Cazenove Absolute UK Dynamic fund

Betelgeuse_2

Hi

I wonder if anyone out there has invested in this fund and is beginning to question why there is a 20% performance fee when the performance so far has been considerably less than the 10% growth per annum suggested? The other thing that bothers me is that Cazenove don't give any details of the holdings the fund is invested in and they don't have a "contact us" facility on their website.

Myrmidon_J

Betelgeuse wrote:

I wonder if anyone out there has invested in this fund and is beginning to question why there is a 20% performance fee when the performance so far has been considerably less than the 10% growth per annum suggested?

The 10% figure is a target return and not a guaranteed return. I personally think that targetting 10% p.a. returns is wildly optimistic in the current economic climate, but it has been done before, and no doubt will be done again.

The performance fee will only apply if 'outperformance' is generated. So, if the absolute performance of the fund is disappointing, it is unlikely that you will pay a performance fee.

How log have you been invested?
And did you really think that you'd get 10% p.a. for nothing?

BULLNOTBEAR

See if you can access this fact sheet for November. It is available through the adviser part of the website. The fund will have long positions and short positions and even though the fact sheet gives some information on its holdings you are unlikely to get to know all the fund holdings. No fund manager would usually disclose all its holdings.

Neil Pegrum is a good manager and managed their Cazenove Uk Dynamic fund which has been successful with only holding 30-40 or less holdings. The target is 10% per annum and many of these absolute return funds will charge a performance fee above getting that return. I guess you were happy about paying this when you first invested. You should still look at a 5 year time horizon for this fund.

I hope you can access this fact sheet and it helps

http://www.cazenovecapital.com/Global/docs/investment-funds/fund-reports/absolute-uk-dynamic-mfr.pdf

I hope it helps.