JO Hambro Capital Management has announced it will join a growing number of its fellow asset managers in absorbing research costs under the new Mifid II rules.
From 2018 the firm will pay directly for external research used by its fund management teams – which is expected to amount to £5m per year.
Ken Lambden, JOHCM Group CEO, says: “As a high conviction active fund manager, our proprietary research is key to delivering investment outperformance for our clients, but we also value access to selected research generated by external parties.
“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.”
T. Rowe Price, Rathbones, Hermes, Pimco, JP Morgan Asset Management, Vanguard and Unigestion are among the asset management groups that have pledged to fund their external research.