08.24.2017

Unigestion To Absorb Research Costs

MiFID II, which comes into effect from 3 January 2018 for all asset managers operating in the European Union, brings about important changes to the regulation of investment research. The Directive’s rules essentially lay out three options for how firms can account for the payment of investment research ranging from paying for it from their own Profit and Loss (P&L) to charging clients directly through a Research Payment Account (RPA).

Unigestion has opted to pay for all investment research from its own P&L as this approach is consistent with the firm’s core value of always putting its clients first.  Furthermore, this will ensure the clear and transparent costs and charges delivery of its products across all asset classes.

Unigestion has a rich history of providing its clients with its own in-house research and has traditionally used external research alongside it to help inform its investment thinking and decision making.

This decision will not result in any change in management fees and Unigestion remains fully committed to continue delivering value for money to all of its clients.

Fiona Frick, CEO of Unigestion, said: “Our clients are at the heart of everything that we do and the reasons behind our decision to pay for all research ourselves go beyond regulation. It is quite simply the right thing to do to ensure that we continue to give our clients the clearest picture of how and why they are being charged for our products, alongside safeguarding them from any potential conflicts of interest in providing best execution. Both our bespoke in-house research and the research provided through external providers are integral to our investment process.  We will continue to use them both in tandem to deliver the best possible investment solutions and returns to our clients globally.”

Source: Unigestion

Sean Tuffy, an expert on financial regulation in asset management, tweeted:

Related articles

  1. Corporate Bond Trading on the Rise

    With Adam Conn, Head of Trading, Baillie Gifford

  2. The partnership will develop suite of U.S.-listed, physically backed, digital asset ETFs.

  3. Corvil Deploys Real-Time Analytics

    The addition of Essentia behavioral analytics solutions is an extension of Northern Trust Whole Office.

  4. Upstart exchange has seen market share increase to near 4%.

  5. Goldman Sachs Asset Management’s fundamental equity business manages over $20bn in thematic equities.