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

SVM UK Emerging Fund

18/09/2017 12:26

(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. 
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    German asset manager Union Investment and U.S. peer Invesco 
 IVZ.N  said they plan to pay for investment research costs 
themselves, after previously saying they would pass costs on to 
clients.  urn:newsml:reuters.com:*:nL5N1LW33I  urn:newsml:reuters.com:*:nL5N1LW40D 
    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) 
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; 
Outside UK +91 80 6749 2764; Reuters Messaging: 
noor.hussain.thomsonreuters.com@reuters.net)) 
 
Keywords: EUROPE ASSET MANAGEMENT/RESEARCH