Allianz Global Investors has joined the growing ranks of asset managers planning to absorb research costs rather than pass on costs to client under Mifid II, arguing it is in the spirit of the EU regulation.
The change will come into effect for its funds registered and managed in Europe from the beginning of 2018.
“We have determined that the efficient and best-suited solution for all parties involved is to assume external research costs ourselves. It is also in the spirit of Mifid II, which aims to avoid conflicts of interest in securities trading,” says AllianzGI CIO Steve Berexa.
“The majority of our research is already conducted through the use of internal resource and analysis. Intensive research is an integral part of our proposition as an active manager making it natural that they are borne by us and implicit in our management fee.”
US giants such as JPMorgan Asset Management and Vanguard are among those who have recently outlined plans to absorb costs. T. Rowe Price shortly after confirmed it was following in their footsteps while Unigestion boss Fiona Frick said absorbing costs was “simply the right thing to do“.