RAM Active Investments To Absorb MiFID II Research Costs

Oct 12 2017 | 9:22pm ET

Geneva-based alternative asset manager RAM Active Investments is has joined the larger group of buyside companies that have decided to absorb the costs of external research commissioned on behalf of investors once the EU’s MiFID II rules go into effect early next year.

MiFID II requires investment managers to pay hard dollars for research and corporate access services provided by broker-dealers and third-party providers instead of bundling them with commissions. 

The new regulations offer three alternatives for how firms can account for the payment of these new costs, including paying for them from their own P&Ls – the option chosen by the vast majority of buyside firms with less than ninety days to go before the deadline, including AXA IM, Atemis, Unigestion, BlackRock, Allianz Global Investors, Deutsche Asset Management, Vanguard, T. Rowe Price, Schroders, Janus Henderson and JP Morgan Asset Management.

A much smaller group, including hedge fund manager Man Group, Invesco, BNP Paribas and Amundi, have opted to charge clients for the research costs. 

RAM AI will pay the costs up front from its own account in line with MiFID II’s regulations, the company said in a statement. Extensive internal research capabilities already form a fundamental part of the firm’s offering as an active manager. Additional external research will now be treated in the same manner, and the costs accrued will not be billed to clients.

Formed in 2007, RAM AI is an independent asset management company managing approximately $4.6 billion in AUM across systematic and asymmetric return strategies in both equities and fixed-income markets. 


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