Cazenove rolls out unbundled share class ahead of RDR

Cazenove Capital Management has made unbundled share classes available to intermediaries across its equity and multi-manager fund ranges ahead of the RDR deadline at the end of the year.

The AMC on the equity 'x' share class funds sold via advisers through platforms will be 0.75%, while the annual charge on the multi-manager funds will be 0.5%.

The £1m minimum investment has been reduced to £1,000 when purchasing the funds for clients through platforms.

The unbundled products will sit alongside the existing retail share classes, which have AMCs of 1.5%, as well as the A share class - typically sold through life products - which has an AMC of 1%.

As part of the change, Cazenove has also teamed up with Distribution Technology (DT) to provide a range of risk ratings for the multi-manager funds.

The group's six funds range from a risk profile four to eight on DT's scale. (Full details below).

To capture the opportunities presented by RDR, Cazenove has also launched a Portfolio Management Service (Cazenove PMS) offering advisers a way of diversifying their client banks.

The service is split between a discretionary fund management service - for clients with £250,000 worth of assets or more - as well as a risk-profiled model portfolio service for mass affluent clients.

The risk-profiled models - which have an AMC of 0.5% - consist of the group's multi-manager fund range, run by Marcus Brookes and Robin McDonald.

Rob Thorpe (pictured), director and head of UK retail at Cazenove, said the new PMS service would assist advisers as they prepare for RDR.

"Through the PMS, we can further assist advisers by delivering a range of risk profiled funds which offer low-cost pricing and have a credible investment track-record in excess of five years."

Robin Minter-Kemp, Cazenove head of investment funds, added: "It is about bringing the services together for advisers and their clients. We have form in this space, and it should have universal appeal."

With an AMC of 0.5%, the TER will be 1.25% for the risk-profiled models within the PMS, which the group said was as low as they could get it without compromising the investment mandate.

The group is also relaunching its Diversity Balanced fund with a NURS structure in April, subject to FSA approval, bringing it into line with the rest of the range.

The multi-manager range will sit in the following categories:

Fund                risk rating

MM diversity -             4

Diversity Income         4

MM Diversity Balanced 5

MM Diversity Tactical   6

MM UK Growth            7

MM Global ex-UK         8