Artemis and JP Morgan Asset Management are the latest asset managers to confirm they will absorb the cost of fund research.
Under Mifid II regulations being introduced in the new year, firms must disclose to clients how much they are paying for research.
Artemis and JP Morgan Asset have joined Aberdeen Standard Investments and Woodford Investment Management in announcing it will pay for research itself.
In a statement confirming the news, a spokesman for JP Morgan said: “JP Morgan Asset Management (JPMAM) will be absorbing the cost of external research for all Mifid II regulated clients.
"Research costs will be paid by the business and not by Mifid II client accounts.
"JPMAM already commits substantial resources to our internal research capabilities and we have not made any changes to our internal research teams as a result of this policy change. We also utilise external analyst research where we believe it can add value to client portfolios.”"
Fidelity announced its intention last week to move to a “variable” fund charging structure, and as part of this, company said it will not be absorbing the cost of research as part of this.
The company justified this by saying that as it has investors in its funds who are based both inside and outside the jurisdictions covered by the Mifid regulations, absorbing the cost of research would have meant effectively charging different prices to investors in the same funds.
david.thorpe@ft.com
