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

SVM UK Emerging Fund

29/09/2017 12:15

(Adds Deka in the table) 
    Sept 29 (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.  urn:newsml:reuters.com:*:nL5N1KX4KH 
 urn:newsml:reuters.com:*:nL8N1L72AS  urn:newsml:reuters.com:*:nL8N1LF42N  urn:newsml:reuters.com:*:nL8N1LF55Y  urn:newsml:reuters.com:*:nL5N1LV4IJ  urn:newsml:reuters.com:*:nFWN1LU09N 
 urn:newsml:reuters.com:*:nL5N1LV3K4  urn:newsml:reuters.com:*:nL5N1LV5F2  urn:newsml:reuters.com:*:nL4N1LZ35X  urn:newsml:reuters.com:*:nL5N1M045D  urn:newsml:reuters.com:*:nL5N1LZ4MX 
 urn:newsml:reuters.com:*:nL8N1M73OP 
    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) 
 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) 
  
 
($1 = 0.7481 pounds) 
 
($1 = 0.8476 euros) 
 
 (Compiled by Noor Zainab Hussain in Bengaluru and Carolyn Cohn, 
Maiya Keidan, Simon Jessop and Helen Reid in London; Editing by 
Alexander Smith and Susan Fenton) 
 ((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