Good intentions behind Mifid II set to backfire
The EU directive could destroy the research landscape, argues Nick Burchett
The EU directive could destroy the research landscape, argues Nick Burchett
Fidelity International has reversed its stance on research costs and is joining many asset managers in absorbing the fees of external research, instead of passing it on to clients.
Axa Investment Managers (IM) Framlington Equities has restructured its internal research capabilities to integrate five main thematics it believes will impact future returns.
Liontrust has warned investors to expect up to a £1.5m hit to revenues from its decision to absorb research costs under incoming Mifid II regulation.
More than half (53%) of European investment professionals expect firms to absorb the cost of research under Mifid II regulations, according to a survey by the CFA Institute.
Mifid II rules on payment for research could extend to sales and trading roles, the Financial Conduct Authority (FCA) has warned.
The Securities and Exchange Commission (SEC) has announced that UK investment firms will be able to temporarily access research from the US post-Mifid II.
Rathbones has appointed Richard Briggs and Stuart Chilvers as analysts in its equity and fixed income teams, respectively.
T. Rowe Price has joined a growing number of fund managers that have pledged not to pass on research costs to clients.
To comply with new Mifid II regulations, Rathbones Unit Trust Management has decided to bear the costs of its fund research but admitted unit trust margins “will not be unaffected.”
A new global survey of asset managers has revealed more than a quarter believe the cost of ethical investing will soar in the coming years.
Credit Suisse has released a report which forecasts real equity returns will be limited to 4-6% over the next ten years and real bond returns will be close to zero.