Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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?’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Kleinwort Hambros' boss on how to manage five banks

Profile: Kleinwort Hambros' boss on how to manage five banks

Welding together Kleinwort and Hambros – two of Britain’s most historic banks, founded in 1786 and 1839 respectively – was always going to be a challenge.

Wealth Manager on Twitter