Cazenove Capital is to launch its Cazenove European Income Fund in May 2012, subject to regulatory approval. The fund will be run by Chris Rice, head of pan-European equities, in response to what the firm sees as client demand for an income-focused product offering exposure to European equity markets.
The London-based firm has also switched James Sym to its European equities team to work closely with Rice in managing the new fund. Sym had been in the UK equities team at Cazenove Capital since 2007.
The fund will seek a combination of high income with some capital growth, aiming to outperform the FTSE World Europe Index. Income will be available quarterly.
The firm sees the yield on European equities as currently very attractive; for example, there are over 100 stocks with yields in excess of their price/earnings ratios. The fund will invest in a relatively concentrated portfolio of 30 to 50 stocks.