December 18, 2017 / 2:26 PM / a year ago

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

 (Updates Amundi)
    Dec 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 II, 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 Amundi, Janus Henderson,
Schroders, Invesco, Man Group and Union
Investment have said they plan to pay for investment research
costs themselves, after previously saying they would pass costs on
to clients.
    Following is a breakdown of how asset managers have decided so
far to handle the matter:

 FUNDS PASSING ON COST TO CLIENTS   ASSETS UNDER MANAGEMENT
 Deka                               270 billion euros
 Fidelity International             $303.3 billion (June 30)
 FUNDS ABSORBING COST               ASSETS UNDER MANAGEMENT
 Aberdeen Standard Investments      583 billion pounds
 Allianz Global Investors           498 billion euros (June 30)
 Amundi Asset Management            1.4 trillion euros (Sept 30)
 Artemis Investment Management      $35.4 billion (Sept. 29)
 Aviva Investors                    344 billion pounds(Dec. 2016)
 AXA Investment Managers            735 billion euros (June 30)
 Baillie Gifford                    166.6 billion pounds (June)
 Barings                            $288 billion (June 30)
 BlackRock                          $5.7 trillion (June 30)
 BlueBay Asset Management           $51.7 billion (March 31)
 Deutsche Asset Management          711 billion euros (June 30)
 GAM Holding                        CHF 148.4 billion (Sept 30)
 Generali Investments               460 billion euros (Sept 30)
 Goldman Sachs Asset Management     Over $1 trillion
 Hermes Investment Management       30.1 billion pounds (June 30)
 HSBC Global Asset Management       $413.4 billion (December)
 Invesco                            $876.9 billion (July 31)
 Janus Henderson Group              $345 billion (June 30)
 JO Hambro Capital Management       29.2 billion pounds
 JP Morgan Asset Management         $1.87 trillion
 Jupiter Fund Management            $60.15 billion (June 30)
 M&G Investments                    264.8 billion pounds(Dec 31)
 Majedie Asset Management           14 billion pounds
 Man Group                          $32.9 billion (Sept. 30) 
 Newton Investment Management       55.2 billion pounds (June 30)
 NN Investment Partners             245 billion euros (June 30)
 Polar Capital Holdings             10.6 billion pounds (Sept 30)
 RAM Active Investments             $4.9 billion (August 31)
 Russell Investments                $277.2 billion (June 30)
 Schroders                          $536 billion (June 30)
 SVM Asset Management               593 million pounds (August)
 T Rowe Price                       $903.6 billion
 UBS Asset Management               647 billion euros (June 30)
 Unigestion                         $23.9 billion
 Union Investment                   310 billion euros (June 30)
 Vanguard                           $4 trillion (Dec 31)
 Vontobel Asset Management          101 billion Swiss francs (Dec)
 Woodford Investment Management     17.8 billion pounds (May 31)
 
($1 = 0.8478 euros)
($1 = 0.7470 pounds)
($1 = 0.9878 Swiss francs)

 (Compiled by Noor Zainab Hussain in Bengaluru and Carolyn Cohn,
Maiya Keidan, Simon Jessop and Helen Reid in London; editing by
Jason Neely and Louise Heavens)
  
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