Cazenove Capital’s plan to launch a European income fund for Chris Rice, its head of pan-European equities, has been welcomed by analysts.
The Cazenove European Income fund will be Rice’s fourth portfolio, as he runs the Cazenove European, the Dublin-domiciled Cazenove European Equity (ex UK) and the Cazenove European Equity Absolute Return funds.
Andy Parsons, the head of investment research at The Share Centre, says the European income fund will an “interesting proposition” for both Rice and investors. (article continues below)
Rice will build a portfolio of between 30 and 50 positions from companies already screened for his growth funds. This means the manager has a high degree of familiarity with the stocks.
“It’s an interesting time for moving into markets such as this,” he adds. “Investor appetite is starting to broaden – people are realising that they’ve got to look outside UK shorelines for income.”
At the start of the year Bestinvest downgraded Rice’s Cazenove European fund from five stars to four, citing the scale of the manager’s responsibilities as one of the reasons.
However, Rice will be supported by James Sym, a fund manage, who will move from Cazenove’s UK equities team to its European equities team.
Parsons says this relationship will be “crucial” and says Sym’s support can “only be to the benefit”.
The fund, which Cazenove plans to open in May with a minimum investment of £1,000 in its retail share class, will target a return of 2% above the FTSE World Europe Index on three-year rolling basis.