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Fisch AM reveals Mifid II payment stance

Fisch AM reveals Mifid II payment stance

Zurich-based boutique Fisch Asset Management has announced it is going to cover costs for external research.

As part of the Mifid II research service providers will have to charge separately for services once the regulation comes into effect in 2018.

Asset managers will have two options: either they absorb costs internally or arrange an additional research budget with their clients.

Philipp Good, CEO and head of portfolio management at the firm, said the boutique already distinguished two types of research, which are cost-based research tailored to the firm’s needs - for instance macro analysis - and free broker research.

Good added that the company has paid for tailored external research for many years. ‘We will continue to pay for external research, just as we already do in these cases,' he said.

'Now this will also include any research we consider relevant that used to be free. This has been the norm at Fisch for many years, so the new directive changes very little for us in practice.'

When commenting about internal research of the firm Beat Thoma, CIO at the firm, said it helps to stay on top of the convertible and corporate bond market.

'Of course, our portfolio managers and analysts are a major expense, but our cost structure is designed such that we fund them ourselves,' Thoma added.

‘Additional external research is a much smaller item by comparison, and will remain so in future. What matters is that our employees get precisely the input they need to generate attractive returns for our clients.’

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