Allianz Global Investors to absorb research costs post-MiFID II

Will not charge clients

Allianz Global Investors is the latest asset manager to decide it will pay for research costs itself, rather than continuing to charge clients, when MiFID II comes into force in January 2018.

MiFID II requires the costs of research to be clearly identifiable when charged to a client, but a now growing number of asset managers have said they will bypass client charges entirely, choosing to pay for external research out of their own capital and/or making further use of in-house capabilities. JOHCM joins asset managers in absorbing research costs Other asset managers that have confirmed they would be paying out of their own capital include Hermes, T. Rowe Price, Vanguard, M&G, JPMAM and Woodford IM. Meanwhile, firms that have opted to continue charging clients for research...