Schroders, Henderson and Invesco Take Fee Hit

Schroders, Janus Henderson and Invesco having previously made public their intention to pass on research charges to investors are now prepared to take the hit themselves

Jackie Beard, FCSI 10 October, 2017 | 3:38PM

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Fidelity’s announcement last week that it will be adding a performance element to research costs under the upcoming Markets in Financial Instruments Directive II (MiFID II) has rocked the fund management industry. The company said it will move investors to a new “variable” share class with significantly lower costs but with a new performance fee – which is refundable if the funds fail to beat the benchmark.

In the last few weeks alone, a raft of asset managers finally confirmed that they will - no doubt after much debate and discussion - absorb the costs of equity research themselves, rather than pass them on to investors in their funds. The likes of Schroders, Janus Henderson and Invesco have all publicly reversed their decisions in recent days, having previously made public their intention to pass on research charges to investors; they are now prepared to take the hit themselves. 

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About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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