AllianzGI's Macdonald: MiFID II could accelerate asset management M&A

Unintended consequences

The asset management industry can expect to see more consolidation following the introduction of MiFID II, according to Brunner investment trust manager Lucy Macdonald.

Allianz Global Investors, which runs the £312m Brunner trust, has said it will absorb research costs when legislation comes into force in January 2018. This is also the case for firms such as Goldman Sachs, Legal & General Investment Management and JO Hambro Capital Management. But Macdonald (pictured) said this would not be a viable option for all firms in the asset management industry. "The requirement for asset management companies to pay for external research is likely to result in further consolidation as managers face pressure on profits. This adds to a number of additional c...