The Edinburgh-based boutique has joined a long list of firms which have confirmed they will not pass the cost of research onto clients once the Mifid research unbundling rules come into force on 3 January.
The majority of asset managers have revealed they will shoulder the costs themselves, with investment giant BlackRock announcing it would absorb the cost last week.
Schroders, Janus Henderson and Invesco all previously said they would pass the cost on to clients as an extra fee, but have since backtracked and pledged to absorb the cost themselves.
SVM said its team of seven will continue to use external research to offer additional information on market expectations alongside its own in house research.
Colin McLean, managing director, SVM Asset Management, said: “For several years we have formally evaluated our research use and dealing commissions, and this will facilitate the move to Mifid II evaluation.
“Ongoing, detailed monitoring of all research costs will enable us to ensure effective use is made of third party research and that costs are managed.”
Research published last week found taking on the cost of research marked a 2-4% increase in operating costs for asset managers, and a 4-7% fall in revenue.
It added the impact would fall heaviest on small and medium-sized businesses, where the cost of absorbing research expenses would prove “disproportionately burdensome”.
