Schroders update on payments for external research
MiFID II is an important piece of EU legislation which will come into effect on 3 January 2018. It provides firms with the ability either to continue to pass on certain external research costs to clients or to pay for them from the asset manager’s own resources.
Schroders does not pass on to clients the cost of research for its Quantitative Equity Products or Fixed Income strategies. This will be extended to include all clients of the Equities business covered by MiFID II.
As a global company we are giving due consideration to applying this approach to other jurisdictions, taking into account the best interests of our clients and local regulations.
Peter Harrison, Group Chief Executive, commented:
“While we have met the main research principles of MiFID II for a number of years, we have concluded that we should absorb the cost of research for those clients affected by MiFID II.
“We have always invested considerable resources in our in-house research to help clients meet their investment objectives. Our seasoned and diverse team of more than 120 equity research analysts around the globe is at the heart of how we identify investment opportunities for our clients.
“Year by year we have invested an increasing proportion of our in-house budget in data science to capture market signals and intelligence to make us better investors. This is all part of our focus on delivering outstanding performance to our clients.”
For further information, please contact:
Estelle Bibby, Corporate Communications
+44 (0)20 7658 3431
Anita Scott, Brunswick
+44 (0)20 7404 5959
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Doing this takes experience and expertise. We bring together people and data to spot the trends that will shape the future. This provides a unique perspective which allows us to always invest with conviction. We are responsible for £418.2 billion (€476.3 billion/$543.3 billion)* of assets for our clients who trust us to deliver sustainable returns. We remain determined to build future prosperity for them, and for all of society. Today, we have 4,100 people across six continents who focus on doing just this.
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Issued by Schroder Investment Management Ltd., which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
*as at 30 June 2017