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The team at Cazenove Capital tell Emily Moore why, despite some volatility in the markets, there are still plenty of opportunities for investors
WHEN he decided to switch careers and enter the world of investment management, George Dupays had no idea that, just days after starting his first job in the sector, the markets would be thrown into turmoil by the US President’s “Liberation Day”.
But, as the assistant portfolio manager at Cazenove Capital acknowledges, Trump’s trade tariffs, combined with geopolitical events around the world, have certainly made his first couple of months in the role interesting.
And while the markets may have dipped and rallied in line with the changing global landscape and messages emanating from the White House, George’s enthusiasm for his new career has remained constant.
“I’ve always been fascinated by the world and the way in which an event in one part of the planet affects something seemingly unrelated on the other side of the globe,” he said. “That, combined with the fact that my work has always been client-focused and client-led, inspired me to step away from the world of film and television, and turn what was a side passion into a fully fledged career.”
Grateful for the opportunity that Cazenove Capital has given him, George – who, having passed his Investment Advice Diploma is now undertaking further industry qualifications – said he had been attracted to the firm because of its legacy and the potential it offered for him to “grow and develop”.
“The firm felt big enough for me to soak up information and have time to learn and develop but I also felt that its size offered me the potential to make a difference and not just be another number,” he said. “With a 200-year history and a global presence, there is also a tremendous opportunity to make a tangible difference locally as part of the Jersey team.”
Completing that team are client director and head of Jersey office Euan Dangerfield, portfolio director Paul Battams and compliance officer Fiona Connolly, all of whom reflect with pride on the way the business has grown following the firm’s acquisition by Schroders in 2013.
“Jersey is a tremendously important market for us and it is gratifying that, over the past decade or so, word of our work has spread and we have acquired more and more local clients, largely thanks to word of mouth,” said Euan. “The world of investment management is funny in that respect. While you might admire a jacket someone is wearing and ask them where they got it, and then go and buy a similar item, you don’t walk up to someone and say, ‘You’re looking very wealthy today. Who’s looking after your money?’
“The approach is much more subtle, and is built on trust, networking and recommendations, which takes time, but we have seen year-on-year growth and have acquired new clients, including Jersey residents, every year so far.”
Indeed, those years of successive growth mean that Cazenove Capital now looks after £1.5bn of assets for Jersey clients, with the four-strong Island-based team supported by almost 40 colleagues in Guernsey, one in Gibraltar and one in Bermuda.
Also adding to the benefits of being part of a larger group, says Paul, is the advice that filters down from the firm’s London-based chief investment officer, Caspar Rock.
“We have a centralised investment process, with a team, led by Caspar, made up of specialists in different asset classes,” Paul explained. “That team builds strategies which it believes will perform well in the market, and we can then tap into those strategies and match our clients with the approach which is most suitable for meeting their objectives.”
Of course, as Paul admits, and as George alluded to earlier, the marketplace is not “easy to navigate” at the moment but despite the turbulence, he says that there are still opportunities for clients, and that the importance of taking a long-term view cannot be underestimated.
“Euan and I have decades of experience in the industry, and have seen a lot of volatility and recognise that each event passes,” he said. “We’ve seen various financial crises, the dot.com bubble and, more recently, Covid, and while each of these events has had an undeniable impact on the markets, each one has passed.
“While each situation gives us a lot to think about, and a lot of information to relay to clients, the important thing is to make sure that portfolios are positioned accordingly and that clients understand the approach taken. Critically, when you are investing over the long term, it is vital to keep your financial composure and remember that the reason you are investing is to achieve that long-term capital growth.
“There will be blips along the way but history shows that a diversified portfolio is the best way to smooth that journey and minimise the impact of those blips.”
Another approach that could build resilience, adds Euan, is opting for a sustainable portfolio.
“We believe sustainable portfolios will deliver sustainable objectives without compromising financial returns over the longer term. Recent geopolitics have had an impact; however we are pleased with the overall performance of our sustainable strategies,” noted Paul.
Complementing that focus on driving returns and “better results for people and planet” is the firm’s commitment to supporting the local community.
“The company gives all employees two volunteering days each year, most of which have been spent on environmentally orientated initiatives, such as supporting Jersey Finance’s Greening Jersey programme, and removing nurdles and invasive species from the foreshore at St Ouen,” said Fiona. “We are also one of the sponsors for Durrell in Bloom and have collaborated with Durrell, Trees for Life and the National Trust for Jersey on a number of occasions.”
In a further show of community support, Paul explains that the team helps charities to develop long-term investment strategies.
“This is a growing area for us, and one which we would encourage organisations to talk to us about,” he said.
And on the subject of communication, Euan highlights the many ways in which clients can contact the team or access information about their portfolios.
“Every client is different,” he said. “Some sit back, knowing that we are looking after them and that they don’t have to worry. Others like to pick up the phone and have a chat with us about their investments or access the online portal to see how their portfolios are performing.
“Interestingly, given all the turbulence in the markets, people assume that the phone must be ringing all the time, with clients wanting to know what is going on. However, that isn’t the case, because we keep them informed and manage their expectations, so they know that, even during times of stress, there is no need to panic.”
- Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed in the conduct of banking, lending and investment business by the Guernsey Financial Services Commission. Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business.
