Since MiFID II’s research unbundling rules came into force in January 2018, with the regulatory intention of eliminating the sellside’s practice of offering investment research as inducements to utilise their execution services by mandating that explicit fees are charged for research, the ‘value’ of research has become a pressing question. Rather than passing these fees onto their clients, most European asset managers have chosen to absorb this cost. This cost is drawing increasing scrutiny from budget holders looking to cut costs in leaner times. To defend their research budget, managers must determine the value derived from the research they consume. However, this is fraught with difficulties and many asset managers are looking to technology providers to help ascertain its real value.
What are your research interations really worth?