Cazenove Capital plans to launch a European income fund for Chris Rice, head of pan-European equities.
The Cazenove European Income fund will open to investors in May, subject to approval from the Financial Services Authority, and target a return above the FTSE World Europe Index.
Robin Minter-Kemp, head of investment funds at Cazenove, says: “Demand for income is unfaltering and close consultation with our clients has indicated strong backing for this asset class.”
The fund will invest in a “relatively concentrated” portfolio of between 30 and 50 holdings from European equity markets, using a business cycle approach to portfolio construction.
Rice says: “In recovery phases of the market, this will see us favouring cyclicals with the potential for dividend recovery while in an economic slowdown we will be biased towards companies offering potential for dividend growth. (article continues below)
“This approach should enable us to provide consistent and increasing levels of income for our investors with some capital growth in a range of market conditions.”
The fund has a minimum investment of £1,000 in its retail share class, with a 5% initial charge and a 1.5% annual management charge.
In addition, Cazenove has appointed James Sym to its European equities team to support Rice with the running of the new fund.
Sym has been a member of the asset manager’s UK equities team since 2007, working alongside David Docherty and Matt Hudson on his income products.