Cazenove to spin off asset management arm

Cazenove is to spin off its asset management arm Cazenove Capital Management as a separate business, a move which follows the creation last year of JP Morgan Cazenove, the investment banking joint venture.

The asset manager is currently part of the Cazenove group, which includes the 50/50 joint investment banking and stockbroking venture with US investment bank JP Morgan Chase set up in November last year.

Andrew Ross, chief executive officer of Cazenove Capital, said on Wednesday: "We have long felt that a specialist, independent asset management business with the well-being of clients at the centre of everything it does is an attractive proposition for our clients, shareholders and employees".

Cazenove Capital has been through a restructuring under Mr Ross, who took charge about three years ago. He has revamped the business and developed its focus on private clients and charities. It now has nearly £10 billion in funds under management.

The fund management arm already has a separate board and has operated increasingly autonomously from its parent, but it will keep the Cazenove name and maintain other links through its client base.

Under the separation process, external shareholders in the Cazenove group will get one share in Cazenove Capital for every share they own in Cazenove. External shareholders, which include major UK institutions, hold about 10 per cent of the Cazenove group.

Details of the spin-off were sent to shareholders yesterday and they will are expected to vote on the proposed demerger at an extraordinary general meeting in December.