Cazenove is planning a monthly income fund for Wade Pollard, who joined the group from HSBC last yea...
Cazenove is planning a monthly income fund for Wade Pollard, who joined the group from HSBC last year, and has introduced another share class to its existing range.
As the group has no existing products in the income area, Robin Minter-Kemp, head of retail at Cazenove, said it has to discuss its proposals with its administrators, the Bank of New York, before going ahead with a launch.
Minter-Kemp said there is no timetable yet for the fund, although plans should be well advanced by April.
The group has now also introduced a new share class on all its equity funds in anticipation of depolarisation and fee-based intermediaries.
Alongside its retail 'B' share class and its institutional 'X' share class, Cazenove has added an 'A' share class on all its equity funds, for fee-based intermediaries.
The 'A' share will carry no initial charge and a 1% annual management fee as opposed to the 'B' share which has 1.5% annual charge and a 3.5% initial fee of which 3% is intermediary commission with 0.5% renewal.
Cazenove has offered this A share in the past to all its fee-based private clients but it has not been available to the retail market before.
He said: 'Post-CP 166, the follow-on from the FSA's depolarisation plans, there will be a significant uplift of fee-based intermediaries. This 'A' class has been designed for an intermediary to use as part of a fee-based menu.'
As with the institutional share class, which has no initial fee and a 0.75% annual management charge, the new share class will not incorporate the performance fee that has been introduced on Tim Russell's AAA-rated Growth and Income fund because of its already low annual fee structure.
On Russell's fund, Cazenove rebates 20% of the 1.5% annual charge should the fund fail to outperform the FTSE All- Share in any 12-month period, as exclusively revealed in Investment Week last month.
Cazenove is offering a 0.5% discount on Russell's fund on new Isa investments and on Isa and Pep transfers until 4 April. Since the fund launched in late December last year, it has already raised more than £50m.
Contact 0800 0159 592.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected