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Will Schroders multi-manager range impact performance?

Advisers say they will be monitoring future inflows following Schroders’ move to rebrand the Cazenove multi-manager funds and merge its own multi-manager range.

The entire range of Cazenove funds will be rebranded as Schroders MM funds from March.

As part of the rebrand Schroders’ existing trio of multi-manager of funds will be merged with the Cazenove range during Q2, subject to shareholder and regulatory approval.

Cazenove multi-manager duo Marcus Brookes and Robin McDonald will take on responsibility for the portfolios.

Schroders acquired Cazenove Capital last July for £424m.

Advisers agree there should be no immediate impact on the management style or fund size.

Skerritts head of investment Andrew Merricks believes the multi-manager funds should be easier to merge.

He says: “If you are merging multi-manager funds it is easier than merging single stock funds because most multi-managers will know who the best managers are.”

Chase De Vere head of communications Patrick Connolly says: “The money they will be managing is not an immediate concern and the Cazenove managers will be able to manage the funds in the same way as they did before.”

But Connolly adds the merged funds could attract flows that may eventually impact the portfolio’s “flexibility”.

He says: “The only time we would have a concern is if the funds attract so much more money that this then impacted on their flexibility but that is some way off.”

Thomas and Thomas managing director Darren Lloyd Thomas says: “Schroders and Cazenove are a good marriage. But as those funds cont-inue to grow, I would expect long-term underperformance as the funds become too big.

“At the moment though there is no cause for concern.”


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