Active asset management company J O Hambro Capital Management (JOHCM) is to directly pay for external research used by its fund management teams when the reforms to the EU’s Markets in Financial Instruments Directive (known as MiFID II) come into effect on 3 January 2018.
Ken Lambden, JOHCM Group CEO, says: “As a high conviction active fund manager, our proprietary research is key to delivering investment outperformance for our clients, but we also value access to selected research generated by external parties. The new MiFID II regulations increase the level of transparency around the cost of research services, and we feel that under these regulations the direct payment of this cost is in the best interests of our clients.”
The funding of JOHCM’s external research is expected to be approximately GBP5 million per annum.
