Chris Turnbull, co-founder of ERIC (Electronic Research Interchange) has said that: “Fidelity’s decision to pass investment research costs on to clients may be seen as bold, particularly following a summer where the majority of Europe’s largest asset managers have declared the opposite.
“This drive for transparency should be commended. By aligning its management fees more closely to performance Fidelity has increased exposure to its achievements. Investors want results and will be prepared to pay for high quality research if fund managers are using it to consistently deliver outperformance.
“An asset manager’s decision on how to pay for research is unique to that firm, and has to work for the organisation and its client base. If the decision improves transparency and the manager’s ability to achieve a better end result the MiFID II unbundling rules have done their job.”