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T Rowe Price latest to pay for research under Mifid II

T Rowe Price latest to pay for research under Mifid II

T Rowe Price has joined the growing list of firms committing to bear the cost of third party research when Mifid II comes into force in January 2018.

US-based T Rowe Price said it will pay for the research of its UK-based investment manager T Rowe Price International to ensure its clients' ‘best interests are protected’.

Rob Sharps, T Rowe Price's co-head of global equity and group chief investment officer, said: ‘In recent years, we have continued to invest in our alpha-generating capabilities around the globe by adding analysts focused on fundamental research, quantitative research, corporate governance, socially responsible investing, and corporate access.

‘The supplemental third-party research we receive complements our own proprietary research.

‘With this decision, we have ensured that our clients’ best interests are protected while preserving our globally collaborative investment process and our access to important third-party research.’

The announcement followed Hawksmoor's decision last week to meet investment costs out of pocket, joining others such as Woodford Investment Management, M&G and Vanguard.

Hawksmoor head of research Jim Wood-Smith questioned the industry trend, however, saying he remained uncertain whether the consensus had idenitifed the 'right thing to do’.

He wrote in a note: ‘Do investors in a fund really believe that their managers should not have research? If the investors do not want to pay to give the managers the tools they need to do the job, then why have they invested in the first place? What about a desk? Or a biro? Or a telephone?’

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