Mary-Anne Daly, Chief Executive of Cazenove Capital, last week provided an update on the key matters that are on clients’ minds and how the business is addressing those priorities. Global Chief Investment Officer, Caspar Rock, sets out Cazenove Capital’s market outlook for the year ahead and the positioning of client portfolios with this in mind.
While the ability for portfolios to withstand external shocks and to continue to grow in real terms in the face of higher inflation remains an important client priority, Cazenove Capital’s most recent client survey* points to the equal importance of factors internal to each family such as their ability to bring up a healthy, enlightened next generation; for the family assets not to be squandered and for the family purpose to live on.
Cazenove Capital also observed a significant shift in social conscience, accentuated by the Covid-19 pandemic, with an increased interest in philanthropy and 64% of clients ranking ESG factors as more or equally important to them as financial returns.
Strategic priorities to meet client needs
Looking to the year ahead, continuing to attract, retain and train top, diverse talent remains a key priority. Mary-Anne Daly pointed to the quality of the team and specifically of its deep pool of next-generation advisers who are critical to building long-term, stable relationships of trust with multi-generational families. Additionally, she highlighted three strategic priorities as follows:
- Continue to enhance the client proposition with a particular focus on sustainability and private assets. For example, now providing all UK clients with data-points on the impact of their portfolios on People and Planet as part of regular valuations
- Expand Cazenove Capital’s strong franchise with UK business owners throughout the UK, continuing the regional expansion seen in 2021 when the firm opened a local presence in each Manchester, Birmingham and Bristol adding to its existing regional offices in Edinburgh, Oxford and Chester
- Continue to grow Cazenove Capital’s strong franchise in the UHNW and Family Office segment, with the Sandaire 2020 acquisition forming part of that strategy.
Mary-Anne Daly, CEO of Cazenove Capital, said: “It is evident that sustainable investment is becoming very important to clients. Over the last two years, we have seen a significant shift in social conscience, with clients seeking advanced sustainable and philanthropic solutions with proven impact. Clients are also seeking innovative ways to access private assets investments as a portfolio diversifier.
“Our business is focused on our clients and our people. As a largely family-owned business with a 200 year history and the backing of a Global FTSE 100 Asset Manager, we are uniquely placed to provide clients with the stability and personalised service they seek, alongside best-in-class investment, wealth planning and lending expertise.”
Key investment themes
Reflecting on the investment outlook for 2022, Cazenove Capital identifies four longer-term themes presenting investment opportunities for HNW and UHNW clients in the year ahead:
- The continued adoption of technology and changing consumption patterns
- The rising importance of China
- Green initiatives benefitting from fiscal expansion and policy measures
- A secular shift toward private markets
Cazenove Capital predicts continued, but slower growth in 2022 as government spending is likely to fall, with consumers and companies still holding cash to invest in improved productivity. Strong consumer demand and supply bottlenecks could keep prices rising early in the year, but UK inflation is expected to fall from a peak of around 5.5% in April.