‘Wholesale changes’ to fund groups’ approach to research ahead

Careful-Research-Business-Finance-Paperwork-700.jpgFund groups have instigated “wholesale changes” to how research is bought and sold, according to the Electronic Research Interchange (ERIC).

In its annual results published today, Jupiter announced it will be putting research costs through its accounts as of next year, following in the footsteps of Woodford IM, Baillie Gifford and M&G.

“We will take a consistent approach to the costs of research we use by taking it all through Jupiter’s accounts from 2018 with no change in the management fee, adding around £5m of costs from 2018.” the firm said.

“During 2017 we will work with our service and research providers to implement these changes. These are important steps in simplifying our unit trust pricing structure as we diversify and grow.”

Chris Turnbull, ERIC co-founder, says the largest asset managers re-evaluating their research consumption underlines the impact of MiFID II.

“Relationships between the buy side, the sell side, and analysts will be deeply affected under the new regulatory regime,” he says.

“It does seem clear that the adoption of alternative models for accessing research will become the norm. While we believe that investment banks will continue to provide valuable, quality research, it looks likely that new procurement and distribution strategies, such as open and transparent trading platforms, will continue to gain traction in the months leading up to January 2018.”