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

SVM UK Emerging Fund

25/09/2017 09:42

(Adds HSBC Global Asset Management, Barings) 
    Sept 25 (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. 
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    Asset managers Janus Henderson  JHG.N , Schroders  SDR.L , 
Invesco  IVZ.N  and  Union Investment have said they plan to 
pay for investment research costs themselves, after previously 
saying they would pass costs on to clients.  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) 
 HSBC Global Asset Management    $413.4 billion (December) 
 Barings                         $288 billion (June 30) 
  
 
 
($1 = 0.8400 euros) 
 
($1 = 0.7390 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