Active Asset Manager To Foot £5 Million MiFID II Research Bill

Josh O'Neill

31 August 2017

has said it will cover an estimated £5 million ($6.4 million) in research costs once a new European directive is implemented next January.

The active asset manager has followed in the footsteps of the likes of Vanguard, JP Morgan Asset Management and Unigestion in deciding to absorb the costs of equity research rather than pass them onto clients ahead of entering into force. The wide-reaching directive, which transposes into law on 3 January 2018, will require asset managers for the first time to “unbundle” the costs of research, separating them from trading fees in a bid to improve pricing transparency.

“Our proprietary research is key to delivering investment outperformance for our clients, but we also value access to selected research generated by external parties,” Ken Lambden, JOHCM group chief exeucitve, said. “The new MiFID II regulations increase the level of transparency around the cost of research services, and we feel that under these regulations the direct payment of this cost is in the best interests of our clients.”

JOHCM's external research is forecasted to cost around £5 million per annum, the firm says.