Reuters logo
FACTBOX-Asset managers' plans for handling investment research costs under EU's MiFID-II
September 18, 2017 / 11:29 AM / a month ago

FACTBOX-Asset managers' plans for handling investment research costs under EU's MiFID-II

 (Adds SVM Asset Management)
    Sept 18 (Reuters) - New regulations taking effect next year
will force brokers in the European Union to charge clients
separately for investment research, rather than bundling the
cost in with trading services. 
    Part of a wide-ranging set of rules under the Markets in
Financial Instruments Directive, or MiFID II, the regulators
say the move is aimed at making European securities markets
more transparent and provide better value for money for
investors.
    The MiFID II directive comes into force in January and
leaves asset managers with a choice of whether to absorb the
cost of paying for outside research or pass it on to clients.



    German asset manager Union Investment and U.S. peer Invesco
 said they plan to pay for investment research costs
themselves, after previously saying they would pass costs on to
clients.
    Here is a breakdown of how asset managers have decided so
far to handle the matter:

 FUNDS PASSING ON COST TO CLIENTS    ASSETS UNDER MANAGEMENT
 Man Group's stockpicking unit GLG   $31.2 billion
 Amundi Asset Management             1.12 trillion euros (June
                                     30)
 
 FUNDS ABSORBING COST            ASSETS UNDER MANAGEMENT
 JP Morgan Asset Management      $1.87 trillion
 T Rowe Price                    $903.6 billion
 Vanguard                        $4 trillion (Dec 31)
 Jupiter Fund Management         $60.15 billion (June 30)
 M&G Investments                 264.8 billion pounds(Dec 31)
 Unigestion                      $23.9 billion
 Hermes Investment Management    30.1 billion pounds (June 30)
 Baillie Gifford                 166.6 billion pounds (June)
 Woodford Investment Management  17.8 billion pounds (May 31)
 BlueBay Asset Management        $51.7 billion (March 31)
 JO Hambro Capital Management    29.2 billion pounds
 NN Investment Partners          245 billion euros(June 30)
 Russell Investments             $277.2 billion (June 30)
 Aviva Investors                 344 billion pounds(Dec. 2016)
 Aberdeen Standard Investments   583 billion pounds 
 Newton Investment Management    55.2 billion pounds (June 30)
 Majedie Asset Management        14 billion pounds
 Allianz Global Investors        498 billion euros (June 30)
 AXA Investment Managers         735 billion euros (June 30)
 Deutsche Asset Management       711 billion euros (June 30)
 BlackRock                       $5.7 trillion (June 30)
 Union Investment                310 billion euros(June 30)
 UBS Asset Management            647 billion euros (June 30)
 Invesco                         $876.9 billion (July 31)
 Schroders                       $536 billion (June 30)
 Janus Henderson Group           $345 billion (June 30)
 SVM Asset Management            593 million pounds (August)
 ($1 = 0.8358 euros)
($1 = 0.7383 pounds)

 (Compiled by Noor Zainab Hussain in Bengaluru and Carolyn
Cohn, Maiya Keidan, Simon Jessop and Helen Reid in London;
Editing by Susan Fenton, Greg Mahlich, Alexander Smith)
  

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below