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FACTBOX-Asset managers' plans for handling investment research costs under EU's MiFID-II
October 2, 2017 / 4:40 PM / 2 months ago

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

 (Adds Goldman Sachs Asset Management)
    Oct 2 (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 providing 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.



    Asset managers Janus Henderson, Schroders,
Invesco and  Union Investment have 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)
 Deka                                270 billion euros
 
 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)
 HSBC Global Asset Management    $413.4 billion (December)
 Barings                         $288 billion (June 30)
 Goldman Sachs Asset Management  Over $1 trillion
 
($1 = 0.7540 pounds)

($1 = 0.8518 euros)

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

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