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Cazenove to Create Independent Fund/Wealth Management Group

Contributing Editor

17 November 2005

Cazenove is to spin off its asset management arm, Cazenove Capital Management, at the end of the year into an independent group. Cazenove Capital Management has around £9.3 billion ($15.9 billion) of assets under management and is split largely between its £4.5 billion private client business, its £2.2 billion charity side and £2.6 billion in specialist investment management, which includes institutional, retail and hedge funds. Last year Cazenove entered into a joint venture with JP Morgan Chase on the investment banking side, and Cazenove Capital Management was not part of the merger, remaining a wholly owned subsidiary of Cazenove. Cazenove said the demerger would clarify the position of the business, which already operates in a largely independent way. But analysts are doubtful Cazenove Capital Management can remain independent. “It will struggle to retain its independence unless it develops a very niche-orientated business,” said a London-based analyst.