on these topics

Cazenove to go short duration for high income launch

Cazenove’s Peter Harvey plans to be “significantly underweight duration” in the new High Income fund, which is slated for launch next month.

Harvey says if market conditions remain as they are, the high-yield bond fund will be launched with a far shorter duration than the 3.7 years of its benchmark, the Bank of America Merrill Lynch non-investment grade (BB-B) index.

To achieve this, it will hold as much as 20 per cent in floating rate notes.

Harvey (pictured) says: “Global bond yields are at their lowest in history, well below nominal growth, while central banks print money.

“Those BB-rated bonds that have a close relationship with Bunds may suffer from a reversal in global bond yields.”

The Dublin-domiciled fund, which is awaiting regulatory approval, will invest in lower-rated companies predominantly in Britain and western Europe, with up to 20 per cent outside these regions. All overseas investment will be hedged back to sterling.

While Harvey’s existing portfolio, the £703m Strategic Bond fund, invests 40-60% in high yield, the High Income fund will invest between 60 per cent and 110 per cent in the sector.

The new fund will be composed of about 70 holdings, which Harvey says will be “large positions relative to
the market”.

Income from Cazenove High Income will be distributed quarterly.


Aegon calls for one year Sipp disclosure delay

Aegon is warning the successful implementation of the RDR will be put at risk unless the FSA delays Sipp disclosure requirements by “at least a year”. In March, the regulator outlined plans to increase disclosure requirements for personal pension operators. The changes, which are due to be implemented by the end of this year, will […]


Pritchards Stockbrokers estimates £3.4m cash shortfall

The special administrators of Pritchard Stockbrokers has estimated a £3.4m shortfall of cash in Pritchard’s client accounts. In a letter sent to clients last week, administrators Mazars warned it is “highly likely” there will be a shortfall in their share of Pritchard Stockbrokers’ cash assets which were recently frozen by the FSA. A creditor report […]

Sesame names panel for restricted advice

Sesame Bankhall Group has announced the initial product providers for its restricted advice proposition. The proposition will launch in the third quarter and includes Aegon, Aviva, Friends Life, LV=, Partnership, Prudential, PuProtect and Zurich. A few more will be added to the final list. Sesame chief executive George Higginson says: “We are committed to promoting […]


Yorkshire and Clydesdale banks to cut 1,400 jobs

National Australia Bank, owner of the Clydesdale and Yorkshire bank brands, is to cut 1,400 jobs in the UK by 2015 as part of a streamlining of operations. In an announcement to the Australian stock exchange, the bank said it had completed a strategic review of its British assets to adapt to weak economic conditions. […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm