By ADRIAN LOWCOCK 21/08/2009
The Cazenove Absolute UK Dynamic fund is being launched for retail investors from the beginning of September. The fund’s managers, Neil Pegrum and Paul Marriage, have met with our Research Analysts and the fund has been given a five star rating, our highest award, and a Bestinvest discount of 5%.
To discuss how to invest please call one of our advisers on 020 7189 9999.
What will it do?
The fund aims to achieve a minimum 10% compound net annual return, whilst minimising volatility, irrespective of market conditions. The fund will likely have a bias towards small and medium sized companies. It has the ability not only to buy (go long) but also sell (go short). Whilst this does sound very enticing, it is not a one way bet and is entirely dependent on the skill of the managers to make the right decisions. If they get it wrong, the fund could lose money, even in a rising market.
The managers
Neil Pegrum joined Cazenove in August 2004 and since May 2005, has been responsible for managing the Cazenove UK Dynamic Absolute Return Fund, an offshore version of the new fund. Neil is a director of Cazenove Capital and has 22 years investment experience.
Paul Marriage joined Cazenove in 2005 having previously worked at Insight where he joined as an Analyst in January 1998 and became Head of UK Small Cap Investments from 2003. Prior to this, Paul was an analyst at GH Asset Management.
Bestinvest’s opinion
Neil and Paul have previously read the market well and have demonstrated their skill by successfully increasing or decreasing exposure accordingly. We think their strength is the ability to determine turning points in the market and identifying structural changes within an industry by meeting company management. Performance of the offshore fund has been impressive, having returned over 80% from May 2005 to May 2009. During the same period the FTSE All Share Index rose less than 5%. Whilst past performance may not be repeated in the future, we believe the fund warrants five stars.
Why the Cazenove Absolute UK Dynamic Fund?
- Aims to achieve a minimum 10% compound net annual return independent of market conditions.
- Over the medium term the volatility will be lower than the FTSE All-Share Index.
- Fund size will be capped at £100 million to enable the managers the flexibility to seek out the best return.
- Managed by Neil Pegrum and Paul Marriage who have a Bestinvest MRI combined score of 98.1%.
- Available inside a stocks and shares ISA and SIPP.
Launch date
This fund will be available through Bestinvest on the FundsNetwork and Cofunds platform from the 15th September. The fund is being capped at £100 million and we expect that this could close to new investment soon after launch and therefore we are bringing it to your attention.
Please call one of our Advisers on 020 7189 9999 for an application form or you can buy online from 15th September 2009.