Asset Management

Asset managers: passing on research costs to clients will ‘reverse Mifid II damage’

Fund groups say the potential for improved equity research and corporate access ‘validates charges being passed onto asset owner clients’

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UK and European fund managers claim Mifid II puts them at a competitive disadvantage compared to US firms Photo: Getty Images

More than two-thirds of fund groups say gaining access to better quality investment research and securing meetings with senior company executives would justify passing equity research costs on to end clients.

According to a survey by Substantive Research of 40 global asset managers overseeing $15tn between them, an additional 73% said current Mifid II rules governing how investment research is paid for puts them at a competitive disadvantage compared to peers in the US.

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