SVM Asset Management to pay broker research

Calculating feesEdinburgh-based SVM Asset Management has joined the list of asset managers that will pay for securities research out of its own business.

The firm said the decision to bear investment research costs under the revised Markets in Financial Instruments Directive (MiFID II), will result in a net reduction in costs for investors.

Last week a string of other firms also joined the lengthening list, including Germany’s Union Investment.

SVM said it had a seven-strong team of investment professionals that conducts fundamental equity research, analysis, and modelling, and supplements this with third parties.

“Third-party research is used as additional background information and to gain an understanding of market expectations, and this will continue after the implementation of MiFID II,” the firm said.

Colin McLean, managing director at SVM Asset Management, said: “Absorbing research costs means investors can access the SVM fund range at lower, more transparent fee. For several years we have formally evaluated our research use and dealing commissions, and this will facilitate the move to MiFID II evaluation.”

He added that ongoing, monitoring of all research costs would enable SVM to ensure “effective use is made of third-party research and that costs are managed”.

©2017 funds europe